NFU SCOTLAND has urged the UK Government to take action to ease the financial pressures facing farmers and crofters in this week’s Budget.
The union is calling for measures to reduce agricultural costs, including greater clarity over the impact of the Carbon Border Adjustment Mechanism (CBAM), which is due to come into force in January.
The mechanism, designed to place a carbon price on certain imported goods, could lead to higher fertiliser costs for agricultural businesses.
NFU Scotland has previously written to the UK Government seeking clarification on the scheme, but says farmers and crofters still lack the information needed to assess its financial impact.
Although illustrative rates have been published, the union wants confirmation of the actual rates businesses will face when the mechanism takes effect.
With farmers already facing high fuel, fertiliser and energy bills, NFU Scotland has warned that further increases could place additional strain on the sector.
Union president Andrew Connon said: “Farmers and crofters are already facing significant financial pressures, and the prospect of further increases in essential input costs is deeply concerning.
“With CBAM coming into force in January, businesses need certainty over what it will mean for fertiliser prices and their bottom line. We recognise the importance of tackling carbon emissions, but this must not come at the expense of the competitiveness of Scottish agriculture.
“Next week’s Budget is an opportunity for the UK Government to demonstrate that it understands the pressures facing our industry and is prepared to take meaningful action to address them.”
The union is also calling for wider measures to reduce agricultural costs, including retaining the reduction in red diesel duty, which helps keep fuel costs down for farming businesses.
It says the Budget, due on Wednesday, October 28, provides an opportunity for ministers to offer greater certainty and financial relief to Scotland’s farming and crofting communities.
