Scottish arable farming faces pressure from cost-price squeeze
© Tim Scrivener Scotland’s arable farming sector faces increasing financial pressure due to low crop prices, rising costs, and competition from imported wheat, putting growers’ profitability at risk.
NFU Scotland (NFUS) has raised concerns about fair pricing and contract structures, particularly for malting barley, following recent meetings with the Maltsters Association of Great Britain (MAGB) and the Scotch Whisky Association (SWA).
Despite favourable weather conditions for winter barley, wheat, and oilseed rape crops, the union says the outlook for 2025 remains uncertain.
See also: UK barley export volumes confined by quality concerns
NFUS combinable crops chair, Jack Stevenson, highlighted the challenges: “Unsatisfactory crop prices and the ever-increasing cost of inputs are squeezing Scotland’s arable sector harder than ever.”
Mr Stevenson noted that global wheat prices remain low, and demand for malting barley has yet to increase, leaving growers frustrated with prices for the 2024 crop well below expectations.
Economics
The economics of growing malting barley were addressed at a recent MAGB event by NFUS vice president Andrew Connon, who stressed the importance of a proper price premium for farmers.
Mr Connon warned that without this, “the risk-reward equation does not make sense” for growers.
NFUS has also engaged with the SWA to discuss the challenges of producing malting barley, a crop with significant management costs, lower yields compared to feed barley, and stringent quality standards.
Mr Stevenson emphasised the need for a premium price for malting barley, adding that “farmers must be recognised and paid for their efforts” in adopting green production techniques, as sustainability is becoming an increasing focus in the supply chain.
He also noted challenges around wheat imports, stating that while Scotland cannot meet total demand, “the lack of support for Scottish-grown produce is disheartening”.
Mr Stevenson called for a greater emphasis on Scottish provenance and high-quality grain, particularly in the whisky industry.
NFUS launches 2025 intentions survey
NFU Scotland is urging all farming and crofting members to complete its 2025 Intentions Survey, which will support its ongoing parliamentary lobbying efforts.
Now in its third year, the survey has become vital in tracking business changes and informing policy discussions.
This year’s survey includes additional questions on farm and croft size to assist in shaping responses to the Scottish government’s Land Reform Bill.
NFUS head of policy, Gemma Cooper, stressed that the survey is crucial for building a robust evidence base to ensure policymakers understand the needs of farmers and crofters in Scotland.
Members have until 7 January 2025 to participate. You can fill in the survey online.
