Policy rethink

New three region model discussed for future farm payments

A working dog guides sheep across a frosty Achnahaird field at dawn
A working dog guides sheep across a frosty Achnahaird field at dawn
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The National Sheep Association ( NSA ) Scotland has indicated its support in principle for a revised three‑region approach to farm support payments, as discussions continue around Scotland’s agricultural reform.

NSA Scotland confirmed it has not been directly involved in Agriculture Reform Implementation Oversight Board (ARIOB) discussions on the region review, and therefore has not taken part in detailed decision‑making to date. However, based on options currently being referenced and previous sector discussions, including through the Food and Agriculture Stakeholder Taskforce (FAST), it understands that the option aiming to join BPS regions two and three, while splitting region one, has attracted the most support.

This option would retain a three‑region system but reorganise how land is classified, merging Regions 2 and 3, while splitting Region 1 into separate categories to allow more targeted support for higher‑quality land. The Region 1 split would create one zone covering temporary grassland and arable land and another with permanent grassland only.

In principle, the organisation said this option appears to offer the greatest flexibility and policy alignment while still recognising Scotland’s diverse land capability.

For sheep producers, particularly those operating in marginal and upland areas, NSA Scotland highlighted the importance of retaining a region‑based approach that can more accurately reflect land constraints.

However, it stressed that any future system must continue to deliver targeted support for active livestock farming and must not increase complexity or administrative burden for producers.

The association also said that future support for disadvantaged areas will need to be clearly defined, properly funded, and accessible to those it is intended to help.

How this would impact the Scottish Upland Sheep Support Scheme (SUSSS) is still unclear. The scheme has an annual budget of up to £7 million and supports more than 1000 hill sheep farmers and crofters farming in Payment Region 3 rough grazing areas. The Scottish Government has committed to funding SUSSS until at least 2026, but its longer‑term future has remained uncertain.

Some of the options on the table suggest scrapping the SUSSS, while others suggest expanding the schemes area to include region two farms and crofts. Another suggestion being discussed is for livestock stocking rates to be used to trigger the level of payment awarded per hectare on non‑ arable land.

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