Agribusiness News February 2025 – Management Matters: How Whole Farm Plans will Affect Landlords

Landlords and the 2025 SAF Whole Farm Plan requirements

The Scottish Government have introduced the Whole Farm Plan as a condition of the Basic Payment Scheme from 2025 onwards.  All businesses that claim, including Landlords under ‘Alternative Practice’ (AP), need to have in place a minimum of two of the following activities:

• Carbon audit
• Soil analysis of Region 1 land
• Animal health and welfare plan (AH&W)
• Integrated pest management plan (IPMP)
• Biodiversity audit

Carbon Audit

As all businesses that claim BPS require an audit to have been carried out by May 2028 at the latest; Landlords will also have to comply.  However, the audit will be limited as to what it can contain as audits usually include data on land production, livestock, feed, purchased bedding, and fuel and electricity use.  Landlords can undertake an audit themselves online using a carbon calculator tool, or a consultant can be instructed to prepare the audit.

Soil analysis

All Region 1 land that receives fertiliser or manure that is seasonally let will be the responsibility of the landlord to test by 2028.  Agricultural merchants and advisors can assist with taking and analysing soils.

AH&W and IPM Plans

If claiming Alternative Practice, as it is assumed that an Animal Health & Welfare plan will not be relevant; landlords will be required to undertake an IPMP. This can be done online annually and covers the use of plant protection products such as herbicides, pesticides and insecticides.

Biodiversity Audit

A Habitat Map of the land is required to be submitted to SGRPID by 2028 and updated at least every 5 years thereafter.  At a minimum, the audit requires identification of land cover, such as grassland, cropped land and woodland.  The maps can be submitted digitally through Rural Payments portal or the upcoming Nature Scot portal or can be done by hand and forwarded to your local SGRPID office.

Further details and conditions on these Whole Farm Plan activities can be found on the Rural Payments website.

While Alternative Practice claimants may be able to achieve some of the Whole Farm Plan activities; for some, it may prove challenging and costly to achieve all of the ones relevant to their business in the coming years.

Tenant claiming BPS and Entitlements

As an Alternative Practice claimant, if you do not want to undertake the above activities by 2028 you may want to consider offering to your tenant the opportunity to claim on the land.  To do this, they would need entitlements, which can be leased to the tenant for a period rather than sold, if that’s the preferred option.  A review of the rent can then be conducted to reflect this change.  An amendment to any grazing leases or tenancy agreements may also be required.

If you wish to pursue this option, please note that any paperwork for transfers of entitlements must be submitted to SGRIPD by the 2^nd April to allow the tenant to claim for the 2025 Basic Payment Scheme.

Future for Alternative Practice claims

Looking past 2028, the Agricultural Reform route is looking to deliver a vision that delivers high quality food production, climate consideration and nature restoration.

As the new tiered payment system that is gradually being introduced is going to make it more challenging to claim Alternative Practice on SAFs; it may be worthwhile in the coming months to have a chat with an advisor to see what route is best for Landlords to prepare for the future.

Jennifer Galloway, Jennifer.Galloway@sac.co.uk