The reality of inflationary effects on Scottish agricultural support budgets

A short opinion piece for February 2023 edition of Farm North East (editor Eddie Gillanders). As the journal is print only we have permission to publish the article electronically. The article looks at the long term impact that inflation has had on eroding the buying power the Scottish Government have through agricultural support payments. With Defra price index suggesting that between October 2020 and October 2022 all agricultural inputs rose 48% on average, with output prices up by an average of 30%. In the last 20 years there has been significant decline in the input inflation adjusted budget allocation to agriculture. It is against this backdrop that the ongoing discussions of future agricultural support conditionality need framed. It is relatively easy for Governments to say they are maintaining budget levels, without considering the long-term declines in the purchasing power of that budget, particularly during this ‘agflation’ period.