The organisation warned UK Government that “continued pressure” from fuel and electricity prices risked undermining domestic food production. In a letter to the Prime Minister, NFU Scotland called for immediate measures to protect productive farm businesses alongside longer-term investment to make agriculture more energy resilient.
It also called for the current 6.48p per litre rebated fuel duty rate to be maintained beyond 31st December 2026, with no automatic return to higher duty rates while red diesel prices remain “exceptionally high”.
The organisation requested an agricultural fuel rebate threshold in order to provide temporary support when prices exceed an agreed level, and a Farm Energy Resilience Fund to help farmers invest in renewable energy generation, energy efficiency and energy storage.
NFU Scotland president Andrew Connon stated: “Food security is an important part of national security. We cannot leave domestic food production exposed to extreme volatility in the cost of the energy needed to produce that food. Red diesel and electricity are fundamental costs of agricultural production and the pressures facing farm businesses are significant and immediate.
“We are asking the Government to act on two fronts: protect productive farm businesses from exceptional energy costs now and help them become more energy efficient and resilient for the future. The current red diesel duty rate should be maintained beyond the end of December, with further temporary relief considered for as long as exceptional price pressures persist.”
“The Government should act now rather than wait for the consequences to emerge through reduced production.”
Connon continued: “At the same time, there is a real opportunity to help farms generate more of their own renewable energy, improve efficiency and reduce their reliance on purchased energy. Farms can also contribute to the UK’s wider energy security, but that means tackling barriers such as slow and expensive grid connections and ensuring businesses are properly rewarded for surplus electricity they export.
“The Government should act now rather than wait for the consequences to emerge through reduced production, unsustainable farm borrowing or further pressure on food prices.”
NFU Scotland has also called for agricultural businesses to have access to emergency energy cost support made available to other sectors, including consideration of targeted temporary assistance for electricity and gas used directly in food production.
NFU Scotland is now looking for the opportunity to discuss its proposals with UK Government Ministers and officials.
