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Tier 2 will deliver Enhanced support payment which is designed to be a universally accessible payment that supplements Base.

Funding will also be made available through Tier 2 for a replacement for Less Favoured Areas Support Scheme (LFASS), where people are farming and crofting in the most marginal and challenging of circumstances. We are working with stakeholders on how best to deliver this type of support under the new Framework.

Enhanced has the clear purpose of incentivising and supporting agricultural businesses to undertake best practices and/or actions that actively improve nature and climate outcomes that are consistent with the transition towards sustainable and regenerative farming. Many of these practices and actions will improve business efficiency and productivity.

Enhanced will use levers to reward behaviours, practices and measures aligned to this aim, which are broad enough to allow all type of agricultural businesses to take part while delivering against the overarching objectives of the Vision.

(a) To date, just over £51 Million has been awarded through the Nature Restoration Fund (NRF). This includes just over £32 Million awarded through the NRF competitive strand, just over £1.3 Million through NRF-funded Scottish Marine Environmental Enhancement Fund (SMEEF) projects, and £18 Million provided directly to local authorities and National Parks, via the NRF Edinburgh Process strand, as of the end of the 2023-24 financial year.

(b) 220 projects have been offered competitive funding to date. This includes 192 projects through the NRF competitive strand and 28 NRF-funded SMEEF projects. (i) 162 were terrestrial or freshwater projects (ii) 30 were coastal and marine projects (plus the 28 NRF-funded SMEEF projects).

Additionally, local authorities and National Parks have supported further projects directly through their allocation from the NRF Edinburgh Process strand.

(c) 119 separate applicants have been offered funding from the NRF competitive strand or NRF-funded SMEEF projects. That does not include the 32 local authorities and 2 National Parks who have also benefitted from direct NRF funding, and will in turn have used their allocation to support projects led by other organisations (e.g. community groups, local charities).

(d) We do not hold information on the number of jobs created or posts funded by the NRF.

The Scottish Government has appointed an analyst to carry out an evaluation of the first three years of the Nature Restoration Fund. Work on this exercise began in August 2024, and the findings will be published in due course.

The Scottish Government remains committed to the approach set out in the Agricultural Reform Route Map. The proposed measures was not a final list but examples were published to highlight the broad types of actions that may be required in the future to access support. Future measures will be introduced over time where they best fit within the Future Support Framework.

The Agricultural Route Map states that from 2025 the support framework will be aimed at delivering against the following five outcomes with at least half of all funding targeted towards outcomes for biodiversity gain and climate mitigation and adaption:

• High Quality Food Production - the primary food production sector is a productive sector of the economy and ensures we meet more of our own food needs more sustainably
• Thriving Agricultural Businesses - profitable and resilient agricultural businesses support local livelihoods, supply chains and the wider rural economy
• Climate Change Mitigation and Adaptation - greenhouse gas emissions from the agricultural sector are reduced in line with the CCP, and the ability to adapt to climate change is increased
• Nature Restoration - there will be substantial regeneration in, and maintenance of, biodiversity, ecosystem, and soil health on agricultural land
• Support for a Just Transition

The current paying agency is performing well, making payments more quickly and stably than before. The existing system was built to deliver against the CAP and while we work to reform the support system we must also prioritise existing payment delivery to ensure no cliff edges. Regular maintenance of the system is required to protect the integrity and stability of existing payments and the Scottish Government must allocate sufficient budget to ensure continuation of that stability. However, these systems, whilst vital for maintain ongoing payments, are not designed to deliver the four tier support framework required for the Agricultural reform programme. Therefore, we are currently working on what capabilities and requirements will be needed in the future.

While we have no such plans given the important role that homes for mid-market rent play in the wider housing system, we will continue to work across the Scottish Government and with local and UK Government to respond to the housing emergency and to deliver on our target of 110,000 affordable homes by 2032 – of which at least 70% will be for social rent.

As set out in Programme for Government 2024-25 we are making a new long-term commitment of £100 million, to grow with institutional investment to at least £500 million, supporting the construction of around 2,800 mid-market rent homes by making public funds go further.

The Scottish Government publishes figures relating to the supply of affordable homes across Scotland, on a quarterly basis, which can be found online at: https://www.gov.scot/publications/housing-statistics-for-scotland-new-house-building/.

The following table provides a breakdown of mid-market rent homes delivered with Scottish Government funding in each local authority area between April 2019 and end March 2024. The figures include Registered Social Landlord mid-market rent and Council mid-market rent homes. The figures also include other mid-market rent homes delivered through programmes such as National Housing Trust, Local Affordable Rent Housing Trust, Places for People Capital MMR Initiative and Rural and Island Housing Funds.

Local authorities as strategic housing and planning authorities are responsible for assessing affordable housing needs in their area and setting out their investment priorities in their Strategic Housing Investment Plans (SHIPs). These plans set out planned proposals for affordable housing supply over a five year period, including homes for mid-market rent, and should be available on each local authority’s website.

The Scottish Government only holds development information relating to projects on site and does not hold information relating to projects in planning beyond projects outlined in SHIPs. It is worth noting that not all mid-market rent projects in planning would necessarily be delivered through the Affordable Housing Supply Programme (AHSP).

The following table provides a breakdown by local authority area of mid-market rent homes receiving funding through the AHSP which are currently on site. The figures include Registered Social Landlord mid-market rent and Council mid-market rent homes, and other mid-market rent homes through programmes such as Places for People Capital MMR Initiative and Rural and Island Housing Funds.

A phased transition approach to the new Future Support Framework is outlined in the Agriculture Reform Route Map. Tiers 1 and 2 are the tiers that most closely resemble the current Basic Payment Scheme and Greening payments and will receive at least 70% of the available budget. The announcement at February’s NFU Scotland Conference means that the majority of funding will remain open to the majority of farmers and crofters.

Announcements on the future budget split between Tier 1 and 2 will be provided in due course.