£14m Scottish capital grants fund to open in July

The Scottish government has launched the Future Farming Investment Scheme (FFIS), a £14m fund providing flexible capital support to farmers, prioritising young farmers, small holdings, and tenants.

Rural affairs secretary Mairi Gougeon unveiled the scheme at the QMS breakfast briefing at the Royal Highland Show on Thursday, promising upfront grants up to £20,000 at 100% grant rate to help farmers invest in efficiency, nature, and climate-friendly practices.

“You’ve told me you need more flexibility and faster access to capital. We’ve listened,” Ms Gougeon said.

See also: Gougeon vows to protect livestock numbers in Scotland

Applications will open on 14 July and run through to 22 August, with guidance available now.

Eligible farmers must be registered with the Scottish government’s Rural Payments division and can apply online.

The scheme supports investments that improve business efficiency, reduce emissions, and enhance biodiversity, while excluding items such as tractors, sheds, and existing grant-funded projects.

The Scottish government aims to maximise funding use, especially for new entrants and small-scale farmers, signalling strong support for the sector’s next generation.

“The ultimate aim of it is really to be as flexible as possible.

“Individual businesses will know what is best for their business – for example, what particular equipment they are going to need,” Ms Gougeon stressed.

With a further £26m of capital funding planned for next year, FFIS is a key step in Scotland’s strategy to build a resilient, climate-conscious farming future.

Scotland invests more than £600m a year in agriculture through reformed direct payments, Voluntary Coupled Support and the Less Favoured Area Support Scheme.

Further announcements

Ms Gougeon confirmed that a three-year programme of national LiDAR scanning is under way to provide a detailed 3D baseline map of Scotland to help better understand the landscape and plan for the future.

A new Code of Practice on Sustainable and Regenerative Agriculture has also been published.

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