Scottish capital grants scheme receives £7m uplift

The Scottish government has announced an extra £7.4m for its Future Farming Investment Scheme (FFIS) after unprecedented demand from farmers and crofters, taking the total fund to £21.4m.

Rural affairs secretary Mairi Gougeon confirmed the increase during her address to the NFU Scotland autumn conference in Edinburgh on Thursday (23 October), describing the FFIS as “a cornerstone of Scotland’s sustainable agricultural transition”.

See also: NFU Scotland pushes for capital grants funding rise

Launched in July, the scheme offers flexible capital grants to help farmers invest in efficiency, innovation, and climate-friendly practises.

The FFIS attracted 7,584 applications before the August deadline – equivalent to £70m in demand. Applicants will learn if they have been successful by 31 October.

Ms Gougeon said the response “shows strong sector demand and clear ambition within Scottish agriculture to invest in climate, nature and productivity goals”.

Union delight

NFU Scotland (NFUS) president Andrew Connon welcomed the additonal £7.4m and said it came following the union urging ministers to expand the scheme after it was oversubscribed almost fivefold.

“The exceptional demand for the scheme shows that farmers and crofters are ready to invest in a more efficient, sustainable future – they just need the right support to do it,” he said.

“We thank the cabinet secretary for listening and recognising that ambition.”

Jonnie Hall © Philip Case/MAG

Jonnie Hall, NFUS director of policy, told Farmers Weekly: “We asked for more money – and we got it. Nobody else did that. It’s an increase of more than 50%, which means more people will benefit, though many will still miss out.”

He estimates about 2,500 applicants, or 30%, will receive funding in this round.

Mr Hall praised the scheme’s simplicity and focus: “It’s hit the right target – young farmers, new entrants, the Islands, and projects improving efficiency and water management. The process was like a breath of fresh air and a blueprint for future capital spending.”

Looking ahead, Mr Hall expects about £26m to be available under the FFIS for the 2026-27 financial year, pending confirmation in the Scottish Budget on 13 January next year.

“This is money being invested directly into Scottish agriculture – driving innovation, efficiency and productivity while delivering on climate and biodiversity goals,” he added.

Additional funding

NFUS also welcomed new funding for projects supporting innovation, data use, and farmer wellbeing, including continued backing for MyHerdStats, Farmstrong, and the latest Knowledge Transfer and Innovation Fund (KTIF) initiatives (see panel below).

The union unveiled its new policy strategy at the conference, outlining priorities for future agricultural support and a strong push for long-term investment in Scottish farming.