Questions raised after farmers in Scotland lose out on funding

A Holyrood debate has exposed deep frustration over the Scottish government’s Future Farming Investment Scheme (FFIS), with MSPs from across parties questioning how funding was allocated and why so many farmers and crofters missed out.

The FFIS capital grant scheme offered up to 100% funding to help Scottish farmers and crofters invest in efficiency, new technology and climate and biodiversity improvements.

After it opened in July 2025, it attracted more than 7,500 applications – almost five times the original budget – prompting ministers to increase funding, allowing 1,672 applicants to receive their share of £21.4m. 

See also: Scottish farmers offered £21.4m in sustainability grants

The maximum grant for a farm was £20,000, but an average award of £12,793 was paid.

Opening the members’ business debate, Orkney Islands Liberal Democrat MSP Liam McArthur said there was “no doubt that the scheme was rushed in its development and poorly communicated” and that “it resulted in widespread anger and confusion among farmers and crofters across Scotland”.

He told the chamber on 22 January that it was “hard – indeed, I would say impossible – to sustain the argument that the FFIS did what it said on the tin”.

Mr McArthur highlighted the impact on island communities, noting that Orkney businesses received “less than 3.5% of the overall funding allocated” and Shetland “less than 2%”.

Quoting a constituent whose application was rejected, he said: “The results of the scheme belie its claim that it was targeting small islands.

“In the end, the whole application process turned out to be a waste of time for a small farm facing a lot of other challenges.”

SNP MSP Christine Grahame said the scheme was “an excellent initiative” but argued that greater transparency was needed, calling for “more clarity, more data breakdown and another look at the guidance”.

She noted that “42% of applications did not pass one or more eligibility or verification checks”.

Highlands and Islands Conservative MSP Douglas Ross questioned how applications were screened.

He said: “When a scheme attracts 7,582 applications and almost half of them are thrown out before they are even considered because they are deemed ineligible, something has gone wrong.”

‘Missed opportunity’

Labour MSP Mercedes Villalba said the scheme looked like “a missed opportunity”, arguing it had “failed to deliver for small farmers”.

Responding for the Scottish government, agriculture minister Jim Fairlie insisted that the FFIS “is a good thing” and said it had supported “1,750 farmers and crofters across Scotland”.

He rejected claims of regional bias, stating that “the outcomes reflected the strength of the planned investment rather than the geographical location”.

Mr Fairlie acknowledged disappointment among unsuccessful applicants but said lessons were being learned, adding: “We are listening carefully to the concerns that have been raised.”