NFU Scotland pushes for capital grants funding rise

NFU Scotland president Andrew Connon has urged the Scottish government to raise the budget for the Future Farming Investment Scheme (FFIS) after unprecedented demand from farmers and crofters.

The FFIS, aimed at supporting capital investment in efficiency, environmental goals, and business resilience, received thousands of applications for the 2025-26 financial year – far exceeding the £14m allocated.

In a letter sent to rural affairs secretary Mairi Gougeon MSP, Mr Connon highlighted the oversubscription as evidence of the farming sector’s strong appetite for investment.

See also: Scottish government set to unveil £14m capital grants scheme

“The demand shows that Scottish farmers and crofters of all sizes, types and locations are ready to invest in their futures – not just for profitability, but to deliver on the Scottish government’s ambitions for climate, environment and resilience,” he said.

NFU Scotland (NFUS) is calling for the budget to be increased by at least £5m, reallocating funds from the food processing and marketing support scheme if necessary.

They also want part of the £26m set aside for 2026-27 brought forward to expand FFIS funding this year, with the remaining funds used for food sector grants.

Mr Connon praised the scheme’s simplicity and impact but warned, “unless the funding matches the demand, we risk losing momentum at a time when the industry is crying out for action”.

NFUS has requested a meeting with Ms Gougeon to discuss urgent funding solutions.

Eleanor Kay, senior policy adviser at Scottish Land and Estates, echoed the concerns.

She said: “We all said £14m was a paltry figure compared to the capital grants scheme offered in England.”

She added: “This was badged up as a future farming investment fund, but a £5,000 maximum individual claim for farms 30ha and below doesn’t stretch very far.”

Scottish government response

In response, Mairi Gougeon said FFIS received 7,584 applications, showing “strong sector demand.”

“I am happy to discuss the scheme with NFUS at our next meeting and will respond to the letter in due course,” she added.

“Any decision to increase the FFIS budget would need to be carefully weighed against other essential capital investment priorities and wider government commitments.”

She also warned that farmers that assessment of applications is delayed due to WTO compliance requirements but assured that processing will be expedited.