Scottish government set to unveil £14m capital grants scheme

The Scottish government will unveil a new £14m Future Farming Investment Scheme (FFIS) at the Royal Highland Show 2025, aimed at helping farmers and crofters invest in sustainable, climate-friendly practices.

The capital grant scheme is part of the government’s wider “New Deal for Agriculture” and it will open for applications later this year. A further £20m may be made available next year.

It will support a wide range of on-farm investments, including technology, infrastructure, and equipment that boost efficiency while delivering environmental benefits.

See also: New NFU Scotland top team faces key farming challenges

Priority areas include water resource management, electronic cattle identification (bovine EID), and support for young farmers and new entrants.

It is understood some projects could benefit from up to 100% intervention, a shift from typical funding levels of 40-50%. A further £20m may be made available next year.

Scottish rural affairs secretary Mairi Gougeon said: “Since the first minister announced it earlier this year, we have been working hard to develop the Future Farming Investment Scheme, which pledged at least £14m for flexible grants.

“This has involved discussions with the sector to look at how the grants would be of greatest benefit to farmers, crofters and land managers. I look forward to providing more detail on this in the coming weeks.”

NFUS positive

NFU Scotland’s director of policy Jonnie Hall welcomed the move, describing it as “a very open, flexible and simplified approach to capital funding”.

He said the union had been closely involved in shaping the scheme’s direction and criteria.

“It’s not a huge amount of money, so expectations need managing,” Mr Hall added. “But it looks really positive – it could be a blueprint for future schemes.”