A major new funding initiative, the £14 million Future Farming Investment Scheme, will open for applications in July 2025, offering Scottish farmers and crofters flexible capital grants to drive efficiency and support nature and climate-friendly practices.
Announced by Rural Affairs Secretary Mairi Gougeon at the Royal Highland Show in Edinburgh, the scheme is designed to prioritise support for new entrants, young farmers, small farms, and tenants.
The goal is to help the sector invest in modern, sustainable practices that enhance productivity while protecting Scotland’s natural environment.
Ms Gougeon highlighted Scotland’s commitment to agriculture, noting that the nation invests over £600 million annually in the sector through a range of support schemes, contrasting with approaches elsewhere in the UK.
She stated: “The Future Farming Investment Scheme will provide upfront payments of up to £20,000 at up to 100% grant rate and give people the freedom to choose the most appropriate capital investment to improve their business.”
How the Scheme Works
- Application Window: Opens 14 July 2025, closes 22 August 2025.
- Grant Amounts:
- Farms/crofts up to 30 hectares: up to £5,000
- 30.01–150 hectares: up to £10,000
- Over 150 hectares: up to £20,000
- Eligibility: One application per agricultural business per funding round. Previous participation in other grant schemes does not affect eligibility for the maximum grant.
- Process: Successful applicants will receive an Offer of Grant contract, followed by an upfront payment. Investments must be completed within nine months, with evidence of expenditure required. Failure to provide satisfactory evidence can result in repayment of the grant.
Investment Priorities and Additional Initiatives
The scheme encourages investments that improve business efficiency and support climate and nature-friendly farming. It is part of a broader push for sustainable agriculture in Scotland, which also includes a new Code of Practice on Sustainable and Regenerative Agriculture and a national LiDAR scanning programme to better understand and manage Scotland’s landscapes.
Looking Ahead
With a limited budget and a focus on reaching as many farmers and crofters as possible, applicants are advised to request only the amount necessary for their planned investments.
The Scottish Government’s new scheme represents a significant step towards a more sustainable and resilient agricultural sector, supporting both economic viability and environmental stewardship.
Applications for the Future Farming Investment Scheme open on 14 July 2025, marking an important opportunity for Scotland’s rural communities to invest in a greener future.
