New capital grant scheme to open in Scotland
The Scottish Government has announced details of a £14m Future Farming Investment Scheme (FFIS) which opens for applications on 14 July.
The FFIS offers grants of up to 100% of the capital costs of eligible investments which are ones that either improve business efficiency and sustainability; protect and enhance the environment; reduce greenhouse gas emissions or mitigate the effects of climate change.
The maximum grant available will differ according to farm size, with larger farms (greater than 150 ha) being eligible to apply for up to £20,000.
However, priority for the funding will be given to new entrants, young farmers, small businesses and tenants.
Unlike its equivalent scheme in England (the Farming Equipment and Technology Fund), there will be no prescribed list of items to choose from.
Instead, farmers can choose the ‘most appropriate’ for their business, so long as it meets one of the objectives of the scheme.
Another critical difference is that the grants will be paid upfront, with farmers given nine months to spend it on the equipment they have chosen.
The guidance notes indicate the following sort of investments are likely to be eligible:
Livestock: Electronic identification ear tag readers, electronic livestock weighing equipment, microscopes for faecal egg counting.
Grassland: Grassland sward lifters, electric fencing systems for managing grazing, quad-mounted seed broadcaster.
Arable: Direct drills, camera guided inter row sprayer, variable rate controller for seed drills, sprayers and fertiliser spreaders.
Water efficiency: Water harvesting and filtering equipment, irrigation sensors, irrigation controller for rain guns.
Nature: Hedge/tree planting (including associated stock proof fencing and cactus guards but excluding labour costs), virtual fence – grazing collars, herb and legume rich seed mix where the seeding will support maintenance of land for at least five years.
Climate: Mobile or fixed slurry separators, low-emission slurry spreading equipment, slurry store covers.
The scheme will close for applications on 22 August 2025.
Stevie Whiteford, a farm consultant based in the Inverness office of Strutt & Parker, says:
“The flexibility offered by the FFIS is great – aside from a few listed no-go areas, you can pretty much purchase anything if it aligns with one of the scheme’s objectives. That said, this does mean that the scheme is likely to be heavily subscribed, so early preparation and being aware of how applications will be scored is key.
“My recommendation would be to use the time before the scheme opens on 14 July to assess if there are appropriate investments that not only meet the scheme’s aims, but also genuinely improve the efficiency or viability of your business.
“Once you have identified what you would like to purchase, you can check eligibility by emailing your local SGRPID area office or FFIS@gov.scot. It is important not to place an order until any funding is approved, but it would be sensible to get a quote that will cover up to nine months’ lead time now.”
Other announcements
Another announcement made at the Royal Highland Show, was a change in the rules for smaller businesses under the Scottish Suckler Beef Support Scheme.
For larger businesses, the 410-day (or less) calving interval – introduced on 1 January 2025 – will remain the same in 2026.
However, the Scottish Government has said it intends to establish a derogation from this requirement for any businesses claiming 10 calves or fewer in a scheme year.
Ministers have also unveiled a new Code of Practice on Sustainable and Regenerative Agriculture.
The Code has been written as a ‘guidance tool’ for farmers and crofters to highlight the types of regenerative actions they could adopt and the benefits that they might deliver to their business.
If you would like to discuss an application to the FFIS or any other issue facing your farming business, please contact Stevie Whiteford.
