Future Farming Investment Scheme

The Scottish Government has launched a new capital grant scheme – the Future Farming Investment Scheme (FFIS).

It offers upfront funding of up to 100% of the capital investment costs for agricultural businesses to help improve environmental performance and overall business efficiency.

A key aspect of the grant funding is that the planned capital investment/s must deliver at least one of the schemes four objectives and expected outcomes: 

• To improve business efficiency and sustainability. 

• To protect, restore or enhance the environment. 

• To reduce greenhouse gas emissions. 

• To mitigate the effect of climate change. 

While the scheme has a £14 million budget, the scheme is competitive and that applicants may not receive the funding they apply for, and that they cannot use the grant to purchase capital items linked to contracting activities. 

Mairi Gougeon, Cabinet Secretary for Rural Affairs, Land Reform and Islands said:

“Scotland invests more than £600 million a year in agriculture through reformed direct payments, Voluntary Coupled Support and Less Favoured Area Support Scheme – all in stark contrast to elsewhere in the UK.

“I am pleased to be able to confirm that, having worked with so many partners in its development, the Future Farming Investment Scheme will open on 14 July. The 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.

“The Scottish Government recognises the importance of small suckler cow herds in some of our most remote and fragile areas. These cows deliver for biodiversity, landscapes, they help to sustain people and deliver socio-economic benefits, so from the 2026 scheme, farms claiming for 10 calves or fewer will receive a derogation from the calving-interval condition.

“By working together, we have secured a flexible support policy through the Agriculture and Rural Communities Act, ensuring the industry continues to benefit from reformed direct support. We are driving down emissions, improving productivity and supporting the next generation.”

The maximum level of support businesses can apply for will be based on the total area of eligible agricultural land (excluding common grazing shares) that was declared on their SAF (Single Application Form) on 15 May this year.

Only one application is allowed per agricultural business per funding round and there is no minimum amount of support that can be applied for. However, another differing element of this scheme is that the Scottish Government intend to prioritise the way in which they allocate grant funding in order to deliver the best outcomes for the scheme. Priority will therefore be given to: 

• New entrants. 

• Young farmers. 

• Small agricultural businesses. 

• Tenants. 

• Island-based agricultural businesses. 

• Organically registered and certified businesses. 

• Grant requests for investments in electronic identification (EID) equipment and investments in water efficiency. 

Following an Offer of Grant, farmers and crofters will have nine months to purchase and/or carry out the investment/s and to provide evidence of carrying out their investment to SGRPID. In addition to which, capital investments must be retained for a period of at least six years from the date the Offer of Grant was made.  

To make the process of knowing what applicants can and can’t apply for easier, the Scottish Government FFIS team have compiled an online A-Z list of items that have already been approved for grant aid.

To access this list, please click on this link: A-Z eligible and not eligible capital items. The list will be revised on a Monday and Wednesday each week with new items being shown in red text. If an item is not listed and applicants are unsure of its eligibility, they can send the details to FFIS@gov.scot  for clarification.

The application window will open on 14 July 2025 and close on 22 August 2025.

For further guidance of who is eligible, how to apply online and the evidence you will be required to provide if you are awarded a grant, please click on this link: Future Farm Investment Scheme full guidance.