Funding Opportunities for Crofters - Crofting Agricultural Grant Scheme
The recent Future Farming Investment Scheme (FFIS) has clearly unlocked a desire for agricultural businesses to invest to improve the efficiency of their farming systems. If you were not successful in your FFIS application and are an eligible crofter, you could still apply for the Crofting Agricultural Grant Scheme (CAGS) for many items which were eligible with FFIS. In addition, recent changes mean that CAGS has a much easier application process. The CAGS scheme provides grants for crofters to make improvements to their crofts and help to sustain their businesses.
In March 2025 the Scottish Government simplified the process of applying for CAGS for several commonly applied for items such as stock fencing and agricultural steel frame buildings. The process for which you apply for those selected items no longer requires submitting quotes with your application, making applying for grants easier and grant decisions made quicker.
The scheme is administered by the Rural Payments and Inspections Division (RPID). CAGS has been available for many years and crofters have already benefited from over £30 million, which has been awarded from the scheme in the last 10 years. Funding is available for a wide range of capital improvements: materials, transportation of materials, contractor costs and own labour. The main purpose being to provide financial support to active crofters who seek to improve and develop their crofting activities with intended outcomes of:
- Reducing production costs
- Improving land quality
- Preserving or improving the natural environment
- Improving hygiene conditions and animal welfare standards
The simplified model means there is a standard cost applied to the specified items funding can be applied for. This covers all aspects of the proposed project. The items included and their standard cost rate are:
The list above is by no means the only eligible items available with CAGS support. Other items and improvement activities the scheme will support are drainage, livestock handling equipment, croft re-seeding, shelter belts, electrical equipment and slurry storage facilities. For those types of funding applications, the actual costs model still applies and applicants will need to produce quotes during the application process - two quotes are needed for work that costs less than £10,000, and three quotes are required for work that costs more than £10,000. This includes applications for open sided steel frame buildings and non-steel framed buildings.
There are different grant rates available, for individual crofters, young farmers, and groups. Grant rates are also applied depending on whether you live in a less favoured area or not. Current grant rates are:
Less Favoured Areas
- Individual applicants - 60% funding available. 80% funding available for applicants under the age of 41 (subject to meeting young farmer criteria).
- Group applicants (such as Common Grazings) – 80% funding available. 90% funding available where groups meet young farmer criteria.
Non-Less Favoured Areas
- Individual applicants – 40% funding available. 60% funding available for applicants under the age of 41 (subject to meeting young farmer criteria).
- Group applicants – 60% funding available. 80% funding available where groups meet young farmer criteria.
To give an example: an individual over the age of 41 residing in a Less Favoured Area, applying for 300m stock fencing - standard cost is 300 x £10.46 = £3,138. Applicant will be eligible for 60% of £3,138 = £1882.80 covered by CAGS.
The maximum grant available to an individual applicant is limited to £25,000 in a rolling two-year period. For group applicants, the limit is £125,000. For more information and full scheme guidance, visit ruralpayment.org.
CAGS funded village fank extension, at Upper Bayble, Isle of Lewis
Five Top Tips
- Check your eligibility: you must be an active crofter (tenant, sub-tenant, owner occupier) with a Business Registration Number (BRN).
- Ensure you have initial capital for your project: you will have to pay for your project in the first instance.
- Once you receive a contract offer, sign and return asap: wait for final go ahead before commencing your project.
- Make sure you have enough time to get your project completed and claim submitted: you have 12 months following contract approval.
- Don’t be put off: yes, the full scheme guidance is lengthy, but the application process is a lot simpler than you think. The scheme is there to benefit your business - take advantage of it.
For more information on CAGS and other schemes, arrange to speak to a consultant at your nearest SAC Consulting office.
Jane McPhee, Consultant, Jane.Mcphee@sac.co.uk
Unearthed is the exclusive SAC Consulting members' monthly newsletter. Unearthed offers insights and tips from our experts on what we think is in store for farming and crofting in the coming months in order to protect and enhance your business.
Posted by SAC Consulting on 12/11/2025
