New Capital Grant - Future Farming Investment Scheme
The Scottish Government recently announced details of a new capital grant scheme, the Future Farming Investment Scheme (FFIS) which has an indicative funding budget of around £14 million for 2025. Applications opened on 14 July 2025.
FFIS is an upfront capital grant scheme designed to help farmers and crofters in Scotland improve the sustainability, efficiency, and resilience of their agricultural businesses. The funding is part of Scotland’s transition toward climate-smart farming and offers targeted financial support for on-farm investments that deliver efficiency improvements, environmental benefits, reduce emissions, and adapt to a changing climate.
Eligibility
FFIS is open to eligible agricultural businesses across Scotland and aims to encourage forward-looking improvements that align with Scottish Government’s vision for sustainable, low carbon, profitable agriculture. Agricultural contractors and equine businesses are not eligible.
FFIS is a competitive scheme. Priority will be given to applications that deliver the best outcomes of the scheme, and to new entrants, young farmers, small and island based agricultural businesses, tenants, organically certified businesses, investments in EID equipment and water efficiency.
Funding
The maximum that can be applied for depends on the total area of eligible agricultural land (excluding common grazing shares) declared on your Single Application Form (SAF). There is no minimum amount of support that you can apply for.
Examples of Eligible Investments
Only capital investment that delivers on at least one of the following scheme objectives will be supported.
- Improve business efficiency and sustainability
- Protect, restore or enhance the environment
- Reduce greenhouse gas emissions and/or
- Mitigate the effect of climate change.
Below are examples of eligible investments:
Capital investments must be retained in agricultural use by your business for a period of at least six years from the date of the offer of grant.
Below are examples of ineligible investments and expenditure:
To help with knowing what you can and can’t apply for, the Scottish Government FFIS team have compiled an online A-Z list of items that have already been approved for grant aid. The list will be revised on a Monday and Wednesday each week with new items being shown in red text. If an item you wish to purchase is not listed and you are unsure of its eligibility, please send the details to FFIS@gov.scot
Application Process
The application window will open on 14 July 2025 and close on 22 August 2025.
Applications are made online via the ‘Manage Applications and Claims Portal’ which can be accessed from the FFIS guidance page on Rural Payment and Services.
To apply, you will need to be registered for funding with SGRPID, have an active Rural Payments and Services account, and have an up-to-date preferred communication email address on Rural Payments and Services.
The application process involves answering a series of questions about your business and the planned investment and is expected to take no more than 15 minutes to complete. Note: you will not be able to save your application and return to it later.
If your application is approved SGRPID will issue an offer of grant contract and once accepted they will pay you the grant to allow the investments to be made. Once items have been purchased, invoices will then need to be provided to show how much the investment cost, bank statement showing the payment and geo-tagged photographs to show the investment is on your farm/croft.
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 visit ruralpayments.org.
If you need support with your application, please contact your local SAC Consulting office.
5 Top Tips
- Fully read the scheme guidance.
- Decide what capital investment would help you achieve the schemes objectives.
- Ensure you have an up-to-date email address on Rural Payments and Services.
- Submit your application by 22 August 2025.
- Provide evidence that you have carried out the work within nine months of the date of the offer of grant letter.
Mary-Jane Lawrie, Senior Agricultural Consultant, Mary-Jane@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 Unearthed News on 16/07/2025
