Nature Restoration Fund Returns: A Timely Opportunity for Scotland’s Dairy Sector

16 July 2025

Scotland’s Nature Restoration Fund (NRF) officially reopened for applications in June 2025, offering fresh opportunities for land managers, including those in the dairy sector, to engage in meaningful biodiversity and habitat enhancement projects.

Established to support transformative nature projects across the country, the NRF is once again inviting proposals that restore and protect habitats, improve biodiversity, and tackle climate change. Traditionally seen as more relevant to conservation bodies and extensive landowners, the fund is increasingly recognising the role of more intensive agricultural sectors — including dairy — in delivering tangible environmental benefits.

What is the NRF

Administered by NatureScot and funded by the Scottish Government, the NRF supports capital projects that align with key national environmental priorities. These include:

Habitat and species restoration

Freshwater restoration

Coastal and marine initiatives

Control of invasive and non-native species

Enhancing nature in and around the urban environment

Funding is available for both large-scale, collaborative landscape projects and smaller, site-specific improvements. Crucially, the 2025 round retains flexibility for farms to apply directly or as part of a partnership. A continuation of this funding will ensure that action for nature can be taken and supported through to 2027.

Why dairy matters to nature restoration

The dairy sector is often overlooked in discussions about nature restoration, perceived as too intensive or incompatible with conservation goals. However, this narrative is increasingly outdated. Many dairy farmers are already implementing practices that support biodiversity — from rotational grazing and field margin management to tree planting and watercourse buffering. Many milk buyers have moved towards initiatives to support sustainable land management and by extension nature conservation, from the uptake of regenerative agricultural practices to carbon auditing and biodiversity baselining.

The NRF offers an opportunity to spotlight and support these efforts. With targeted funding, dairy farmers can:

Restore field edges and hedgerows to improve pollinator corridors

Establish small wetlands or ponds to aid drainage and wildlife

Enhance riparian zones, reducing nutrient runoff and boosting aquatic biodiversity

Introduce silvopastoral systems to improve resilience and habitat diversity

A sector ready to lead

Far from being passive observers, dairy producers have shown growing interest in sustainable farming methods that enhance both productivity and environmental outcomes. By engaging with the NRF, Scotland’s dairy sector can challenge misconceptions and demonstrate its active role in shaping a nature-positive future.

As climate change intensifies and market expectations evolve, access to schemes like the NRF not only supports compliance but strengthens the sector’s license to operate. Participating in nature restoration isn't just good for wildlife — it’s good business.

Get involved

Applications for the NRF are now open, with deadlines varying depending on project scale and category. Interested farmers are encouraged to consult the NatureScot website or contact their local Farm Advisory Service consultant for tailored advice. Now is the time for the dairy sector to step forward — not just as food producers, but as stewards of Scotland’s rich natural heritage. The scheme has a rolling deadline for applications; an application must be submitted with an Expression of Interest and the next deadline for this is Monday 8 September at noon. For more information please see the following link:

Nature Restoration Fund - How to Apply | NatureScot

Alexander Pirie, alexander.pirie@sac.co.uk