Business and Policy August 2025 – Policy Brief

Future Farming Investment Scheme

Please note that the Future Farming Investment Scheme (FFIS) closes for applications on Friday 22^nd of August 2025. This scheme differs from previous capital grant schemes, in that, it offers upfront funding covering up to 100% of the capital investment cost to ensure all agricultural businesses have access to capital support to help improve environmental performance and overall business efficiency. Grant funding rates are linked to farm size from up to £5,000 for a farm/croft with <30 ha, £10,000 for >30-150ha, and up to £20,000 for businesses with >150 ha.

Further guidance of who is eligible, what items are eligible for grant, how to apply online and the evidence you will be required to provide if you are awarded a grant, are available here.

 

Community Right to Buy

Following on from the first legislation introduced under the Land Reform (Scotland) Act 2003 and subsequently amended and extended under the Community Empowerment (Scotland) Act 2015 and the Land Reform (Scotland) Act 2016, a total of  268 ‘Right to Buy’ applications have been received from community groups seeking to acquire their own assets, with two-thirds of these (175) approved by Scottish Ministers.

Under the current legislation, in simple terms, crofting, rural and urban communities have the right to register their interest to buy land, and once their interest is registered, it grants the community body the right to buy the land when the landowner wishes to sell it.  However, given the fact that, in reality, the Right to Buy process can be complicated and demanding, to facilitate community ownership, the Scottish Government are seeking views on how to simplify the process.

The consultation is open to all members of the public until the 5^th of October 2025. The Scottish Government is particularly keen to hear from those who have interacted with the rights in the past, whether as a seller, buyer, practitioner or interested party. For more information and to access the consultation questions, please click here. A Gaelic version is also available.

 

Knowledge Transfer and Innovation Fund

The Knowledge Transfer and Innovation Fund (KTIF) has opened for applications. This Scottish Government Fund is aimed at promoting skills development, improving business practice, resource efficiency, and boosting environmental performance and sustainability.

The Knowledge Transfer and Innovation Fund has two separate aims:

1. Knowledge Transfer Projects aimed at promoting skills development and knowledge transfer in the primary agricultural sector. Funding is available to organisations to deliver vocational training, coaching, workshops, courses, and farm visits designed to develop skills, transfer knowledge and encourage knowledge exchange.
2. Innovation Projects: aimed at delivering innovative on-the-ground improvements in agricultural competitiveness, resource efficiency, environmental performance, and sustainability. Operational groups can be made up of different individuals or organisations within agriculture who are working collaboratively including partnerships between farmers, crofters, land managers, Non-Governmental Organisations, advisers, and businesses working on the ground.

Grant funding for individual projects will be capped at £200,000 per year. Knowledge Transfer project applications are eligible for 75% funding under KTIF; and Innovation projects are eligible for 100% funding. The closing date for applications is the 7^th of September 2025. Multi-year funding agreements will be considered, subject to budgetary confirmation each financial year of the proposed project.

For more information on the Knowledge Transfer and Innovation Fund including information about operational groups and collaboration, please click here.

 

Peatland Training Fund

As important carbon stores, peatlands are critical in Scotland’s efforts to combat climate change. They also play a vital role in flood regulation and water quality as well as supporting nationally and internationally important biodiversity.

As part of a budget commitment of £250 million, funded by the Scottish Government and delivered in partnership with NatureScot, Scottish Water and the National Park Authorities, Peatland ACTION is a national programme aimed at restoring ~ 250,000 ha of degraded peatlands which are crucial for biodiversity and carbon storage.

A new fund to support the development of workers across the expanding peatland restoration sector in Scotland has been launched. The Peatland Training Fund will provide financial support to over-16s living in Scotland who are looking to develop skills to support their peatland career. It is also open to people already working in peatland restoration looking to enhance their skills through additional training.

In general, 50% grant funding is available up to a maximum of £1,000 per application for Peatland Training Fund-badged courses. However, the Peatland Training Fund will also consider applications for courses that cost over £1,000.

Training courses covered by the funding include AVT driving, 360^o tracked driving and off road/4×4 training. For more information on the courses available through Skills Hub Scotland, please click on this link: Peatland Training Fund – Skills Hub Scotland

Please note that, funding will not be granted for:

• activities that are deemed to be a statutory requirement for the individual’s continuing employment.
• training which the Fund Review Panel considers that an employer both could and should provide.

For more information on the funding available and the eligibility criteria, please click on this link: Peatland Training Fund | Lantra – Scotland

 

Next Generation Practical Training Fund

The Next Generation Practical Training Fund has been established by Scottish Government with an aim to support those relatively new to agriculture, by providing the opportunity for skills development and training on the practicalities of agricultural practice as well as wider business and sustainability skills, in order to help them secure, sustain and progress their careers.

In terms of eligibility, the Next Generation Practical Training Fund aims to support those who have started on their agricultural path within the past five years and who are undergoing or have just completed formal sector-related education. To allow for young people being involved in agriculture from an early age, the five-year rule only applies once the applicant has turned 18.

The aims of the fund are:

• To encourage more new and prospective next generation and new entrants to uptake training courses, with a particular focus on climate change adaptation and mitigation practices, and biodiversity/habitats improvement, but also, other equally important areas such as health and safety; equipment training; business efficiency and resilience.
• To enable those less financially able to access key training; support; and equal opportunities for those looking for jobs in the sector.
• To encourage a more flexible and individual approach to training support.
• To support employability and a sustainable rural workforce.

Courses eligible for funding can be found on the Skills Hub Scotland website. For more information, please click on this link Next Generation Practical Training Fund – Skills Hub Scotland. 

100% funding is available for training up to the value of £500 per course. However, you can apply for training that costs more than £500, but you will have to fully explain the value of the training to you or your business in your application form.

For more information on the funding available and the eligibility criteria, please click on this link: Next Generation Practical Training Fund

 

Agricultural Household Survey

The Scottish Government has launched its Agricultural Household Survey which is being sent out to Agricultural Households throughout Scotland by email or by post. The aim of the survey is to help the Scottish Government with their decision-making processes in relation to agricultural, crofting and rural policies.

Farmers, crofters, and household members are therefore being asked to please fill out their survey to help the Scottish Government to make well informed decisions with regards future policy.

 

Christine Beaton, christine.beaton@sac.co.uk

 

Date	Action
22 August 25	Future Farming Investment Scheme Closes
31 August 25	Start of the cutting period for hedges
1 September 25	Scottish Upland Support Scheme Application Window