Business and Policy December 2025 – Policy Brief

Future Farming Investment Scheme – Update 

Following the announcement last month that the Scottish Government had increased the total grant funding under the new Future Farming Investment Scheme (FFIS) to £21.4 million; it was announced at AgriScot that funding will be made available for a further 102 applicants, mainly applicants from the islands and the Crofting Counties. 

Successful applicants have 14 days to accept the terms of the award, 9 months to carry out the capital investment/s, with grant payments being made within 30 days of a grant claim through the Manage Applications and Claims Portal, based on the submission of detailed evidence of the investment made.  This evidence must include: 

• An explanation of why an investment was made. 

• How it aligns with the scheme outcome. 

• The expected business benefits. 

• Date of purchase (which should be after the date on the grant letter). 

• The cost, supported by a supplier’s invoice. 

• Serial numbers of any equipment bought. 

• Proof of payment e.g. a bank statement that clearly links the purchase to the business named on the offer of grant letter. 

• A geotagged photo of the of the equipment, including the serial number. 

Failure to comply with these requirements may result in part or all the grant not being paid or subsequently recovered.  Please remember that SGRIPD may request to inspect the item up to 6 years after the Offer of Grant was issued. 

 

Land Reform Bill 

Following extensive debates and amendments, the Scottish Parliament has passed the Land Reform (Scotland) Bill.  The new bill aims to provide greater protections for tenant farmers, modernise how new small holdings are created and operated, helping new entrants and next generation farmers and crofters get access to land.  

Key Provisions of the Bill include: 

1. The modernisation of agricultural tenancy laws to support sustainable farming practices.  

2. Protecting tenants and small landholders, ensuring fair compensation if they are removed from their holdings.

3. To establish a new commissioner to oversee land and community issues, further supporting the aims of the bill. 

4. To prevent concentrated land ownership and promote community access to land.  Controversially, the Bill will give Ministers the power to split up landholdings of over 1,000 hectares when being sold, provided that it is in the public interest to do so.

5. Communities will receive advance notice of sales of large landholdings, giving them the opportunity to apply for a Right to Buy.  This aspect of the bill is intended to empower local communities and enhance their ability to manage land resources.  

The Land Reform (Scotland) Bill is split into two main parts:  

 Part 1: The management and sale of land linked to provisions affecting large land holdings, including land management, community engagement and the right to buy and transfer land. 

 Part 2: Leasing agricultural land linked to revisions to agricultural tenancy law, including rent reviews, compensation for improvements and the introduction of model terms for an environmental lease. 

While the Bill has been passed, it is not yet in force.  The implementation will occur in stages, with specific details to be outlined in secondary legislation.  A consultation about the powers of the Tenant Farming Commissioner and alternative options for dispute resolution will be launched shortly. 

 

Scotland’s Climate Change Plan through to 2040 

The Scottish Government has published draft plans mapping out Scotland's pathway towards net zero.  The draft Climate Change Plan to 2040 sets out actions designed to reduce Scotland's greenhouse gas emissions and to meet our first three carbon budgets, whilst supporting jobs, growth and community regeneration. 

Scotland is deemed to already be over halfway to net zero having reduced emissions by 51.3% since 1990 – the largest reduction in the UK and faster than the EU average, using comparable statistics. 

The new plan details over 150 policies and proposals building on this progress, including: 

• Increasing woodland creation so that by 2029/30 18,000 hectares are planted every year, with 21% woodland cover in Scotland by 2032. 

• Phasing out new diesel and petrol cars by 2030. 

• Increasing peatland restoration by 10% each year to 2030. 

• Setting a target to decarbonise building heat systems by 2045. 

A consultation on the Plan is now open and will run until 29 January 2026 

 

Consultation on Council Tax Reforms 

The Scottish Government and the Convention of Scottish Local Authorities (COSLA) are seeking views on the future of council tax in Scotland.  Council tax has remained unchanged since its introduction over 30 years ago.  The aim of the consultation is to build a consensus on reforms to council tax. 

The key areas under consideration include: 

1. Updating the market reference point (currently based on values as at 1991) to reflect current market values and modernise the tax base. 

1. Exploring approaches to revaluation, including localised revaluation where band thresholds could differ by council area to reflect local housing markets. 

1. Introducing options for new council tax bands at the top and bottom of the scale to ensure the system is more progressive and proportionate, or to smooth the differences between tax rates. 

1. Considering transitional measures such as phased implementation and deferral options to help households adjust to any changes, as well as reductions to support lower-income households. 

While historically, farmhouses were secondary in value to the land, modern farmhouses, especially when lotted well at sale, can achieve significant prices which could result in a higher banding if the Council Tax market reference point was updated to reflect current market values, especially if localised revaluation was introduced to reflect local housing markets.   

You can read To read the consultation paper here. The consultation period ends on the 30th of January 2026. 

 

QMS Cattle & Sheep Assurance Scheme Standards 
Quality Meat Scotland (QMS) has completed its review of the Cattle & Sheep Assurance Scheme Standards, with updated Standards coming into effect on 1 January 2026.  As the key focus of the latest review was to streamline and consolidate the information to simplify the process, the number of standards have been reduced by 15%.    

Key updates include new formatting for clarity, consolidation of animal medicine and food chain rules to remove duplication, clearer division of responsibilities between farmers and vets in health planning, and revised traceability requirements to prevent confusion. While biosecurity, animal welfare and responsible medicine use remain at the core.   

 

Relevant Scottish Government Publications 

Date	Publication
11th December 225	Cereal & Oil Seed Rape Harvest: Final Estimates

 

Key Dates

Date	Action
31st December 2025	Deadline for submission of water extraction annual date under GEAC 2
31st December 2025	End of 2025 BPS Year – All Cross Compliance conditions must be met until this date
31st December 2025	Completion date for 2025 Whole Farm Plans

 

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