Business and Policy July 2025 – Policy Brief

Future Farming Investment Scheme  

The Scottish Government has launched a new capital grant scheme – the Future Farming Investment Scheme (FFIS). It offers upfront funding of up to 100% of the capital investment costs for agricultural businesses to help improve environmental performance and overall business efficiency.

A key aspect to note when considering applying for FFIS grant funding is that the planned capital investment/s must deliver at least one of the schemes four objectives and expected outcomes: 

• To improve business efficiency and sustainability. 

• To protect, restore or enhance the environment. 

• To reduce greenhouse gas emissions. 

• To mitigate the effect of climate change. 

While the scheme has a £14 million budget, please note that this scheme is competitive and that you may not receive the funding you apply for, and that you cannot use the grant to purchase capital items linked to contracting activities. 

The maximum level of support businesses can apply for will be based on the total area of eligible agricultural land (excluding common grazing shares) that was declared on their SAF (Single Application Form) on 15 May this year.

 

Area of farm/croft	Maximum Grant that can be applied for
< 30 ha	£5,000
> 30.01 ha - 150 ha	£10,000
> 150 ha	£20,000

Only one application is allowed per agricultural business/Business Reference Number (BRN) per funding round. There is no minimum amount of support that you can apply for. However, another differing element of this scheme is that the Scottish Government intend to prioritise the way in which they allocate grant funding in order to deliver the best outcomes for the scheme. Priority will be given to: 

• New entrants. 

• Young farmers. 

• Small agricultural businesses. 

• Tenants. 

• Island-based agricultural businesses. 

• Organically registered and certified businesses. 

• Grant requests for investments in electronic identification (EID) equipment and investments in water efficiency. 

Following an Offer of Grant, farmers and crofters will have nine months to purchase and/or carry out the investment/s and to provide evidence of carrying out their investment to SGRPID. In addition to which, capital investments must be retained for a period of at least six years from the date the Offer of Grant was made.  

To make the process of knowing what you can and can’t apply for easier, the Scottish Government FFIS team have compiled an online A-Z list of items that have already been approved for grant aid. To access this list, please click on this link: A-Z eligible and not eligible capital items. 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

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 click on this link: Future Farm Investment Scheme full guidance. 

 

Scottish Suckler Beef Support Scheme 

In recognition of the importance of the role that small suckler cow herds play in some of our most remote and fragile areas in terms of biodiversity, maintaining landscapes, and delivering socio-economic benefit, the Scottish Government have announced that for the 2026 Scheme year, businesses claiming for 10 calves or less will receive a derogation from the calving interval threshold of 410 days or less.   

 

Single Application Form Changes for 2026 

Enhanced Greening – Ecological Focus Areas 

To help support farmers and crofters to produce food sustainably, the Scottish Government have announced changes to the Greening rules for 2026.  From 1 January 2026, if you have more than 15 hectares of arable land, you will need to manage Ecological Focus Areas (EFAs) for climatic and environmental benefit. However, not all EFA options require active management from the start of the year.  

For 2026, the following previous scheme exemption rules no longer apply where: 

• More than 75% of your arable land is temporary grass, herbaceous forage, fallow or leguminous crops. 

• More than 75% of your total land is temporary grass or permanent grass or herbaceous forage OR  

• You only have temporary grassland which is defined as arable under the scheme guidance. 

In simple terms, for 2026, if you have more than 15 hectares of arable land, including temporary grassland, you must manage 5% of your arable land as an EFA. However, you will only need to retain a map detailing your EFA Locations and Areas for inspection purposes; you no longer need to submit a map along with your Single Application Form.  

For more information of the specific changes to the new regulations regarding EFA fallow, green & ground cover, field margins, catch & nitrogen fixing crops, hedges and establishment & harvesting date conditionality, visit the Rural Payments website: The Future of Agricultural Support - Enhanced Greening.  

While the full details of changes for 2027 onwards are still to be announced, the Scottish Government are considering  the option to increase the arable EFA requirement to 7% and to introduce a mandatory PGRS Ecologically Focused Area requirement with associated EFA options. 

Whole Farm Plan 

For 2026, as per 2025, if you want to receive support under the Basic Payment Scheme (BPS), you will have to have completed at least two of the five Whole Farm Plan audits: 

• Carbon Audit. 

• Soil Analysis. 

• Animal Health and Welfare Plan. 

• Integrated Pest Management Plan. 

• Biodiversity Audit. 

However, please note, you only need to carry out the ones that are relevant to your agricultural activities. For advice on each plan/audit see our Farming for the Future webpage. 

 

Scottish Government Bills Update 

Muirburn Licencing Scheme 

Under the Wildlife Management and Muirburn (Scotland) Bill, the Scottish Government have announced that the muirburn licencing scheme will take effect on 1 January 2026.  This will give all those who need to survey peat depths time to do so over the summer and autumn.  

While NatureScot are developing an online application process which is due to go live this summer, the NatureScot website currently provides both written and video guidance on the information that you will need to provide when applying for a new muirburn licence: 

• details of the area(s) you wish to burn. 

• training evidence. 

• confirmation you will comply with the Muirburn Code. 

• peat depth survey data (optional, depending on the area and licensable purpose). 

Please Note: When the new licence scheme is launched, it will become an offence to carry out muirburn in Scotland without a licence. 

Crofting and Scottish Land Court Bill 

The Crofting and Scottish Land Court Bill is currently at Stage 1 of the Parliamentary process.  Part 1 of the Bill proposes amendments to the  Crofters (Scotland) Act 1993  and the Crofting Reform (Scotland) Act 2010 and introduces changes to the enforcement of crofters’ duties, the powers of the Crofting Commission, common grazings, and the Crofting Register. 

Part 2 of the Bill proposes to amalgamate the Scottish Land Court and the Lands Tribunal for Scotland to create one cohesive body, with the Scottish Land Court retaining the statutory requirement for a Gaelic speaking member. 

To access the Explanatory Note for the Bill, please click on this link.  

 

Bluetongue (BTV) Virus Update 

From 1 July 2025, all of England will be a BTV-3 Restricted Zone (RZ).  Farmers will need a licence to move animals out of the Restricted Zone.  

If you want to move animals from a BTV-3 Restricted Zone to Scotland, you need a movement licence issued by APHA which confirms the animals have: 

• a valid pre-movement test (at your expense), or 

• have been vaccinated with the Boehringer Bultavo-3 vaccine (for cattle only). 

• have no clinical symptoms. 

Sheep cannot move to Scotland without a negative BTV-3 pre-movement test from the National Reference Laboratory (Pirbright), even if they're vaccinated.  

For further information, please click on this link. To apply for a movement licence, please click on this link.

 

Key Dates to Note

Date	Action
14 July 25	Future Farming Investment Scheme opens for applications.  Closing date 22 August 2025
15 July 25	End of management period for EFA fallow
1 Aug 25	End of management period for EFA nitrogen fixing crops

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