Business and Policy March 2026 – Policy

Agri-Tourism Investment Scheme 

As highlighted in last month’s edition of Business and Policy News, the Scottish Government have launched a new £1 million capital grant scheme for the Agri-Tourism Sector.  The Agri-Tourism Investment Scheme (AIS) is designed to help agritourism businesses in Scotland to be financially sustainable, profitable, and resilient so they can play a key role in sustaining the future of Scottish agriculture. 

Please note that the Scheme application window will close at midnight on Friday the 13th of March 2026.   

The Scheme is competitive, with a maximum grant rate of 40% for capital investment costs.  However, as with the Future Farming Investment Scheme (FFIS), the Scottish Government will prioritise applications that are judged to deliver most against the objectives of the scheme. 

For further details of the Scheme and how to apply, please click on these links: 

For Info: FAS Website AIS 2026  To Apply: Rural Payments Website AIS 2026  

 

Agri-Environment Climate Scheme (AECS) 

The 2026 round of the Agri-Environment Climate Scheme is now open for applications.  For details of the 2026 Management Options and eligible Capital Items, please click on these links: 

• Management Options  

• Capital Items 

The closing date for applications for AECS, Stand-alone Irrigation Lagoons and AECS combined with Organics or Irrigation Lagoons in the same application is Saturday 20th June 2026, with the closing date for Organics alone being Friday the 31st of July 2026. 

Please note:  As part of an offer of AECS grant aid, businesses will be required to confirm when accepting their contract offer that, if they have employees, they pay at least the real Living Wage to all staff aged 16 and over (including apprentices) who are directly employed by their business.  This also applies to sub-contractors.  For more information, please click on this link: Fair Work First 

 

National Islands Plan  

The Scottish Government have announced that under their second National Islands Plan, alongside efforts to grow the economy and increase the number of people living on Scotland’s islands; island communities are set to benefit from improved housing and healthcare. 

The second National Islands Plan will deliver targeted actions across seven key themes, including committing to delivering more affordable homes, improving access to childcare, easier access to health and care services, helping islands move to clean energy, to protect their environment, and exploring permanent transport links – specifically bridges and tunnels to improve connectivity between Mull and the mainland, Barra and the Uists, and the Uists and Harris/Lewis. Further actions include an island scholarship pilot scheme for postgraduate students, and the promotion of Gaelic and island languages such as Orcadian and Shetlandic. 

To read the full National Islands Plan, please click on this link: National Islands Plan – gov.scot 

 

Securing homes in rural and island communities 

The Scottish Government have announced plans to develop a Rural and Island Housing Grant Scheme, with an indicative budget of up to £20 million over four years.  Designed to help with costs in rural and island communities, the scheme will enable people, including first-time buyers and families, to own affordable homes in the places they want to live.  Development of the Scheme will take place with rural and housing partners. 

The grant scheme will build on the delivery of over 12,000 affordable homes in rural and island communities between April 2016 and March 2024.  It will also complement existing support for the delivery of rural and island homes through the Affordable Housing Supply Programme and the Government’s broader support for low-cost home ownership through the  Rural and Island Housing Fund, which was recently extended to 2028. 

 

Upcoming Grant Funding for Farmers and Crofters 

Future Farm Investment Scheme 

The Scottish Government has announced a second round of the Future Farming Investment Scheme (FFIS), with a reported funding package of £14.25 million.   The Future Farm Investment Scheme will provide capital support to active farmers and crofters for the purchase of equipment to support efficiencies, and nature and climate objectives.  At the time of writing (end Feb 26), no further details have been released with regards specific scheme objectives and application dates. 

The Small Producer Pilot Fund 

The Scottish Government has announced the tripling of capital funding under the Small Producers Pilot Fund to £1.5 million The Small Producer Pilot Fund supports innovation, strengthens supply chains, and helps small producers the improve their skills and infrastructure.  At the time of writing (end Feb 26), no further details have been released with regards specific scheme objectives and application dates. 

The Sea Eagle Management Scheme 

The Scottish Government has announced £1 million of funding for the Sea Eagle Management Scheme.  The Sea Eagle Management Scheme was launched in 2015 to help farmers and crofters to manage and mitigate sea eagle impacts.  At the time of writing (end Feb 26), no further details have been released with regards specific scheme objectives and application dates. 

 

Lamb Castration and Tail Docking Consultation 

Defra have launched an online consultation linked to Lamb Welfare.  The consultation is on the proposed changes to castration and tail docking methods.   

Castration and tail docking are routinely carried out on lambs, with procedures typically carried out using the ‘rubber ring’ method without the use of anaesthesia or analgesia.  Rubber ring castration and tail docking cause significant acute and also chronic pain.  The Animal Welfare Committee (AWC), an independent, expert committee of Defra and the Scottish and Welsh Governments, has considered the implications of castration and tail docking for the welfare of lambs.  It has produced three reports on this topic, in 1994, in 2008, and most recently in 2022, which provided recommendations to improve lamb welfare.   

In alignment with AWC’s recommendations and scientific evidence, Defra are proposing to increase the accessibility of new methods that have been shown to be: 

• less detrimental to welfare of lambs than traditional methods,  

• require the use of pain relief for methods that are known to cause significant pain,  

• set restrictions on who can carry out each method, how, and when.  

Defra’s proposals seek to ensure that, where castration and tail docking is carried out, pain caused to the animals by these procedures is appropriately minimised.    

To take part in the consultation, please click on this link Lamb Welfare: Consultation.  The consultation window closes on Monday 9th of March 2026. 

 

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

 

Relevant Scottish Government Publications and Consultations 

Consultations	Closing Date
Accelerating Home-building in Scotland	30th April 2026
Scottish Law Commission’s Report on Section 53 of the Title Conditions (Scotland) Act 2003	15th May 2026
Onshore electricity generation: increasing the threshold for applications under The Electricity Act	27th March 2026

Publications	Closing Date
Short-term lets: regulation information - gov.scot	25th February 2026
Supporting Scotland's transition - land use and agriculture: consultation analysis report - gov.scot	25th February 2026
Farm Business Income Survey 2024-25 (Link not yet available)	27th March 2026
Planning for Water Scarcity: Practical guidance	23rd February 2026

 

Key Dates

Date	Action
2nd April 26	Deadline for RPID to receive an application to transfer Basic Payment Scheme entitlements with an effective date of 15 May this year