Crofting Agricultural Grant Scheme (CAGS)

If you're a tenant, owner-occupier crofter, or sub-tenant crofter, you can make use of the Crofting Agricultural Grant Scheme (CAGS) to access grants. These grants can help you with the cost of a number of different operations you might be doing on the croft.

It can help you:

Reduce production costs
Improve land quality
Preserve or improve the natural environment
Raise hygiene conditions and animal welfare standards

This page will give you an overview of the ways CAGS can be harnessed, as well as some suggestions on how to get started.

1. Grant Rates

Grant rates under CAGS vary depending on the applicant’s circumstances and location:

Individual crofters are eligible for:

60% in LFAs

40% in non-LFAs

Individual crofters under the age of 41 and in business for fewer than five years are eligible for:

80% grant rate in Less Favoured Areas (LFAs)

60% grant rate in non-LFAs

Grazing committees may apply for:

80% in LFAs

The enhanced rates aim to support new entrants to crofting and collaborative projects that benefit the wider crofting community.

2. Eligible Work

Funding is available for a wide range of capital improvements, and can cover all aspects of the project, including:

Materials

Transportation of materials

Contractor costs

Own labour

Where Standard Costs apply, the grant amount covers all aspects of the project, including labour.

3. Eligible items include (but are not limited to):

Agricultural buildings

Hard-standings

Re-seeding

Slurry storage facilities

Drainage and ditching

Livestock feeding and handling equipment

Shelter belts

Fencing

Provision of power and water

Electrical equipment

Access tracks

Please note: applications for the replacement of existing assets will only be considered if the current asset is derelict—that is, no longer functional or capable of being repaired or maintained.

4. Allowance

Funding of up to £25,000 is available to individual crofters, and up to £125,000 for groups of crofters. To be eligible, applicants must be registered owner-occupiers or tenants (or official sub-tenants) and must live within 20 miles (32 km) of their croft.

Applicants are expected to demonstrate how the proposed improvements will:

Lower production costs

Improve product quality

Enhance the natural environment

Promote better hygiene

Improve animal welfare standards

Electrical equipment
Access tracks

5. Supporting Documentation and Approvals

Quotes and Standard Costs

For most items, two quotes are needed for work that costs less than £10,000, and three quotes are required for work that costs in excess of £10,000. New in 2025 is the introduction of ‘Standard Costs’, for standard sheds, hardstandings and fences – no quotes are required for these items.

All applications are assessed against a set of criteria, including:

The viability of the crofting business

The need for the proposed project

The sustainability of the project

Compliance with environmental, hygiene, and animal welfare regulations

For example, a new fence might exclude livestock, allowing an increase in silage production, which reduces the need for bought in feed, and increases liveweight gain.

Depending on the nature of the project, additional documentation may be required, such as:

Maps eg., to show drainage plans

Architectural drawings or plans e.g., for a new shed

Planning permission or Prior Notification for a shed

Environmental permits

In some cases, approval or consultation with relevant bodies may be necessary before applying or commencing work. These may include:

NatureScot

Scottish Environment Protection Agency (SEPA)

Forestry and Land Scotland

A local agricultural officer may also visit the croft to review and discuss the proposal in more detail.

For full guidance on the scheme, please visit:
Crofting Agricultural Grant Scheme (CAGS)