FFIS second round opens after first-year criticism

First Minister John Swinney announced the second round of funding at the Turriff Show, confirming that successful 2025 applicants would remain eligible for further support.

At least 725 farming and crofting businesses will share £14.25 million through the next round, with grants of up to £20,000 available to support investment in equipment, infrastructure and sustainable farming practices.

First Minister John Swinney said the second FFIS round has been shaped by feedback from farmers and crofters (Image: Scottish Government)

The scheme will fund projects including improving soil quality, creating hedgerows, upgrading livestock management infrastructure and investing in technology designed to improve efficiency and reduce environmental impacts.

Enhanced support will remain available for new entrants, businesses based in the Highlands and Islands, and projects delivering environmental and nature benefits.

The First Minister expects the second round of the Future Farming Investment Scheme to open by November (Image: Scottish Government)

Mr Swinney said: “Farmers and crofters play a vital role in producing food, supporting jo

bs and caring for our natural environment. That is why we are doing everything we can to ensure rural Scotland and our food and drink sector continue to thrive.

“This funding will have far reaching benefits for agricultural businesses. It will help farmers and crofters invest in new equipment, modernise their operations and respond to the challenges posed by climate change, including increasingly frequent extreme weather events.

Scottish Crofting Federation CEO Donna Smith welcomed higher support rates for island businesses but said questions remain over how FFIS applications will be scored (Image: Eoghan Smith)

“The next round of this scheme has been shaped by feedback from farmers and crofters and reflects our commitment to supporting a competitive, sustainable and resilient agricultural sector.”

The First Minister said the scheme would be judged by its impact on farms rather than the number of grants awarded.

Discussing changes to FFIS, Mr Swinney said: "We want to make sure there is as much flexibility as possible. There will be a maximum limit of £20,000 for each applicant.

Speaking at the Turriff Show, John Swinney said the success of FFIS should be judged by the difference it makes on farms across Scotland (Image: Scottish Government)

"That means very small organisations are not disadvantaged, while larger organisations do not disproportionately have access to a significant sum of money.

"We also want to focus very much on what the projected outcome of the investment is, so that we maximise the positive impact on climate action, sustainability, productivity and profitability.

"The whole objective of the scheme is to make sure it creates a greater impact, rather than potentially lowering profitability."

John Swinney said applications would be assessed on how effectively proposed investments deliver the scheme's objectives (Image: Scottish Government)

The first FFIS round, launched at the Royal Highland Show in 2025 by then rural affairs secretary Mairi Gougeon, attracted significant interest.

A total of 7584 applications were received, with 1672 successful applicants and 5910 unsuccessful applications. The initial £14 million budget was later increased to more than £21 million to meet demand.

The high number of unsuccessful applications led to criticism from farming organisations and political representatives. Concerns were raised over the clarity of the application process, how applications were scored, whether priority groups such as crofters, tenant farmers and island businesses received sufficient support, and whether funding was distributed fairly across Scotland.

NFU Scotland president Andrew Connon welcomed confirmation of the next round of the Future Farming Investment Scheme but said farmers still need greater clarity (Image: Paul Watt)

The Scottish Government said many unsuccessful applications were linked to issues including ineligibility, incomplete information or failure to meet scheme requirements.

Mr Swinney said allowing previous successful applicants to return was intended to ensure funding was directed towards the strongest proposals.

He said: "It should be based on what are going to be the best propositions. What's going to make the biggest impact?

"A lot of farmers met all the criteria last year but were unsuccessful. I accept there will probably be more aspiration than there is money available to support it.

"I'm not sure I've ever had the experience of having a scheme with any other kind of characteristics. There will be more demand than we can meet, but we are putting resources in place to make this possible."

The First Minister said the scheme was expected to open towards winter, adding: "I think it's safe to say that I would expect it to be open by November."

Responding to the announcement, NFU Scotland welcomed confirmation that the next FFIS round will go ahead but said the months-long wait for details had left farmers and crofters facing unnecessary uncertainty.

NFU Scotland president Andrew Connon said: "It's encouraging to see the Scottish Government confirm both the timing and funding for the next round of the Future Farming Investment Scheme. This announcement has been many months in the making, and farmers and crofters have been waiting far too long for the certainty they need to plan investment in their businesses."

He said the first round had demonstrated farmers' willingness to invest in more productive and sustainable businesses, but also showed demand significantly exceeded the funding available.

The union said ministers must learn lessons from the first round, calling for clear guidance, a straightforward application process and greater transparency over how funding decisions are made to ensure applicants have confidence in the scheme.

Connon added: "The announcement answers one important question, but others remain. Farmers and crofters now need clarity on when applications will open, how quickly they will be assessed and when successful applicants will be able to begin investing."

He warned that demand for capital investment continued to outstrip the funding available, adding: "If Scottish agriculture is expected to deliver on food production, climate action, biodiversity and thriving rural communities, then long-term investment must match those ambitions."

The Scottish Crofting Federation (SCF) welcomed elements of the revised scheme, including the higher 60% intervention rate for island businesses and enhanced support for new entrants and environmental projects.

However, it said concerns remain over how applications will be assessed in practice after many crofters missed out in the first funding round despite belonging to multiple priority groups.

SCF chief executive Donna Smith said: "We urge the government to make the scheme equally accessible to all parts of the sector, including small businesses and grazing committees.

“We expect clear guidance to be issued for crofters, setting out which items are exclusively available under the FFIS route, which are exclusively available under CAGS, and which are available under both schemes. In any case, FFIS is not an alternative to CAGS, and current funding under CAGS must be maintained.”

The First Minister said agriculture remained ‘an integral part of the Scottish economy’ and a foundation of Scotland’s internationally recognised food and drink industry, adding that government had a responsibility to provide confidence through investment and support the sector through changing economic and environmental pressures.