Farmers and crofters across the Highlands and Islands are set to benefit from a new £14.25 million funding programme designed to help agricultural businesses invest in equipment, modernise operations and improve environmental sustainability.

The next round of the Future Farming Investment Scheme will open for applications in winter 2026, with at least 725 farming and crofting businesses expected to receive grants of up to £20,000.

The funding will support a wide range of improvements, including enhancing soil quality, creating hedgerows and upgrading livestock management infrastructure.

Businesses based in the Highlands and Islands will qualify for enhanced support, with grants covering up to 60 per cent of eligible costs.

New entrants to farming will be eligible for funding of up to 80 per cent, while projects delivering environmental and nature benefits may receive funding covering up to 100 per cent of eligible costs.

First Minister John Swinney said:

“Farmers and crofters play a vital role in producing food, supporting jobs 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.

“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 Scottish Government said the latest round of funding has been shaped by feedback from farmers and crofters and forms part of its wider work on the forthcoming Rural Renewal Bill.

A full list of eligible items will be published before applications open later this year.