Rural Support Plan (RSP) - Annex

Tier 3 – Elective

What will it do?

Tier Three will support action that creates and/or protects habitats or species or improves business sustainability. It will focus on funding targeted actions for climate change and nature restoration. This could be specific to a particular species or habitat, the creation of new agroforestry systems or woodlands, supporting conversion to alternative forms of agriculture such as organic production, encourage innovation and provide supply chain support.

What will it achieve?

The primary strategic role of Tier Three is to deliver climate and nature outcomes. Tier Three will primarily contribute to the following strategic outcomes:

Tier 3 principal strategic outcomes:

• Climate Change Mitigation and Adaptation
• Nature Restoration

In addition, Tier Three will support improvements in infrastructure and efficiency, particularly for crofters. Progress towards climate and nature outcomes are expected to have knock-on benefits for agricultural businesses and high-quality food production. Tier Three will also contribute to the following supporting outcomes:

Tier 3 supporting strategic outcomes:

• Enabling Thriving Rural Communities
• High Quality Food Production

It should be noted that principal and supporting outcomes are both important and this distinction reflects how resources are allocated within each Tier. These strategic outcomes will be used as the basis for the monitoring and evaluation of Tier Three and its associated schemes against the objectives set out in the ARC Act.

What has changed?

We will start off using existing schemes and make changes over time. Changes already introduced for the 2026/2027 financial year are:

• Future Farming Investment Scheme - capital grants to improve environmental performance in terms of climate and nature