Rural Support Plan (RSP) - Annex

Crofting Agricultural Grant Scheme

Crofting Agricultural Grants Scheme - RP&S guidance

Description

Capital funding for crofters (individually or collectively) to make investments to their crofts including the construction or improvement of agricultural buildings or the establishment of Common Grazing Committees, up to a maximum of £25k for individuals and £125k for groups in a 2 year period

Purpose

The Scottish Government recognises the benefits of a diverse and resilient agricultural sector and supports this culturally, socially, and environmentally important activity that delivers real benefits towards its Vision for Agriculture. Crofting exists in areas of Scotland where agricultural costs are traditionally high. The scheme is designed to support and develop agricultural production on crofts, thereby sustaining the economic basis of crofting, helping to retain people in rural and island communities, whilst enhancing wildlife and the natural environment

Contribution to Strategic Outcomes

High Quality Food Production

• CAGS enables investment which improves production and reduces costs thereby improving the quality of food production.
• CAGS enables investment which can improve animal welfare.

Enabling Thriving Rural Communities

• CAGS enables investment in crofts, improving production and reducing costs, facilitating continued business viability and continued contribution to rural communities and the rural economy through population retention and the supply of high quality, nutritious, locally produced food.

Climate Change Mitigation and Adaptation

• CAGS enables investment in sustainable and regenerative agricultural practices.

Nature Restoration

• Crofting activities, which are low intensity, can support nature restoration and biodiversity. Preserving the natural environment is an objective of CAGS.

Method

Application

Key dates

Annual, application window - all year round until budget allocated, payment window - after work is completed and within 90 days of a valid claim being submitted

Eligibility

• You must occupy a croft as the owner-occupier crofter, tenant crofter, or sub-tenant (or a group of these) or be a Common Grazing Committee
• You must live within 20 miles of your croft
• You must be an eligible agricultural business meeting certain standards
• Your croft must be located in the crofting counties

Requirements

• You must not have received or applied for grant aid, for the project, from any other public source
• You must comply with the Scottish Government’s Fair Work First conditions for employees and sub-contractors
• You must adhere to statutory requirements, the conditions in your grant offer letter and scheme conditions
• The item must be eligible, and you must use the item for the approved agricultural purpose

Baseline payment information:

Budget circa £3.5M

No. of recipients circa 800 per annum

The scheme is currently undergoing modification following an internal review in 2024/25.