Scotland's Land Use Strategy Annual Progress Report – 2024/2025

Actions taken towards sustainable land use between April 2024 and March 2025

Funding

Agri-Environment Scheme

The outcome of applications to the 2023 round of the Agri-Environment Climate Scheme (AECS) was announced in February 2024, with £27 million to be awarded to 517 businesses over the lifespan of the contracts which commenced from 2024/25. This funding supports land managers to undertake actions to enhance biodiversity on their holding, and to adapt to and mitigate against the impacts of climate change.

In addition, the Agri-Environment budget for 2024/25 was prioritised and set at a level that enabled all eligible applications, representing a record approval rate for the scheme.

Supports: Enclosed farmland and Semi-natural Land

Knowledge Transfer and Innovation Fund grants awarded

In October 2024 it was announced that projects to increase farming skills, tackle environmental impacts and enhance competitiveness in food production will share more than £300,000. The Knowledge Transfer and Innovation Fund supported projects that promote skills development or deliver improvements in business practice, resource efficiency, environmental performance and sustainability.

The projects supported include a skills development programme for staff working with livestock in Loch Lomond and the Trossachs National Park, a course to help crofters, and promoting learning about the benefits of calving intervals on the Isle of Bute.

Supports: Enclosed Farmland and Semi-natural Land

Crofting

To ensure the sustainability of our rural and island communities, the Scottish Government approves and provides crofting businesses with over £40 million each year, through various support mechanisms including the Croft House Grant, Crofting Agricultural Grant Scheme (CAGS), Cattle Improvement Scheme, Less-Favoured Area Support Scheme, Basic Payment Scheme and Greening, Forestry Grant Scheme and AECS. In 2024, 27 crofters and their families received funding of almost £810,000 from the Croft House Grant scheme towards the costs of house improvements and new houses. Of those awarded funding, 21 were island-based crofters and 12 of the grants were for the construction of new homes.

The CAGS provides grants towards the costs of a diverse range of agricultural operations. The CAGS is designed to aid and develop agricultural production on croft businesses, thereby supporting the economic basis of crofting and helping to retain people in rural and island communities. The funding also supports collective investments on common grazing land. In 2024, a total of almost £3.2 million was paid out, helping 508 crofters with their businesses.

2024 also saw agreement by the CAGS stakeholder group to move to a system of standard costs for agricultural buildings, fencing, and new roads and hardstandings. This change has been motivated by the fact that in some rural and island areas crofters find it difficult to source sufficient quotations for CAGS applications. The changes were formally introduced on 3 March 2025.

Together these schemes allow crofters to maximise the full potential of their crofts, generate economic activity and live and work in our rural and island crofting areas, thereby protecting the crofting system for future generations of crofters.

Supports: Semi-natural land

Forestry

In 2024/25 Scotland created 8,470 hectares of new forest or woodland, representing 54% of all UK new woodland creation. 5,300 hectares of that area is new native woodland, which surpasses the Scottish Government’s commitment of 4,000 hectares set out in the Programme for Government (PfG).

Despite leading the UK in woodland creation, Scotland fell short of its broader annual targets: 10,000 hectares under the PfG and 18,000 hectares under the Climate Change Plan for 2024/25. This shortfall is being attributed to budget reductions in the previous year, which limited the number of projects that could be supported.

Furthermore, around 30% of projects approved by Scottish Forestry—amounting to 2,800 hectares—did not proceed or were planted to compensate for woodlands removed for electricity infrastructure projects, which means they cannot count towards overall planting levels. Noticeable amongst the drop off of activity has been a reduction in the number of small-scale woodlands being planted by farmers or crofters, many of whom were affected by inflationary pressures that either delayed or halted progress. To help address inflation, Scottish Forestry will now allocate an additional £1 million in grant funding for smaller woodlands, aiming to encourage farmers and crofters to carry on with growing trees.

Supports: All landscapes

Peatland

In June 2024, the Scottish Government confirmed more than 10,000 hectares of damaged peatland had been restored in Scotland over the previous year, reducing harmful emissions and accelerating progress to net zero. The average rate of peatland restoration has doubled in the last two years. In 2023-24 we saw 10,360 hectares restored across 100 projects – the highest amount achieved in a single year.

Restoring degraded peatland is one of the most cost-effective ways we can reduce carbon emissions and fight climate change with additional benefits of reducing flooding risks and improving water quality and local biodiversity. The Scottish government has maintained its pledge of investing £250 million for the long-term restoration of damaged peatlands.

Supports: All landscapes

Nature Restoration Fund

Supporting Scotland’s local authorities to invest in nature is fundamental to achieving our national ambitions. Projects that restore and create new green and blue spaces bring people closer to nature and enhance the climate resilience of communities – delivering on our priorities for both nature and climate.

The Scottish Government remains firmly committed to tackling the twin crises of climate change and biodiversity loss and recognises the importance that the natural environment plays in all of our lives. 2024 saw in excess of £10 million being allocated to projects across Scotland from the Scottish Government’s Nature Restoration Fund. This brings the total invested by the Fund since its inception to nearly £40 million.

Supports: All landscapes

Regional food fund

In August 2024, Scottish food businesses, producers and groups were encouraged to apply for grants of up to £5,000 to promote and champion produce from their local area. This fifth iteration of Scotland’s Food and Drink Partnership’s Regional Food Fund continues to support regional food activity across Scotland.

Since 2018, the Scottish Government has provided over £770,000 to the fund, which has supported 167 collaborative projects, including food and drink tourism trails, festivals, new equipment and regional marketing campaigns.

Supports: All landscapes

Case Study: Peatland Restoration and Mentoring in Dumfries and Galloway

Peatland restoration work on Bellybought Hill, in Dumfries & Galloway, part of the Buccleuch Group began in early 2024, and covered 85 hectares. Funded through the Scottish Government’s Peatland ACTION programme, it was part of a wider programme of peatland restoration across all the group’s Scottish estates. This followed an in-depth ‘boots-on-the-ground’ survey of its deep peat areas. Since then it has developed an operational plan for the next five to ten years, of which Bellybought Hill was the third phase, with the aim of addressing the impact on biodiversity of the site’s dry peat.

The Estate worked with the team at the Crichton Carbon Centre (CCC), which is partly funded by Peatland ACTION, and opened up its restoration programme to those wanting hands-on experience of peatland restoration and designing.

Onsite staff have reported seeing more ground nesting birds at the previous two restoration sites, as well as hen harrier and merlin, and those involved are optimistic results will be the same here. In addition the staff reported better livestock health, with fewer lambs lost in drains and gullies, and improved grouse survival rates. Invertebrate numbers increased, providing the essential food for young chicks, including red grouse.

Finally, following the success of the mentoring scheme this work has helped inform contractors, designers and the Group, and further established the skills and approaches necessary for carrying out peatland restoration in the south of Scotland.