The Scottish government has announced £500,000 in capital grants for small producers in 2025–26, aiming to bolster crofters and rural businesses.
Under the Small Producers Pilot Fund, grants will help smaller farms, crofts, horticultural enterprises and local food producers invest in equipment, storage or processing facilities that strengthens their resilience and supports sustainable growth.
Announcing the funding, the Jim Fairlie MSP, Minister for Agriculture, said “small producers matter”, highlighting their vital contribution to “nature, climate, thriving communities, and sustainable food production”.
The Minister said it was “right that we support and invest in them… because of the unique benefits that only they bring”.
The funding comes at a pivotal time, with ministers under pressure to ensure smaller producers are not overlooked during agricultural reform and as rural businesses face rising costs and growing expectations on climate and nature delivery.
The scheme is being delivered in partnership with South of Scotland Enterprise and Highlands and Islands Enterprise, which will help administer support and work directly with eligible producers in their regions.
Fairlie said the £500,000 package would continue the government’s commitment to backing crofters and small rural businesses, enabling them to play a central role in delivering the Vision for Agriculture and sustaining vibrant rural communities.
The Minister added gratitude to both enterprise agencies “for their support and partnership… in making this delivery happen”.
The Scottish government says it “remains firmly committed” to empowering small producers and ensuring they have the investment needed to contribute to national economic, environmental and social goals.
Further details on eligibility criteria and the application process are expected to be published early in the new year.
