NFU Scotland is calling on the Scottish Government to provide urgent clarity on when funding will be released under the Crofting Agricultural Grant Scheme (CAGS), as delays risk holding up vital investment projects for crofters and rural businesses.
CAGS provides important support to crofters looking to invest in the practical infrastructure needed to keep their businesses productive and resilient, including buildings, fencing, drainage, livestock handling facilities, and water and power supplies.
However, uncertainty around the release of funding is creating challenges for crofters who are ready to progress planned works. Many are unable to give contractors the go-ahead, leaving both crofting businesses and rural suppliers facing uncertainty over timescales and workloads.
NFU Scotland President Andrew Connon has written to the Scottish Government highlighting the impact of the delays and calling for greater certainty for applicants and the wider rural supply chain.
Mr Connon said: “CAGS is a vital scheme for many crofters across Scotland. These grants help businesses make essential improvements that can have a real impact on animal welfare, efficiency and the day-to-day running of a croft.
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“However, a grant scheme only works effectively when decisions and payments happen at the right pace. Delays can leave crofters unable to progress projects, contractors unable to plan workloads, and investment pushed further down the line.
“Forward planning is crucial for agricultural businesses, particularly when many capital works need to be completed within specific seasonal windows. We are urging the Scottish Government to provide clarity on when funding will be released so crofters and rural businesses can plan with confidence.”
CAGS investment also delivers benefits beyond individual crofts, supporting local contractors, builders, fencing specialists, electricians, suppliers and other rural businesses.
Crofters Committee Chair, Archie Macnab said "CAGS is a vital source of support for crofters, helping to fund practical improvements that strengthen businesses, improve animal welfare and build resilience.
"For many crofters, these investments are essential to maintaining and developing their businesses. Without timely funding approvals, opportunities to complete work during this year's construction season are being lost, with some projects now at risk of being pushed back until next year.
"Crofters need certainty. We are asking the Scottish Government to provide a clear timetable for releasing CAGS funding so applicants know where they stand and can move forward with confidence."