Scottish Rural Development Programme 2014-2020: Evaluation of Capital Grant Schemes – Main Report
This report presents findings from an independent evaluation of three capital grant schemes funded through the Scottish Rural Development Programme (SRDP) 2014-2020.
5. Crofting Agricultural Grant Scheme
Summary overview
The CAGS predates the SRDP 2014-2020 and continued to be funded during the latest programme period. Further, the scheme continues to invite applications from crofters based in the Highlands and Islands and is now solely funded by SG as a legacy scheme.
The scheme provides grants to crofters towards the costs of a range of agricultural operations to allow them to improve their crofts and encourage business sustainability – for example, for the construction or improvement of agricultural buildings. CAGS, unlike the other two capital grant schemes, provided funding for the establishment of Common Grazings Committees, albeit demand for this type of activity was limited.
The original CAGS EU and SG budget of £14 million was modified several times over the delivery period – the final budget allocation of circa £15.9 million represents an increase of 14% on the original budget allocation. SG provided an additional budget allocation for the CAGS between 2020-2021 and 2023-2024 of circa £15.4 million. This reflects the continued popularity of, and need for, this type of support among crofters.
Circa £14.6 million expenditure was achieved by the CAGS by December 2023 utilising EU and SG funding. Additional national funds totalling circa £11.1 million were used to fully fund some CAGS activity in the latter years of the SRDP programme period. Total expenditure on the CAGS was circa £25.8 million.
Almost 6,600 applications were submitted for the CAGS over the delivery period, and annual applications peaked during the COVID-19 years. CAGS continues to be a very popular grant scheme - the average number of applications submitted on an annual basis was 824. Almost three-quarters (74%) of applications submitted for the CAGS were approved, while the remainder were either rejected or withdrawn.
Additional data provided by SG for CAGS applications approved from 2019 onwards shows that: around two-thirds were completed by male applicants; almost all were for projects in LFA (99%); and one-quarter were from young farmers. A vast majority of total project costs and grant awards were small in scale – less than £10,000 (79% and 85% respectively), and in the main less than £5,000.
The most common type of CAGS project supported between 2019 and 2023 was the planting of shelter belts and the provision of fences, hedges, walls, gates, or stock grids. This was followed by the: erection or improvement of agricultural buildings, and shelters for the temporary housing and sheltering of out-wintered livestock; and provision or improvement of equipment for the handling and treatment of livestock.
Introduction
This chapter provides an overview of the CAGS and is based on a review of information and data provided by SG.
Overview of CAGS
The CAGS provides grants to crofters towards the costs of a range of agricultural operations to allow them to improve their crofts and encourage business sustainability. For example, funding can be used for capital projects (such as the construction or improvement of agricultural buildings) and for the establishment of Common Grazings Committees,[7] which is responsible for managing and maintaining common grazing, and is elected by crofters who use it.
Much of the workings of the CAGS is similar to the NECGS and SFGS as outlined in Chapter 3. This includes:
- grant thresholds.
- what funding could be used for and what it could cover.
- intervention rates.
- the application and appraisal process.
- the claims process.
- ability to request an extension to project delivery.
- sample of inspections.
The CAGS is different to the other two capital grant schemes in that:
- it has been part of the SRDP since 2009.
- it is only open to crofters.
- it provides funding towards the establishment of properly constituted Common Grazings Committees.
The most recent CAGS opened in 2015 - it is still open to applications and funded by SG as a legacy scheme.
Eligibility
The CAGS is open to a range of crofters, including:
- croft tenants.
- owner-occupier crofters.
- sub-tenants of crofts.
- groups made up of croft tenants, owner-occupier crofters, and sub-tenants of crofts.
- Common Grazing Committees properly constituted under regulation by the Crofting Commission.
Additionally, crofters who have shares in a common grazing that is not regulated may qualify for monetary support for establishing a properly constituted committee.
Budget allocation
The original CAGS EU and SG budget of £14 million was modified several times over the delivery period – both downwards and upwards. The final budget allocation of circa £15.9 million represents an increase of circa £2 million (+14%) on the original budget allocation, see Table 5.1.
| Original budget | Final budget | Change | Percentage change |
|---|---|---|---|
| £14,000,000 | £15,959,721 | +£1,959,721 | +14% |
Source: Scottish Government.
Note: CAGS opened in 2015. Some 2014 expenditure was legacy spend from the previous iteration of the scheme.
Further, SG provided an additional budget allocation for the CAGS between 2020-2021 and 2023-2024 - circa £15.4 million.[8]
Expenditure
Circa £14.6 million expenditure was achieved by the CAGS by December 2023 utilising EU and SG funding, Table 5.2.
Further, additional national funds (SG monies) totalling circa £11.1 million were used to fully fund some CAGS activity in the latter years of the scheme, Table 5.3.
| Calendar year | EU funds | Scottish Government funds | Total |
|---|---|---|---|
| 2014 | £558,355 | £614,084 | £1,172,439 |
| 2015 | £533,206 | £935,684 | £1,468,891 |
| 2016 | £566,423 | £993,973 | £1,560,396 |
| 2017 | £970,516 | £1,525,643 | £2,496,159 |
| 2018 | £1,159,299 | £1,399,862 | £2,559,161 |
| 2019 | £1,653,437 | £1,996,535 | £3,649,972 |
| 2020 | £844,253 | £779,311 | £1,623,564 |
| 2021 | £260,361 | £240,334 | £500,695 |
| 2022 | £395,158 | £364,761 | £759,920 |
| 2023 | £24,773 | £22,868 | £47,641 |
| Total | £6,407,429 | £8,258,970 | £14,666,398 |
Source: Scottish Government.
Note: CAGS opened in 2015. Some 2014 expenditure was legacy spend from the previous iteration of the scheme.
| Calendar year | Scottish Government funds |
|---|---|
| 2020 | £1,508,746 |
| 2021 | £3,275,596 |
| 2022 | £3,268,305 |
| 2023 | £3,085,553 |
| Total | £11,138,200 |
Source: Scottish Government
Total expenditure on the CAGS was therefore £25.8 million with much of the funding coming from SG, see Table 5.4.
| Calendar year | EU funds | Scottish Government funds | Total |
|---|---|---|---|
| 2014-2023 | £6,407,429 | £19,397,170 | £25,804,599 |
Source: Scottish Government.
Note: CAGS opened in 2015. Some 2014 expenditure was legacy spend from the previous iteration of the scheme.
Applications submitted and approvals
Almost 6,600 applications were submitted for the CAGS over the eight-year delivery period, see Table 5.5. The number of applications submitted fluctuated over the delivery period and interestingly peaked in the COVID-19 years.
CAGS continues to be a very popular grant scheme - the average number of applications submitted on an annual basis was high at 824 applications.
| Year | Number of applications submitted | Number of applications approved | Proportion of applications approved |
|---|---|---|---|
| 2015-2016 | 645 | 270 | 42% |
| 2016-2017 | 778 | 665 | 85% |
| 2017-2018 | 765 | 654 | 85% |
| 2018-2019 | 895 | 677 | 76% |
| 2019-2020 | 988 | 748 | 76% |
| 2020-2021 | 1,089 | 797 | 73% |
| 2021-2022 | 740 | 534 | 72% |
| 2022-2023 | 695 | 512 | 74% |
| Total | 6,595 | 4,857 | 74% |
Source: Scottish Government.
Almost three-quarters of applications submitted for the CAGS were approved (74% or 4,857). This means that over one-quarter (26%) of CAGS applications were rejected or withdrawn.
The approval rate of applications was lowest in the first year (42%) – it increased in subsequent years and continued to fluctuate. The average number of CAGS applications approved on an annual basis was 607.
Approximately 50% of approved applications were for unique ‘businesses’ and approximately 60% recipients received one grant[9] - there has been a good level of repeat custom for CAGS.
Over £25 million of CAGS funding was approved, see Table 5.6.
| Year | Grant funding approved | Percentage of total grant funding approved |
|---|---|---|
| 2015-2016 | £1,025,303 | 4% |
| 2016-2017 | £3,285,101 | 13% |
| 2017-2018 | £3,037,672 | 12% |
| 2018-2019 | £3,567,519 | 14% |
| 2019-2020 | £3,745,340 | 15% |
| 2020-2021 | £3,987,008 | 16% |
| 2021-2022 | £3,307,315 | 13% |
| 2022-2023 | £3,198,522 | 13% |
| Total | £25,153,780 | 100% |
Source: Scottish Government.
Note: data presented in this chapter from this point on is based on a separate dataset provided by SG for the CAGS and is for illustrative purposes only. This dataset relates to applications approved from 2019 onwards and not for the whole delivery period. There were many data gaps, the number/value of approved projects does not match exactly with the data presented above, and it was not possible to provide wider analysis for the grant scheme’s delivery period as a whole. The data may not be representative of the total population of grant recipients.
Projects authorised to proceed
The vast majority of applications approved (2019 onwards) received authorisation to proceed in the same year that the application was submitted, see Table 5.7.
Similar to the other capital grant schemes, CAGS grant recipients could request an extension to the original 12 month delivery period.
Unlike the other schemes, CAGS remains open to applications (and projects are funded using domestic funds).
| Year approved application received | AtP in 2019 | AtP in 2020 | AtP in 2021 | AtP in 2022 | AtP in 2023 | AtP in 2024 |
|---|---|---|---|---|---|---|
| 2019 | 82% | 18% | ||||
| 2020 | 86% | 13% | 1% | |||
| 2021 | 85% | 15% | ||||
| 2022 | 82% | 18% | ||||
| 2023 | 97% | 3% |
Source: Scottish Government.
N=3,117 (2019-2022 approved applications data).
N=3,116 for start year (2019-2022 approved applications data – one missing entry).
Project costs and grant award size
Points to note on project costs and grant awards from the data provided on CAGS applications approved from 2019 onwards (see Tables 5.8 and 5.9) includes that:
- circa £17.1 million was awarded to approved projects - this represents 67% of the total project costs.[10]
- a vast majority of total project costs and grant awards were small in scale – less than £10,000 (79% and 85% respectively), and in the main less than £5,000.
- there was limited demand among individual crofters for the maximum award size (£25,000) – 110 applications were approved at this level (3% of total awards made over this period).
- there were limited, if any, grant awards made to constituted groups of small crofters (that is awards greater than £25,000) - to SG’s knowledge, these types of groups do not exist in any significant number.
| Range | Total project costs – Number | Total project costs – Percentage | Grant award size – Number | Grant award size - Percentage |
|---|---|---|---|---|
| Up to £5,000 | 1,753 | 56% | 2192 | 70% |
| £5,001 and £10,000 | 704 | 23% | 463 | 15% |
| £10,001 and £15,000 | 305 | 10% | 213 | 7% |
| £15,002 and £20,000 | 259 | 8% | 234 | 8% |
| £20,000+ | 86 | 3% | 10 | 0.3% |
Source: Scottish Government.
N=3,117 (2019-2022 approved applications data).
Values rounded to nearest £10.
| Range | Total project costs | Grant award size |
|---|---|---|
| Total | £25,530,150 | £17,170,310 |
| Minimum | £50 | £30 |
| Maximum | £156,250 | £125,000 |
| Average | £8,190 | £5,510 |
Source: Scottish Government.
N=3,117 (2019-2022 approved applications data).
Values rounded to nearest £10.
Project type
The CAGS has funded a variety of projects, including the erection or improvement of agricultural buildings and shelters for out-wintered livestock, and works associated with agricultural buildings (including yards, hard standings and silos), investment in land management, arterial and field drainage, and provision or improvement of equipment for the handling and treatment of livestock.
The most common type of CAGS project supported between 2019 and 2023 was the planting of shelter belts and the provision of fences, hedges, walls, gates, or stock grids (42%). This was followed by:
- erection or improvement of agricultural buildings, and shelters for the temporary housing and sheltering of out-wintered livestock (18%).
- provision or improvement of equipment for the handling and treatment of livestock (10%).
Taken together, these project types represented the majority of projects implemented, see Table 5.10.
The number of approved projects over this period which were towards the establishment of a properly constituted common grazings committee was suppressed (and therefore limited). The likely reason for the low uptake is because the support (£500) is to engage a consultant to help establish the committee, rather than towards the costs of hiring a hall, adverts, etc.
| Project type | Number | Percentage |
|---|---|---|
| Planting of shelter belts and the provision of fences, hedges, walls, gates or stock grids | 1,294 | 42% |
| Erection or improvement of agricultural buildings, and shelters for the temporary housing and sheltering of out-wintered livestock | 556 | 18% |
| Provision or improvement of equipment for the handling and treatment of livestock | 311 | 10% |
| Investment in land management, including the initial grassland improvement works for the restoration of degraded land and the control of bracken | 171 | 6% |
| All other forms of general drainage including under drainage, hill drainage and ditching | 164 | 5% |
| Works associated with agricultural building, including yards, hard-standings, dungsteads, and silos (excluding grain silos) | 135 | 4% |
| Provision or improvement of facilities for the organised feeding of out-wintered livestock, including permanently fixed troughs and feed barriers, and associated concrete bases | 124 | 4% |
| Provision of electrical equipment | 109 | 4% |
| Provision or improvement of access tracks to land improvement areas, roads, bridges, culverts or boat slips | 109 | 4% |
| Field drainage | 99 | 3% |
| Provision or improvement of amenities, including water supplies, mains electricity connections or electricity generators | 77 | 2% |
| Slurry stores | * | 0% |
| Assistance of up to £500 towards the establishment of a properly constituted common grazings committee (funding for cooperation not capital funding) | * | 0% |
Source: Scottish Government.
N=3,109 (2019-2022 approved applications data – eight missing responses).
* Data supressed due to number less than five.
Multiple response question in application form where applicants could select more than one option and all that applied. Percentages may total more than 100% as a result.
Geography
Not all area offices dealt with CAGS.[11] Among the area offices in the Highlands and Islands that do approve applications for CAGS, it was highest in Stornoway and Thurso, followed by Portree, Golspie, Lerwick, and Benbecula.
Application type
Some data on CAGS applications approved between 2019 and 2022 by application type was suppressed. The main points to note from the data analysis include that:
- almost all applications approved over this period were in LFA (3,098, 99%) - most of the remainder were in NLFA (18, 1%).[12]
- one-quarter of approved applications were from young farmers (764, 25%).
- around one-quarter of approved CAGS applications over this period were for young farmers, crofters who would be head of holding within five years, or both – overall, and by LFA and by NLFA.
Gender of applicant
Around two-thirds of CAGS applications approved between 2019 and 2023 were completed by male applicants, while one-fifth were completed by females, see Table 5.11.
| Gender | Number | Percentage |
|---|---|---|
| Male | 2,126 | 68% |
| Female | 621 | 20% |
| Non-individual | 370 | 12% |
Source: Scottish Government.
N=3,117 (2019-2022 approved applications data).
Project monitoring data
Monitoring information was sparse. With the exception of financial claim data and on-farm inspections on at least 5% of claims (as EC law required) no other monitoring data was available post project completion for the CAGS.
Contact
Email: socialresearch@gov.scot
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