Scottish Rural Development Programme 2014-2020: ex-post evaluation - annex A scheme summary report

12. New Entrants Capital Grant Scheme

Scheme description

The New Entrants Capital Grant Scheme (NECGS) provided capital grants for people new to farming to make improvements to their agricultural business and to help promote sustainable development (for example, the construction or upgrading of agricultural buildings). The capital grant scheme was open to farmers and crofters who had been head of an agricultural business for a maximum of five years prior to applying for support.

The NECGS became operational in 2015 and closed to new applications in August 2018 due to available EU and SG match-funding being fully committed.

Public expenditure

The NECGS was programmed to contribute to Priority 2 (Enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and the sustainable management of forests), and to FA 2A.

A summary of the public expenditure achieved by the NECGS under the SRDP 2014-2020 is provided in Table 12.1.

Source: Scottish Government, Annual Implementation Report 2023.

Performance indicators

A summary of the outcomes achieved by the NECGS is provided in Table 12.2. Final co-financed payments were made to beneficiaries in 2021.

Source: Scottish Government, Annual Implementation Report 2023.

Scheme evaluation

The NECGS was subject to a joint evaluation alongside the CAGS and SFGS. The Evaluation of Capital Grant Schemes was undertaken by EKOS Ltd and published in August 2024. See CAGS (Chapter 4) for more information on scope of the evaluation and study methodology.

What worked well and/or less well

The aspects of the NECGS which worked well and less well are generally captured under lessons learned – see CAGS.

The evaluation noted that the NECGS was over-subscribed, and in part this reflects the grant scheme was part of a wider SG offer for new entrants.

In relation to the NECGS stakeholders felt that most approved applications were from those who had taken over control of an existing business and not from those who were starting an agricultural business for the first time. And that many NECGS applicants (and grant recipients) appeared to have restructured long-established (often large) farming businesses or changed partnership arrangements to become eligible for grant support. While some felt that this was not a significant issue or concern (succession planning argument) others felt that the NECGS had possibly missed the mark in terms of supporting its intended audience.

Lessons learned

See lessons learned under CAGS.

Current status of the scheme

The NECGS was not in the transition programme as the budget was exhausted. A range of support for new entrants continues to be funded by SG. These largely focus on training, advice, knowledge transfer, freeing up public land, and a policy group governing these outputs and thinking creatively about existing and future new entrant support.