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

14. Small Farms Grant Scheme

Scheme description

Under the SRDP 2014-2020 the Small Farms Grant Scheme (SFGS) opened for applications in 2015 and closed to new applications in December 2022. The scheme provided capital grants to small farmers to make improvements to their holdings and to improve business sustainability. Funding could be used for capital projects, such as the construction or improvement of agricultural buildings.

The grant scheme was open to small farmers who had registered or re-registered with Rural Payments and Services. Small farmers were defined as those who were head of a holding of between three and 30 hectares. This included small farmers who were either:

• owner-occupiers.
• holder of tenancies with a formal contract period of three years or more remaining.
• owners/landlords of holdings where the length, remaining or whole, of a tenancy is three years or less.

To be eligible smaller farmers also had to meet certain income thresholds, including:

• for individual and sole traders, total income could not be greater than £30,700.
• for couples or groups, total gross income could not exceed £41,000.

Public expenditure

The SFGS 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 SFGS under the SRDP 2014-2020 is provided in Table 14.1. Under the SRDP 2014-202 the SFGS made final co-financed payments to beneficiaries in 2020.

Source: Scottish Government, Annual Implementation Report 2023.

Performance indicators

A summary of the outcomes achieved by the SFGS is provided in Table 14.2.

Source: Scottish Government, Annual Implementation Report 2023.

Scheme evaluation

The SFGS was subject to a joint evaluation alongside the CAGS and NECGS. 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 SFGS which worked well and less well are generally captured under lessons learned – see CAGS. The evaluation found that:

• the SFGS significantly underperformed – both in terms of realised expenditure (compared to original budget) and the total number of small farmers supported.
• while the rationale for the inclusion of the income test (which did not apply to the other capital grant schemes) was understood by stakeholders, its application for the SFGS meant that many small farmers were ineligible while others were reluctant to provide the supporting evidence.

Lessons learned

See lessons learned under CAGS.

Current status of the scheme

The SFGS formally closed to new applications in December 2022, and the last payments formed part of the transition period to 2024.

In partnership with the Scottish Agricultural Organisation Society (SAOS) and agriculture, small holding and food industry stakeholders, SG set up an industry-led steering group to co-design a replacement fund to the SFGS. The Small Producers Pilot Fund aims to help individual small producers increase their resilience and enhance their contribution to the rural economy. The revenue based fund will improve access to training, skills, further processing, and food supply chains – helping producers enhance their value and become more sustainable.

The Small Producers Pilot Fund aims to help individual small producers increase their resilience and enhance their contribution to the rural economy. The revenue based fund will improve access to training, skills, further processing, and food supply chains – helping producers enhance their value and become more sustainable.