As part of Scotland government’s drive to put the rural economy at the centre of the post-COVID recovery programme, a new £10 million fund has been set up in order to help farmers buy new equipment.

Known as the ‘Sustainable Agriculture Capital Grant Scheme’ (SACGS), it will run for five weeks, offering grants of up to £20,000 for farmers and crofters to purchase new equipment.

The designated fund will open for applications later this month, the government said.

Scottish food as well as farming businesses have been granted £5 million by Food Processing, Marketing and Cooperation (FPMC) to invest in infrastructure and purchase new equipment. In total, 30 businesses will receive grants to support the food supply chain.

According to the government, the grant will safeguard over 1,350 jobs and create 97 new ones as well.

The projects include:

• Improving storage facilities

• Investing in new root vegetable processing equipment

• Purchasing new equipment to establish a Hebridean charcuterie business

“This support will enable established producers to look to the future and capitalise on emerging marketing opportunities, as well as offer support to start-up businesses,” Rural economy secretary Fergus Ewing said.

To support the economic development of farming businesses in Scotland, the South of Scotland Economic Partnership funding package worth more than £2.1m has been awarded to 28 projects, all located in Dumfries and Galloway and the Scottish Borders.

The money will be used to support the region’s economic recovery from the COVID-19 pandemic and help generate employment opportunities.

Rural Economy Secretary Fergus Ewing launched a loan scheme to give farmers and crofters access to vital financial support during COVID-19 crisis. The National Basic Payment Support Scheme will inject up to £340 million into the rural economy.

The fund provides Scottish farmers and crofters access of up to 95% of their 2020 CAP BPS and Greening payment, restricted to the scheme maximum of £133,638.  Loan offer letters will be sent to eligible farmers and crofters from the beginning of August, with the first payments due in September.

“Our farmers and crofters are vital to Scotland’s economy, putting food on our plates during this unprecedented crisis.” he said.