A new fund in Scotland is set to help small-scale producers become more resilient and enhance their contribution to the rural economy, the Scottish government has said.

The Small Producers Pilot Fund, which is planned to open later this year, aims to give small producers access to a range of new supports designed to create more localised supply chains and cut food miles.

It will replace the Small Farms Grants Scheme.

New fund

In partnership with the Scottish Agricultural Organisation Society (SAOS), agriculture, small-holding and food industry stakeholders, the government has set up a steering group to co-design the fund.

The group’s first meeting is scheduled to take place on Tuesday (March 28).

Speaking on the launch of the steering group for the pilot fund, Rural Affairs Secretary Mairi Gougeon said: “We are committed to ensuring accessible support for small producers and small businesses, including small scale food production and processing.

“Working in partnership with the SAOS, agricultural, small holding and food industry stakeholders, the steering group will design a flexible funding approach that supports local food supply chains, improves access to the right training opportunities, and helps link together small producers into existing abattoirs.

“The Small Producers Pilot Fund will replace the Small Farms Grants Scheme, and aims to increase the proportion of food grown and processed by small farms and small holders, and consumed locally by their local community, including those affected by the cost-of-living crisis.”

SAOS business development manager, Helen Glass, said the pilot fund will assist in creating more localised food supply chains and enhance producer value, as well as cutting food miles.

“Additionally, it will provide the opportunity to support individual small producers in developing their skills and will be key to supporting these producers in enhancing the vital contribution they already make to the rural economy,” she said.

Vice-president for the Scottish branch of the Rare Breeds Survival Trust, Martin Beard, said: “Small-scale producers farming with our hardy, low-input native breeds are crucial to a future for Scottish farming where high-quality, high-welfare food production goes hand in hand with environmental sustainability.

“This initiative from government, combined with action on challenges such as the scarcity of local abattoirs, can help unlock the potential of small scale producers for Scotland’s communities, economy and environment.”