From April 1, 2011 the Crofting Counties Agricultural Grant Scheme (CCAGS) will be targeted exclusively towards Scotland's crofters, with non-crofters no longer eligible to apply.
All crofters, whether tenants or owner-occupiers, will now be treated equally with the removal of the Economic Status Test (EST).
The move was first announced in 2008 in response to the Shucksmith Committee of Inquiry on Crofting, which sought to secure a sustainable future for crofting communities.
It is part of a wider package of changes due to come into effect on April 1, which include:
* extending CCAGS to the whole of the Highlands and Islands Enterprise area
* providing a 10 per cent uplift to support new entrants to crofting
* enabling CCAGS support for the new category of crofting tenant under a short lease of an owner-occupied croft, introduced by the Crofting Reform (Scotland) Act 2010
Farmers with a similar economic status to crofters who wish to apply for CCAGS funding have until February 28, 2011 to submit an EST before the change is introduced. They are still eligible to apply for funding under alternative schemes, including Rural Priorities.
Minister for Environment and Climate Change, Roseanna Cunningham, said: "We recognise the unique contribution that crofting makes to rural communities by driving sustainable economic growth in Scotland's more remote areas. In the current financial climate, crofters need our support more than ever.
"Targeting CCAGS exclusively to crofters will help to ensure that this vital funding goes to the people who need it most.
"In addition, removing the Economic Status Test (EST) from the scheme means that all crofters, whether tenant or owner-occupier crofters, will be treated equally.
"Non-crofters will still have access to capital grants to improve their holdings under Rural Priorities, and of course have the option to retain access to both CCAGS and Rural Priorities by converting their landholdings to crofting tenure."
CCAGS is one of eight funding mechanisms under the Scotland Rural Development Programme (SRDP). Its principal objective is to sustain the crofting way of life and help retain population in crofting areas. Support is available to eligible applicants to improve their land, agricultural buildings, access and facilities for keeping livestock.
Farmers of a like economic status to crofters who wish to apply for funding from CCAGS have a final opportunity to submit an EST by February 28, 2011. ESTs received after that date will be rejected.
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