The Scottish Government has set out plans to develop a Rural and Island Housing Grant Scheme with an indicative budget of up to £20 million over four years.

Aimed at easing housing costs in rural and island areas, the scheme is intended to help people – including first-time buyers and families – to own affordable homes in the places they want to live.

Unveiling the proposals at the National Farmers Union Scotland Conference, the First Minister also confirmed a package of agricultural support: £14.25 million for a second round of the Future Farm Investment Scheme, a threefold increase in capital funding for small producers to £1.5 million, and £1 million for the Sea Eagle Management Scheme. In total, the draft budget sets out £660 million in support, which ministers describe as the most generous package in the UK.

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First Minister John Swinney said: "We want to ensure people can put down roots in rural and island Scotland or move back to the communities where they grew up, so helping them to access a home is crucial.

"We will work with partners to develop the Rural and Island Housing Grant Scheme, with an indicative budget of up to £20 million. It will build on our positive track record in affordable housing – with 10% of homes being delivered in rural and island communities – and underpin our work supporting the development of the new housing agency, More Homes Scotland.

"It is also important for the sustainability and growth of our agricultural businesses, and for our rural and island economies. It will complement other measures intended to demonstrate, through the most generous direct investment in the UK, our commitment to working in partnership with Scotland's farmers, crofters and land managers to deliver the support they need to meet the opportunities and challenges that lie ahead."