A total of 680 rural businesses will share more than £14m this year from the Agri-Environment Climate Scheme (AECS).

Rural Affairs Secretary Mairi Gougeon has announced the next funding round will open from the end of January. The forthcoming round – which will average at about £20,600 per claimant –will target agri-environment support, organics and slurry storage options, and will support the ambition to double the amount of land under organic management by 2026.

In addition, this year’s £5m Agriculture Transformation Fund will extend support for slurry storage. This surpasses the previous targeted support available under AECS and will help the sector meet the regulatory requirements by improving slurry storage and digestate use on farms.

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Ms Gougeon said: “AECS continues to play a significant role in making Scotland a global leader in sustainable and regenerative agriculture," adding that as part of changes to AECS, the area cap will be suspended for the conversion to, and maintenance of, organic farmland for AECS 2023 applications.

However, improving public access; pond creation; muirburn and heather cutting; restoring drystone or flagstone dykes and bracken treatment (mechanised and chemical); will not be available in the 2023 application round. The option for creation of hedgerows will be limited to 500m per application.

NFU Scotland welcomed the announcement, but with budget concerns. Its director of policy and interim general manager, Jonnie Hall, said: “While there’s a strong emphasis on organic conversation to help meet the target of doubling Scotland’s area of farmland under organic production, a number of popular elements have been removed – including improving public access, muirburn and heather cutting, restoring drystone or flagstone dykes, and bracken control.This is disappointing as such agri-environment actions can deliver significant benefits without overcomplicated and costly prescriptions.

“The absence of improving public access is a significant blow, given the ongoing need to ensure safe and responsible access. Moreover, there doesn’t appear to be any commitment on the levels of funding that will be available for AECS 2023, but it’s apparent from the pared back options that funding levels, when announced, are likely to disappoint.

“On a positive note, we have been lobbying for dedicated funding to be made available to support storage for slurry and digestate, so we welcome the dedicated ATF funding for this. Whether this will be sufficient funding remains to be seen."

Andrew Stark, land use policy officer at RSPB Scotland, said: “AECS plays a crucial role in protecting and restoring Scottish farmland wildlife, such as lapwings, curlews and great yellow bumblebees. These vitally important species are reliant upon the brilliant work carried out by farmers and crofters through land management practices that are positive for nature.

"While there are elements of this announcement that we’re pleased to see, such as the lifting of the cap on organics, this funding commitment unfortunately does not go far enough.

“Scotland is facing a climate and nature emergency and the amount of money currently being promised by Scottish Government to address it through AECS is woefully inadequate to help us meet that challenge. Currently, the Scottish Government spends 13 times more on direct payments than it does on supporting the Agri-Environment Climate Scheme,” he pointed out