Knowledge Transfer and Innovation Fund full guidance
Date published: 4 July, 2025
For recent changes to this guidance, please see the bottom of the page.
Table of Contents
- About this scheme
- Aims and objectives
- Knowledge transfer projects
- Innovation Projects
- Applying for KTIF
- Project Assessment Committee
- What grants can be used for
- PAC - Scoring Assessment Form
- How we use your information
- Appeals and complaints
- Contact details
- Recent changes
- Previous versions
- Download guidance
Legal notice This document (KTIF 1 (2015) provides guidance on the Knowledge Transfer and Innovation Fund (‘the scheme’) operated by the Scottish Government Agriculture, Food and Rural Communities Directorate under the Rural Development (Scotland) Regulations 2015 (‘the regulations’). KTIF 1 (2015) is issued as statutory guidance under the regulations. It is therefore a legal requirement to take account of the regulations and guidance when administering the scheme – for example, when considering grant applications, or when looking at what project costs grant can support under the scheme. Scheme applicants are expected to follow this guidance. Scheme applicants are also bound by the regulations, and the grant contract conditions contained in the grant approval letter (KTIF 3). |
About this scheme
The Knowledge Transfer and Innovation Fund (KTIF) is part of the Scottish Rural Development Programme.
This scheme has two main aims:
Firstly it provides financial support for vocational training, skills development and knowledge transfer projects focused on agriculture. This is delivered through workshops, training courses, coaching, information dissemination and farm visits.
Secondly, the scheme funds:
- eligible agricultural demonstration/benchmarking and similar types of projects (for example, Monitor Farms)
- innovation and/or pilot projects that aim to introduce new approaches in agricultural practice
This will help Scotland take advantage of its strong performance in research and development and make sure that the learning from here and elsewhere can be transferred to on-the-ground improvements in agriculture.
Aims and objectives
The scheme’s aims are cross cutting and contribute to the following four European Union Rural Development Regulation objectives:
- fostering knowledge transfer and innovation in agriculture
This includes fostering innovation, cooperation and the development of the knowledge base in rural areas; strengthening the links between agriculture, food production and innovation (including for the purpose of improving environmental management and performance) and fostering lifelong learning and vocational training in agriculture.
- enhancing competitiveness
- restoring, preserving and enhancing ecosystems
- promoting resource efficiency and supporting the shift to a low carbon climate resistant economy
Knowledge transfer projects
KTIF is intended to respond to skills development and knowledge transfer needs identified by the farming industry, as represented by industry organisations and related bodies.
The scheme supports eligible organisations by providing funding towards the setting up of group initiatives aimed at improving skills and transferring knowledge in the agricultural sector. These activities can include workshops, training programmes, coaching, demonstration activities, information activities and other group events.
Initiatives must either fill a gap in existing provision or offer a new and effective way of meeting a skills need where current provision has not achieved the desired effect. The initiatives may be one-off events, a series of events or a longer programme lasting generally not more than three years. Initiatives can be either locally based or national in coverage. However, materials for projects funded by KTIF must be made available for further dissemination, for example by sharing these through the Farm Advisory Service (FAS) or hosting these on social media.
To be eligible for funding the lead organisation or body must be able to demonstrate that staff delivering the training or knowledge transfer events have the necessary qualifications and experience. If staff are to be recruited following an award of funding, then it would be preferable for staff members, facilitators and trainers to be chosen through open competition or a tendering process.
The scheme supports project based initiatives but it does not support courses which form part of normal programmes or systems of education or formal vocational qualification at secondary or higher levels, for example SVQs.
Additionally, the scheme will not support training that is required to carry out the beneficiary’s basic work activities. For example, training that would normally be expected to be delivered by employers to enable employees to deliver core activities.
Innovation Projects
Important: Innovation projects must consist of an innovation being put into practice. KTIF will not fund the research nor the early exploration of an idea. Please note that materials created for innovation projects funded by KTIF must be made available for further dissemination beyond the project and will be subject to copyright of the Crown. |
The scheme strongly supports innovative actions within the agricultural sector. Innovation is often described as a new idea that proves successful in practice.
Innovation may be technological, but also non-technological, organisational or social. Innovation may be based on new but also on traditional practices in a new geographical or environmental context.
The new idea can, for example, be the implementation of a new practice, service, production process or a new way of organising things. A new idea turns into an innovation only if it is widely adopted and proves its usefulness in practice.
Once accepted and implemented, the learning from successful projects must be promoted through the Scottish Government’s Farm Advisory Service, SRN and delivery partners, with a view to informing any revision to options and guidance.
Various means must be used to promote best practice and advice including websites, publications, conferences and workshops.
Examples of the type of initiatives that the scheme will support include Monitor Farms and similar types of projects involving Operational Groups comprising of farmers, industry representatives, consultants, facilitators and others.
These initiatives also serve to promote best practice through benchmarking and the involvement of farmers who participate and observe the benefits of implementing identified solutions first hand.
The scheme supports the running costs of Operational Groups involved in projects that aim to pilot new and innovative ideas to improve agricultural performance. Co-ordination of projects by bodies or organisations experienced in the delivery of such projects will be strongly encouraged.
Operational Groups

An Operational Group is a group of people and/or organisations who work together to solve the same problem or try out a particular new idea. You can have as many people as you want in your Operational Group, provided there is at least two people who do not work for the same business. One person must be a farmer. Everyone in the group should play an active role in the project. Usually an Operational Group will have people with different interests, skills and knowledge e.g. farmers, scientists, agri-businesses and consultants.
Operational Groups might involve farmers working alongside researchers, advisers, non-governmental organisations (NGOs) and businesses involved in the agricultural and land management sector to jointly develop and implement proposals for an innovative project that aims to deliver concrete improvements in agricultural and other land management practice.
Partner selection and their role
The Operational Group should agree their project application together. As part of this process you should set the role of each of the people in the project, including details of what they will be responsible for.
As part of this process you must appoint a lead partner. They will be responsible for submitting the paper work, for the payments, and fulfilling the reporting requirements. They will also be responsible for ensuring that the project stays on track, meeting all the agreed milestones. The lead partner will be the main point of contact for the KTIF team.
As the lead partner signs the application form and enters into the grant funding agreement, they will be legally liable if the project is found not has not been completed in accordance with scheme rules or the terms and conditions of any grant award. The lead partner is also legally liable for the payment of any penalties or repayment of the grant.
Partnership agreement
It is recommended that you draw up a partnership agreement between all the members of the Operational Group. This will help ensure that everyone has a common understanding about each other’s role and responsibilities and what needs to be done to complete the project. It can also be helpful in avoiding disputes later and mitigating the risk for the lead partner who is liable under the funding agreement.
Typically, a partnership agreement will outline the purpose of the partnership (i.e. to carry out the project) the term (how long it will last), role of the people involved and what will happen if one of the partners leave. It will also detail the division of the funding and any profits, liability of the partnership, use of shared assets and dispute resolution process.
Business Gateway and other support services can provide you with more advice about partnership agreements or alternatively seek legal advice.
Conflicts of interest
Your partnership agreement should also include details on how you will manage and avoid conflicts of interest.
Applying for KTIF

Eligible applicants
If you would like to apply for this scheme, you must first be registered with Rural Payments and Services and have a Business Reference Number (BRN) and ensure that your bank details are correct. You can find out more on how to do this by visiting our Register page.
To be able to apply for grant under the scheme:
- you must be an eligible body (knowledge transfer projects) or an operational group (for innovation projects)
For knowledge transfer projects:
- your project must be delivered by suitably-qualified personnel
- the participants must be 16 years and over, farmers, crofters or other land managers, their employees or immediate family members who are actively involved in the management of the land or business
- your project must involve at least 10 eligible participants
For innovation projects:
- it is a requirement that the lead party for the project has a proven track record and experience in delivering or coordinating delivery of similar agricultural or land management projects
- It is a requirement that you have an operational group (see ‘innovation projects’ guidance and eligible bodies below)
Eligible bodies
All lead organisations, regardless of project type, will be expected to be capable of producing regular and thorough financial tracking records, including providing relevant and clear receipts and using the claim tracker (which you can find on the ‘forms’ page – an individual claim tracker will be provided to successful projects). This must be done by the deadlines provided, and project leads will be held accountable for late or unclear records and claims. Late claims may not be honoured by the KTIF team.
Knowledge Transfer projects:
Public and private sector organisations or bodies that deliver knowledge transfer, skills development and/or information actions to the benefit of those engaged in agricultural and rural land management are eligible
Some examples of eligible bodies are:
- an agricultural levy body
- an enterprise company
- a non-profit organisation
It will be important that eligible bodies demonstrate that delivery agents have the appropriate capacity in terms of knowledge, skills, experience and, where appropriate, qualifications.
Applicants must demonstrate that people sharing knowledge for the project have the appropriate knowledge, skills and experience to deliver the project successfully.
For instance, a farmer demonstrating a particular farming method to other farmers during a pre-arranged farm visit might not need any formal qualifications.
Instead they might be expected to provide evidence that they have the appropriate knowledge, skills and length of experience to demonstrate the methodology to others.
On the other hand, someone providing tuition, in a classroom setting, to recipients on the environmental impact and adverse effect on habitats resulting from the improper use of herbicides or pesticides may require formal qualifications and be required to demonstrate an appropriate level of continued professional development through a professional body and/or training.
Innovation projects:
Operational Groups (see also ‘innovation projects’ guidance)
Collaborations (or "Operational Groups") might, for example, include farmers, researchers, consultants, facilitators, advisers, NGOs and businesses involved in the agriculture and food sector working collectively on a project.
The lead party of the operational group or co-operation project should have a proven track record in delivering similar projects in agriculture.
The applicant body should not directly benefit, either financially or in-kind from the project.
Eligible projects
Knowledge Transfer Projects
Projects that promote vocational training and skills development for one of KTIF's objectives. This will be in the form of workshops, training courses, coaching, demonstration activities, information actions and farm visits.
Examples include:
- projects to help farm businesses adapt to climate change
- projects to help equip new entrants to farming with the right business skills and help with succession planning
- projects to provide farmers with the knowledge and skills to adopt precision farming technology
- projects to establish business improvement groups for various livestock sectors
- projects to enhance crofting skills
Innovation Projects
The KTIF grant scheme supports demonstration or benchmarking of innovative projects. For example, pilot projects and co-operation projects that aim to introduce innovative approaches to agricultural and land management practice.
The types of projects that are supported in this area are:
- the operation of Operational Groups to implement projects that aim to introduce new processes and utilise new technologies and techniques in the agricultural sector, which in turn are expected to deliver improved productivity and/or sustainability
- operations that strengthen the links between agriculture, research and innovation by applying research findings to agricultural projects, testing viability and evaluating the degree to which productivity and/or sustainability benefits can be achieved
Grant funding does not extend to support for purchase of capital equipment or fixed assets that would have an extended use beyond the duration of the supported project or initiative.
Projects that already have national or EU funding in place may not apply.
Submitting your inception note
Any inception note must be submitted on an application form: KTIF - Inception Note Template
Eligible bodies or organisations are able to inception notes explaining:
- what is planned
- how this will support at least one of KTIF’s objectives
- why funding is required
- how much funding is required
- what is expected to be achieved and when
- how you propose to carry out the project to reach one (or more) of KTIF’s objectives
- details of experience in delivering similar projects
- details of governance arrangements where more than one entity is involved and how project partners will work together
Project Costs
When applying for KTIF, you will be required to provide a costings spreadsheet (you can find this spreadsheet on the forms page). The categories within this spreadsheet are explained below.
Category A - Project Development Costs:
- Consulting or facilitation fees in setting up operational groups or workshops
- Expenses incurred in connection with the planning, development or design of the project
Category B – Project Management Costs:
- Consulting or facilitation fees in initiating, administrating, planning, executing, controlling, and finishing/evaluating a project
Category C – Fees for Speakers & Facilitators:
- Fees for expert advice or guest speakers out with the day to day project management costs
Category D – T&S Costs:
- Fees for travel and subsistence cost of training/facilitation providers
- For training/facilitation provider accommodation
Category E – Event Venue Costs:
- Event hosting cost (including venue and catering hire)
Category F – Materials and Event Costs:
- Non capital items which support the project eg. renting of weight crates, sensors etc
- Printing, postage and publishing of course/project material for the participants
Category G – Comms & Publicity Costs:
- Associated press and article writing/publishing for wider dissemination
- Video production and editing
- Adverts or publicity
Category H – Other Approved External Costs:
- Can include one off consultancy/facilitation costs if not being delivered by the project leads or operational group
- Ad hoc external testing, analysis or data collection if not being delivered by the project leads or operational group
All costs must be clearly receipted and claimed within given deadlines. The budget for each period will be determined and advertised in advance and grant awards will be prioritised as necessary.
Applications must be e-mailed to KTIF@gov.scot using the KTIF 2 form provided on the forms page.
This should be submitted alongside a costings spreadsheet (also available on the forms page) and a comms plan. Your application form must be completed by person who will act as project lead. Project leads will be the main point of contact, and will be legally liable if the project fails to meet the scheme rules.
Project Assessment Committee
The purpose of the Project Assessment Committee (PAC) for this scheme is to provide a forum to assess applications.
It also provides a forum for monitoring the operation of the Scheme and considering whether any changes should be introduced.
The PAC is chaired by the Head of Agricultural Development, who is responsible for overall policy and management of the scheme. The chair will be deputised by the Agricultural Development Senior Policy Adviser, supported by PAC Secretariat. The PAC also includes representatives from other parts of the Scottish Government, including the Rural Payments and Inspections Division and other bodies such as Scottish Enterprise, among others.
Terms of reference
The terms of reference of the PAC are:
- (a) to consider and determine applications for assistance under the KTIF, including the level of grant and any conditions to be imposed
- (b) to monitor the operation of the Scheme and to consider any adjustments needed to achieve its objectives more effectively
Rules of procedure
The committee may operate by face-to-face meetings or by electronic or other means of communication.
A meeting may be convened by the Chair acting on their own initiative or at the request of a permanent member of the PAC.
Where appropriate or necessary, the PAC may call upon the advice of non-members.
The PAC should aim to respond to applicants within 4 weeks after their applications have been assessed.
The Secretariat will record the decisions and key considerations in each case and maintain, and provide at each meeting, appropriate records of all cases received and decisions made.
Decisions on applications will, wherever possible, be taken by consensus, as will any recommendations for amendments to the scheme.
It may be that certain projects pass the PAC but are held over until the next funding round due to budget prioritisation.
Application selection criteria
Proposals will be assessed on the basis of:
- how the project contributes to at least one KTIF objective
- degree to which the project outcomes will contribute to knowledge transfer/innovation in agriculture
- reasonableness of cost
- affordability given available budget
- durability and degree to which project outcomes will benefit the wider agricultural community
- governance arrangements and ability to deliver the project successfully
The application assessment form used by PAC to score applications can be found on the PAC – Scoring Assessment Form guidance page.
What grants can be used for
The grant rate for Knowledge Transfer projects will be 75 per cent (75%) of eligible costs.
For innovation projects, the grant rate will be 100 per cent (100%) of eligible costs.
When assessing the reasonableness of cost of your application, the PAC will consider:
- value for money and the benefits to be gained from the project
- the level of grant required and industry buy-in
- the contribution being made by other bodies involved in the project
- the types of project costs requiring grant assistance
A commitment from industry to contribute funding to projects would be considered a positive reflection of industry buy-in.
Costs that KTIF could support
Grant assistance will be based on actual costs involved.
For knowledge transfer projects, this will include:
- training courses
- workshops
- coaching
- demonstration activities
- benchmarking
- farm visits
Eligible costs will include the cost of organising, delivering and implementing projects. The following project costs may be supported:
- development costs
- fees travel and subsistence cost of training providers
- event hosting cost (including venue and catering hire)
- project management costs
- essential course material
- publicity
- other necessary costs required for the successful delivery of the project
For innovation projects, eligible costs will fall mainly under the running costs of the cooperative project, dissemination of learning, and on direct costs of specific projects linked to detailed approved plans.
The co-operation measure can cover five types of cost:
- studies/plans – studies of the area concerned and the drawing up of business plans
- animation – this essentially covers the recruitment of participants in a project and networking between them required to define a project adequately and get it off the ground
- running costs of the co-operation – the running costs in question are not all running costs of the projects, but rather the running costs arising from the act of co-operation. An example would be the salary of a co-ordinator
- direct costs of specific planned projects – are direct costs which arise directly from the activities of the project rather than from preparatory studies, animation or ongoing coordination. This would be specifically targeted to projects focused on innovation
- promotion – this overlaps somewhat with the category above and refers to direct costs arising from promotional activities
Claims for actual costs need to be supported with receipted invoices/bank statements and proof of expenditure. It is the project lead’s responsibility to ensure that claims are submitted alongside clear receipts before given deadlines. Projects that do not submit claims on time risk not receiving KTIF funding for the late claim(s).
Please note: Applicants must indicate whether they include VAT in the costings of their project. VAT cannot be included if VAT is recoverable for the lead organisation.
Items and activities that cannot be supported
KTIF does not permit funding for normal education programmes at further or higher levels.
Funding support cannot be provided for projects or activities that are already taking place and would normally be expected to occur without grant assistance.
In relation to workshops, training courses, coaching, and farm visits events, the below costs shall not be considered eligible for grant support:
- travel for participants
- accommodation for participants
- daily expense for participants
- cost of replacing a farmer when participating in an event
In assessing the applications that come in there will be a need to be an assessment of the eligibility of the applicant and the eligibility of the application.
Grant claiming conditions
If your application is successful, you will receive an approval letter KTIF 3. You must sign and return the letter before any expenditure is incurred. If your approved project is a multi-year project (spanning over more than one financial year), you must wait for confirmation to proceed from the KTIF team at the start of each financial year before incurring any new expenditure.
Interim and final grant payments must be claimed using claim form KTIF 4. If your project is successful, you will be provided a claim tracker, which you must update and share with the KTIF team with each project claim.
Multi-year project funding will only be confirmed at the beginning of each financial year and project leads must not incur spend on any financial year without express confirmation from the KTIF team that they may do so. Project leads that do not wait for confirmation to commence activity will be liable for any costs incurred. The conditions under which the grant is paid by the Scottish Government will be detailed in the Schedule attached to the approval letter KTIF 3.
Inspection and verification checks
The Scottish Government may carry out checks or seek clarification, further supporting evidence or information relating to any aspect of an application or a claim for payment.
- grants will be paid on actual expenditure based on receipted invoices/bank statements and evidence of satisfactory progress at agreed intervals
- the Scottish Government may, at any reasonable time, seek to verify the accuracy of any information contained in an application or a claim for payment or any other information, provided by the applicant relating to the project
- the project will be subject to monitoring by the Scottish Government as detailed in the grant offer letter to ensure that outcomes are met. The project will be monitored as it progresses and an evaluation of the project will be required upon completion. A request may therefore be made for a progress report, or after completion, a report on the project’s performance
- the applicant will be required, on request from the Scottish Government to co-operate by permitting full access to records relating to the project
- PAC may request additional meetings with project leads to see how the project is progressing. KTIF secretariat will provide advance notice in these cases
To ensure full access, applicants must:
- retain all invoices/bank statements, accounts and other relevant documents in relation to the application and produce them for inspection if required to do so
- provide such additional information in relation to the investment or project or grant monies paid in pursuance of that investment or project as required
- retain all records relating to a project for a period of five years following the completion of the project and the payment of the final grant in support of that project
- retain records of project progress to allow for intermittent updates to KTIF secretariat as and when requested
Breaches of scheme rules and conditions
The Rural Development (Scotland) Regulations 2015 make provision for the revocation and variation of approval, the withholding or recovery of grants and the payment of interest on grants recovered.
They also create offences of knowingly or recklessly making a false statement to obtain grants or obstructing authorised persons acting under the regulations.
The penalties under this Scheme may require the applicant to pay an additional penalty and prohibit the applicant from applying for further grant assistance under the Scheme for a specified period.
PAC - Scoring Assessment Form
How we use your information
The information you provide us with as part of your application will be treated as confidential, although we may share some of it with other relevant bodies to help us make a decision about funding or to meet certain legal requirements.
You can find out more in our privacy policy.
Appeals and complaints
Appeals
The Knowledge Transfer and Innovation Fund (KTIF) Project Assessment Committee (PAC) is responsible for making decisions on applications to the fund. You can request a review of the decision made on your application by contacting the KTIF team (please see ‘ contact details’ section for more information).
Complaints
A complaint is an expression of dissatisfaction with our standard of service, procedures, or processes that you feel requires a response or explanation from us.
You or your representative may complain in person by phone, by email or in writing.
All complaints will be treated seriously by us and you will receive a full response. Our complaints procedure has two stages:
- stage one – frontline resolution
- stage two – investigation
Complaints about an alleged failure to apply the regulations or scheme rules correctly should be referred in the first instance to the KTIF inbox (KTIF@gov.scot).
If you are dissatisfied after frontline attempts are made by the KTIF team to resolve any issues, you are entitled to request that the matter be reviewed by writing to the Head of Agricultural Development, whose address is listed within the ' contact details' section.
Complaints related to alleged mistreatment or unsatisfactory service by members of staff will be undertaken using the separate Scottish Government complaints procedure.
Details can be found on the Scottish Government website. This will again involve the Scottish Government working to resolve the issue locally, or failing that, an Investigating Officer being appointed to investigate the complaint.
Scottish Government complaints procedure.
If you remain dissatisfied you have the option of referring your complaint to the Scottish Public Service Ombudsman (SPSO). You should note however that the SPSO will generally not investigate complaints unless they have been dealt with, in the first instance, by the public body’s internal complaints procedure. More information can be found at the Scottish Public Services Ombudsman website.
Contact details
Appeals and initial complaints
KTIF Enquiries: KTIF@gov.scot
Requests for reviews
Head of Agricultural Development
The Scottish Government
Agriculture, Food and Rural Communities Directorate
D Spur, Saughton House
Broomhouse Drive
Edinburgh
EH11 3XD
Recent changes
Section | Change |
---|---|
Applying for a grant | Updated for 2024 round |
Project assessment committee | Update to information regarding who chairs the PAC |
Previous versions
Download guidance
Click 'Download this page' to create a printable version of this guidance you can save or print out.