The Scottish government has released £7 million for young farmers as figures from the country’s chief statistician show farming debt has reached record highs.

Announcing the funding on Monday, Scotland’s rural economy secretary Fergus Ewing said the money would help establish and develop 140 new farming businesses across Scotland. The money comes from the EU and the Scottish government and is aimed at tackling the ageing demographic of the agriculture sector.

The latest award from the £7m pot will see £1.8 million distributed between 35 new farm businesses.

Fergus Ewing commented, “Supporting the next generation of farmers and crofters is a key priority to help build growth in our rural economy and create thriving communities. It is therefore crucial that there is a steady inflow of young and new entrants to farming, not only to promote competition and encourage productivity, but also ensure the sector remains sustainable over the long-term.

“With the average age of Scottish farmers currently sitting at 58, it is vital that we provide support for entrepreneurs in the critical early stages. That is why I am delighted to announce a further £1.8 million in grant funding to support a further 35 new farm enterprises. This brings the total support from the EU and Scottish Government to over £7 million, supporting the development and creation of around 140 new farms all over Scotland.

“Following the outcome of the EU referendum, I know that industry is particularly concerned about what the result means for the future of farming and for funding support. Today’s announcement I hope reassures that we are getting on with the everyday business of government, providing certainty and clarity in very uncertain times.”

The Scottish Association of Young Farmers welcomed the funding announcement on Monday.

However, figures released by Scotland’s chief statistician have shown that, in June this year Scotland’s total farm debt reached £2.2 billion, having risen by £177 million since 2015.

This is the seventh year in a row in which debt has increased, and the highest level reached since records began in 1972. Delays in distributing EU subsidy payments to Scotland’s farmers exacerbated the issue this year. By the end of August, 5% of eligible claimants in Scotland were still waiting for their subsidy payments.