The level of grant support available to help crofters build and improve their homes is to be increased.
Crofters will be able to apply for up to £28,000 under the new levels.
The higher "islands" rate of grant has increased to £38,000 and will be extended to cover some remote mainland districts.
For the first time, a form of means testing of applications for the Croft House Grant Scheme (CHGS) will be introduced.
From April, a "selection mechanism" will be applied "to ensure that support is targeted at those most in need."
Building costs have gone up in the 10 years since the latest scheme started in 2006 but assistance rates have remained frozen.
The new levels mean some crofters will be eligible for more than double the funding available under the old scheme.
A review will be undertaken in 2019.
The Scottish Government confirmed it is considering the reintroduction of a loan scheme to help build croft houses.
Crofting minister, Aileen McLeod, said: “Good quality housing is essential to help attract and retain people in Scotland’s most remote and rural communities, and to help crofters fulfil their duty of living on or close to their croft.
“The Scottish Government’s Croft House Grant Scheme has invested £14 million to build or improve almost 700 homes since 2007 and the changes I am announcing today will help ensure this support is fit for purpose in the years to come.
“I am pleased to confirm that -
Jamie McGrigor, Highlands & Islands Conservative MSP and the convenor of the Scottish Parliament’s crofting group: “ I broadly welcome today’s announcement which is long overdue given grant levels have been frozen since 2006, meaning of course that they have been cut significantly in real terms over this period."
"This has very broad supporting among crofters and I hope all those new MSPs elected for the Highlands and Islands after the election in May will put pressure on the next Scottish Government to come to a decision on a loan scheme as quickly as possible.
"Crofters have particular problems accessing mortgage finance for houses and many believe a loan scheme would make a real difference.”
Croft housing grants increase
1 February 2016