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Environment and business growth focus of farm capital grants

Capital grants are once more to the fore as Governments use them to steer farmer investments in specific directions.

Ewan Pate
clock • 2 min read
Environment and business growth focus of farm capital grants

Capital grants are once more to the fore as Governments use them to steer farmer investments in specific directions.

As an example, the Sustainable Agricultural Capital Grant Scheme received a boost with the recent announcement of a further 5 million to cover low emission slurry handling equipment and covers for slurry stores.

The maximum grant available to any single business will be 20,000. The application window will open this spring, but for only for six weeks.

There is also the more general Small Farms Capital Grant Scheme, which opens on January 1 every year, with funding limited to 25,000 per business or 125,000 for a group application. The scheme applies to farms of more than three hectares, but under 30ha in size. The Crofting Agricultural Grant Scheme has similar rules and is available to registered crofters.

The Food Processing and Marketing Grant Scheme (FPMGS) offers grants on a bigger scale on a competitive basis. Some individual grants have in the past been in excess of 1m, with food processors or agricultural co-operatives among the recipients.

Equipment

The scheme is, however, available to individual farmers and producers at a more modest level. Grant aid can be as high as 40 per cent, with second-hand equipment eligible in some cases. Applications are competitive and only approved after consideration by an assessment panel.

It has up until now been a single year scheme, but a new longer duration scheme is expected to be announced after March 31.

co-operative projects

Co-operative projects

Jim Booth, development manager with theScottish AgriculturalOrganisationSociety, confirmed that FPMGS was particularly appropriate for co-operative projects, but he also pointed towards the Knowledge Transfer and Information Fund as a source of support for innovative projects.

It can offer grants of 70 per cent up to 100 per cent for projects focusing on the environment and biodiversity, he said.

It is the fund that supported the last round of monitor farms.

quote

"The FPMGS can offer grants of 70 per cent up to 100 per cent for projects focusing on the environment and biodiversity"

JIM BOOTH