GUIDE TO FARM GRANTS – PART TWO
Welcome to part two of the guide to grants. (Part 1 was last week). This is a shortened
version of the 68-page comprehensive guide to farm and rural grants published by Lloyds
TSB (right). To get a free copy of that, write to Lloyds TSB Agriculture, Canons House,
Canons Way, PO Box 112, Bristol BS99 7LB. Or email them at email@example.com
or contact your local Lloyds TSB business banking manager
RURAL ENTERPRISE SCHEME England only
THE most likely use of the Rural Enterprise Scheme (RES) will be to assist with farm diversification projects. However, the objectives of the scheme are more wide-ranging, with the aim of "providing targeted assistance to support the development of more sustainable, diversified and enterprising rural economies and communities". This includes support for community-based projects, marketing of quality agricultural produce, rural tourism and crafts, protection of the environment and improvement of animal welfare, as well as farm diversification.
The scheme is available throughout England (except in Objective 1 areas). The scheme is not restricted to farmers; other rural businesses and community groups may apply.
All schemes must fall into one of the categories listed below. Individual regions have set their own spending priorities, so some of the eligible categories listed below may have low priority in a particular region and be unlikely to secure funding.
• Setting up farm relief and management services.
• Marketing quality
• Diversification of agricultural activities and activities close to agriculture to provide multiple activities or alternative incomes.
• Agricultural water resources management.
• Development and improvement of infrastructure connected with the development of agriculture.
• Encouragement of tourist and craft activities.
• Protection of the environment in connection with agriculture, forestry, landscape conservation or animal welfare.
There is no fixed rate of grant, but three bands of aid depending on the financial return from a project. Applicants will have to bid for the amount of aid they require within these bands:
• Projects with a minimal economic return to the applicant (eg community or environmental projects) – grant aid of between 50-100% of eligible costs.
• Projects where there is an economic return to the applicant – 30-50% of eligible costs.
• Projects generating a substantial return (ie more than 25% of the total investment) – 15-30% of eligible costs.
DEFRA Rural Development Service (see last page of part 1 for contact details).