Finnie widens farm funding

SCOTTISH LOWLAND farmers are to benefit from funding worth £26.9m this year to help them develop or diversify their farm businesses.

Until now, funding though the Farm Business Development Scheme has only been available for diversification projects, but demand has failed to meet even a fraction of the money available

So Scottish rural development minister Ross Finnie plans to extend the scheme to cover investment in capital projects, like the Highlands and Islands’ Agricultural Business Development Scheme.

If MSPs agree, farmers will soon be able to secure funding for projects such as new or improved waste management facilities, livestock accommodation, infrastructure and new technology.

Mr Finnie said: “These enhanced measures underline our commitment to deliver a strong and diverse rural economy.

“Since August 2001, just under £11 million in FBDS grant assistance has been awarded to over 630 successful FBDS diversification applicants.”

He claimed the scheme had generated £56.8 million of inward investment in new and expanded diversified businesses in rural areas.

NFUS President John Kinnaird welcomed the changes, saying that the Highlands’ equivalent had delivered clear results.

“It is right that this sort of money should not solely be used to encourage businesses to diversify away from farming.

“The farm businesses that have used the scheme are delivering knock-on benefits for the whole rural economy.”

If the changes are approved, they would take effect in June, allowing farmers to apply for 50% match-funding worth up to £30,000.

The scheme will only accept new applications for the next two years.