17 May 2002


A PACKAGE of capital grants is now available to Welsh farmers to help farming families develop multiple sources of income. To be eligible, they must:

&#8226 Have had a Farm Business Development Plan (FBDP) recommending capital


&#8226 Spend at least 550hours/year on agricultural activities on

their holding.

&#8226 Have a Holding Number.

&#8226 Be able to confirm the

business will be viable at the

end of the period covered

by the FBDP.

&#8226 Be able to confirm the project will not be able to go ahead without the grant.

&#8226 Be able to name one person who has responsibility for the day-to-day running of the agricultural business.

&#8226 Be able to show that minimum standards for welfare, hygiene and environmental measures are met.

&#8226 Have received at least the outline planning permission if necessary and any other

consents for relevant


Farm Improvement Grant (FIG)

Provides capital funding to improve the farm holding to enhance the quality of animals and crops on farm.

Funding is available for applications made under the following categories:

&#8226 Waste management.

&#8226 Livestock and crop husbandry.

&#8226 Resource management.


Welsh Development Angency. Tel: 08457-775577

Farm Enterprise Grant (FEG)

The Farm Enterprise Grant provides support for farming families to attract alternative income and employment through on-farm diversification. The grant is specifically for capital expenditure, but costs such as marketing and advertising may be permissible if considered appropriate.

Types of activities that will be eligible for support include:

&#8226 New enterprises.

&#8226 Alternative crops and livestock.

&#8226 Processing of non-food products


Welsh Development Angency. Tel: 08457-775577

Timber Processing Capital Grant

Designed to encourage businesses to attract alternative income by adding value to farm woodlands. The scheme is run by the Forestry Commission and provides capital grants for timber harvesting and processing equipment, and conversion or construction of new buildings.

&#8226 Eligibility – applicants must be able to demonstrate that the proposed project will result in a viable enterprise within three years of completion.

&#8226 Grant – the basic rate of grant is 30% of eligible

expenditure, or 40% for young farmers, with a minimum grant of £750 (ie eligible costs of £2500) and a maximum of £30,000 (ie £100,000) per

application per year.

The Farm Tourism Grant

This grant is available to assist farm tourism where applicants can show that a demand already exists for their venture. The scheme is managed by Wales Tourist Board (WTB) but similar to the other capital grants, applications should be made via a Farming Connect registered consultant.

&#8226 Grant – there is no set rate of grant, but it is likely to average 35%.


Wales Tourist Board, Brunel House, 2 Fitzalan Road, Cardiff. Tel: 029-2049 9909

Other Capital Grants (Wales)

Two further schemes are available to Welsh farmers – the Processing and Marketing Grants and the Shelterwoods Project. The Shelterwoods Project is run by the Forestry Commission and grant aid will be provided to assist with the cost of fencing the new shelterwoods.


Basic rate of 30% 35%grant on eligibleexpenditure

Minimum grant £450 £525award perapplication

Maximum £16,000 n/agrant awardover two year period

Maximum £75,000 £75,000combinedFIG+FEG overtwo year period

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