17 May 2002


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

or contact your local Lloyds TSB business banking manager


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.

Suitable projects

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.

&#8226 Setting up farm relief and management services.

&#8226 Marketing quality

agricultural produce.

&#8226 Diversification of agricultural activities and activities close to agriculture to provide multiple activities or alternative incomes.

&#8226 Agricultural water resources management.

&#8226 Development and improvement of infrastructure connected with the development of agriculture.

&#8226 Encouragement of tourist and craft activities.

&#8226 Protection of the environment in connection with agriculture, forestry, landscape conservation or animal welfare.

Grant rates

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:

&#8226 Projects with a minimal economic return to the applicant (eg community or environmental projects) – grant aid of between 50-100% of eligible costs.

&#8226 Projects where there is an economic return to the applicant – 30-50% of eligible costs.

&#8226 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).

See more