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Finnie Announces £75 Million Pound Cash Boost for Lowlands Agriculture
02/07/2001
Farmers and food processors in Lowland Scotland received a boost today when the Scottish Executive launched two new grant schemes, the Farm Business Development Scheme and the Processing and Marketing Scheme, worth more than £75 million over the next five years.
Minister for Environment and Rural Development, Ross Finnie said:
"These schemes will provide a real boost to farmers and processors in Lowland Scotland and further underline Scottish Executive commitment to rural areas. The schemes will be worth more than £75 million to people in this area and make a valuable contribution to improved employment and living conditions and sustainable agriculture - I hope they will prove particularly helpful for farmers affected by foot and mouth.
"The Farm Business Development Scheme will be open to farmers and their immediate families who have been actively engaged in agriculture for at least two years. It will assist them in diversification activities - either on the farm or off the farm.
"For the first time the Processing and Marketing Scheme - available to all agri-food processors, from on-farm through to large brand leaders - will benefit primary producers by adding value to Scottish primary agricultural produce. The scheme also aims to increase quality and revenue, develop new innovative products and increase market share both home and abroad.
"Both schemes will help establish new sources of income and sustain existing businesses by addressing the needs of farmers and their families and helping producers and food processors. I am pleased that they have been developed in partnership with public sector and industry bodies and will continue to build on this approach"
BACKGROUND
1. The new schemes will be open for applications today. The Schemes have received Scottish Parliamentary approval but payments will not be made under the Schemes until the formal receipt of European Commission state aids approval.
2. The Farm Business Development Scheme (FBDS): The FBDS will provide a range of grants at variable rates to farmers or their immediate families to create new income generating opportunities or to expand or improve existing diversified activities, either within or outwith agriculture. The Scheme will operate in all areas of Scotland, outwith the area covered by the Highlands and Islands Special Transitional Programme where there is a separate scheme. The FBDS is competitive and cash limited. The maximum grant will be £25,000 per eligible business or £30,000 if 3 or more eligible businesses have joined together. Grant rates will be up to a maximum of 50% depending on the type of project. These rates are in accordance with those set in the European Commission's Guidelines for State Aid in the Agriculture Sector - The Scheme will provide grants worth around £52 million between now and 2006.
3 The Lowland Scotland Processing and Marketing Scheme will provide capital and non-capital assistance towards the processing of agricultural produce from small on farm enterprises through to large Scottish brand leaders. Again the scheme is competitive and cash limited. The scheme will allow producers and processors to add value, increase quality, increase revenue and compete more effectively in the market place. The estimated budget for the scheme is in the region of £25m between now and 2006. Grants under the scheme will be at variable rates up to a maximum of 40% of eligible project costs.
4. The FBDS and the Processing and Marketing Scheme will be delivered locally through 6 Project Officers seconded to the Scottish Executive. Applications for FBDS grant will be considered by 5 regional Project Assessment Committees (PACs), chaired by SEERAD who will make recommendations to Ministers. Membership of the PACs will be wide ranging including local authorities, local enterprise companies, Scottish Natural Heritage, local tourist boards and other interests. Under the Processing Marketing Scheme a single Project Assessment Committee (PAC), again chaired by SEERAD and made up of representatives from the public sector and the agriculture and food industries, will assess all applications. PACs for both schemes are likely to meet between three and four times per year depending on the level of applications.
News Release: SE1599/2001
2 Jul 2001