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This item was published during the term of a previous administration that ended in April 2007

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Grants boost for Highlands and Islands

25/06/2003

Grants worth£439,489 were today awarded to 34 projects under the Agricultural Business Development Scheme.

Announcing the awards, Rural Development Minister Ross Finnie highlighted the scope for farm families to come forward with further innovative proposals.

The successful projects cover a range of investments in farm holdings, including, livestock accommodation, waste management and storage facilities as well as diversification projects outwith agriculture such as accommodation for tourists.

Mr Finnie said:

"These awards provide support to farmers to help with restructuring and improving efficiency. They can make a big difference to farmers, their families and local communities throughout the Highlands and Islands.

"This further support brings the number of successful applications approved to 847, totalling grant of £7.3m towards overall project costs of £21.8m. The Scottish Executive is committed to building a sustainable future for rural Scotland. These awards can, and do, help individual farmers and crofters achieve this for their business.

"That is why I am delighted to offer my congratulations to the successful applicants and to wish them well in their new projects.

"I still think ABDS can do more to support innovative ways of generating income for farmers and farm families to support our rural communities. However, to do more we need to see a stronger flow of good proposals for diversification and alternative income generation. I hope farmers in the Highlands and Islands will come forward with further innovative proposals in the near future."

ABDS is an innovative business development scheme for farmers/crofters and their immediate families and operates across the Highlands and Islands Special Transitional Programme Area (H&ISTP). Farmers in the rest of Scotland are eligible to apply for grant assistance under the Farm Business Development Scheme.

847 applications have been successful since the ABDS was launched, with total funding of £7,348,455.

ABDS was launched in late 2000, it is a discretionary and competitive scheme providing variable grant assistance of up to 50% to farmers wishing to restructure or re-orientate production or to diversify either within or outwith agriculture. The scheme is co-financed by the Scottish Executive and the European Union.

The overall annual budget for the scheme is set out in the H&ISTP. At the moment, the scheme has the potential to support more diversification projects if applicants come forward with good projects. The budget for diversification projects may have to be revised downwards if there is an insufficient flow of good diversfication proposals to justify the current allocation.

Projects are assessed by a Project Assessment Committee (PAC). The non-agricultural diversification PAC is made up from representatives of the Scottish Executive and from partner organisations including local authorities, Highlands and Islands Enterprise (HIE), Scottish Natural Heritage (SNH), VisitScotland. Industry interests are represented by NFU Scotland, the Crofting Foundation and the Scottish Landowners Federation who send representatives to observe the proceedings. All of the above were involved in the Scheme's design.

The closing date for the next round of ABDS applications is 8 July 2003. The ABDS scheme will run until 2006.

Page updated: Wednesday, July 21, 2004