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

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Farm restructuring and diversification

19/12/2003

A total of over £400,000 has been awarded to farm businesses in the Highlands and Islands following the latest round of the Agricultural Business Development Scheme (ABDS).

Rural Development Minister Ross Finnie today announced that 26 projects would benefit from a share of £425,663, allowing farming families to restructure or diversify their farming businesses.

Mr Finnie said:

"The Scottish Executive is committed to increasing prosperity and the quality of life in rural Scotland. This scheme continues to play a major role in supporting farming families and rural economies throughout the Highlands and Islands.

"In providing assistance to invest in the agricultural holding, the scheme offers farmers the opportunity to restructure and improve their business and at the same time gives environmental, animal welfare and health and safety benefits.

"It has also helped many good innovative diversification projects get off the ground. The Dell Farm Glenlivet Clay Pigeon Shoot and the Glebe Farm Kennels are just two of the successful projects that are now providing job opportunities and first class facilities for the area.

"I hope the projects receiving awards today also go on to be successful examples of what the ABDS can achieve and encourage farming families in the Highlands and Islands to consider whether they too could benefit from the scheme."

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.

681 applications have been successful since the ABDS was launched, with total grants of £8,220,149 being awarded.

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 budget for the scheme is approximately£17 Million, which is broken down into yearly tranches in the H&ISTP. At the moment, the scheme has the potential to support more projects if eligible applicants come forward with good proposals. It should be noted however that scheme budget could be reduced or reallocated, if the spend profile fails to match the annual targets agreed by the European Commission.

Applications 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) and VisitScotland. Industry interests are represented by NFU Scotland, the Scottish Crofting Foundation and the Scottish Landowners Federation, who can send representatives to observe the proceedings. All of the above organisations were involved in the Scheme's design.

The closing date for the next round of ABDS applications is January 12. The ABDS is scheduled to run until 2006.

Page updated: Wednesday, July 21, 2004