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

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Agricultural Business Development Scheme

22/03/2004

A total of 46 farming families have been awarded funding to invest in their farm businesses or to diversify outwith farming.

The Agricultural Business Development Scheme (ABDS) will provide £743,545 to help kick start projects in the Highlands and Islands.

The scheme is aimed at farming and crofting families, and provides assistance towards investment in their agricultural holding and support to the development of new or existing diversification businesses.

Deputy Rural Development Minister Allan Wilson said:

"The Scottish Executive is committed to building a sustainable rural economy. The Agricultural Business Development Scheme plays a key role in helping us to achieve that goal.

"This announcement will help 46 farming families to enhance the profitability of their businesses, creating employment and providing additional services in rural communities throughout the Highlands and Islands.

"The scheme has supported scores of innovative diversification projects, including the conversion of a redundant farm building into an art gallery, studio and photography darkroom on Acharacle. As well as a golf course clubhouse at Ballachulish and a visitor centre with tearoom, gift shop and display area, overlooking the historic and picturesque Castle Stalker, near Appin.

"Just as important is the opportunity the scheme offers to invest in agricultural holdings. Grant assistance from the scheme is now helping hundreds of farm businesses throughout the Highland and Islands to improve efficiency and is providing better working conditions, as well as improving animal welfare and waste management facilities and standards."

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.

728 applications have been successful since the ABDS was launched in late 2000 with total grants of £8,963,964 being awarded.

ABDS 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 Executive and the EU.

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 April 8. ABDS is scheduled to run until 2006.

Page updated: Saturday, July 17, 2004