This item was published during the term of a previous administration that ended in April 2007
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Improvements to Farm Business Development Scheme
13/05/2005
Plans to enhance incentives to farmers wishing to
diversify or restructure their businesses were announced
today.
Changes to the Farm Business Development Scheme (FBDS),
will increase the grant ceiling from £25,000 to £30,000 and
extend the range of measures to farmers wishing to
restructure or re-orientate their agricultural
businesses.
The scheme continues to offer support to farming
families wishing to diversify, both within and outwith
agriculture.
Rural Development Minister Ross Finnie said:
"These enhanced measures underline our commitment to
deliver a strong and diverse rural economy."
"Since August 2001, just under £11 million in FBDS grant
assistance has been awarded to over 630 successful FBDS
diversification applicants, generating a massive £56.8
million of inward investment in new and expanded
diversified businesses in rural areas."
"This is a significant achievement and represents an
excellent return on the public funds invested in the
Scottish rural economy over a relatively short period."
"The changes to FBDS offer farmers in Lowland Scotland
similar opportunities as that already available to farmers
working elsewhere in Scotland, where the Agricultural
Business Development Scheme (ABDS) operates."
The changes will be introduced on 1 June 2005, subject
to parliamentary approval. New scheme literature will be
available from SEERAD area offices from that date. The
necessary legislative amendments are scheduled to be
considered by the Scottish Parliament's Environment &
Rural Development Committee on Wednesday 18 May 2005.
The news that the Scheme is to be expanded will come as
a welcome boost to farmers planning to invest in capital
projects on their agricultural holdings, such as new or
improved waste management facilities, livestock
accommodation, infrastructure and new technology. The
decision to improve the Scheme followed detailed
consultations with partner and stakeholder interests.
The FBDS is an innovative business development scheme
for farmers and their immediate families operating across
Lowland Scotland, covering the area from East Moray in the
north to Dumfries and Galloway in the south. Farmers
operating in the Highlands and Islands Special Transitional
Programme (H&ISTP) area may be eligible to apply for
similar types of support under the Agricultural Business
Development Scheme (ABDS).
The schemes differ in that the ABDS is co-funded by the
EU and the maximum grant ceiling for that scheme is
£40,000, reflecting the particular economic and other
disadvantages faced by those living and working in the
H&ISTP area.
Both schemes will close to new applicants at the end of
2006, although funding is available for a further 2 years
to permit approved projects to be finalised
The FBDS was launched in July 2001. It is a
discretionary and competitive scheme which can offer
variable grant rate assistance of up to 50 per cent of
eligible costs. It is wholly funded by the Scottish
Executive. The total budget allocation for FY 2005/06 and
the next two financial years is £26.9 million; support for
diversification will continue to account for a significant
proportion of the budget. There are no plans to
ring-fence allocations, although this may be subject to
review.