This item was published during the term of a previous administration that ended in April 2007
Listen
Funding to help farms develop their business
07/07/2006
A further 200 projects will benefit from Executive funding to create new or expand existing businesses and create employment across the Lowlands area of Scotland. Projects range from the restoration of a disused hydro-electric turbine, the creation of a recycling facility, to the development of livery stables and equestrian centres.
Rural Development Minister Ross Finnie today announced that an additional £3.3 million will be awarded to farm diversification or restructuring projects across central and southern Scotland. £28.8 million of grants have now been awarded to more than 1,700 projects under the Farm Business Development Scheme (FBDS) since its inception in 2001.
Mr Finnie said:
"The Scottish Executive is committed to increasing prosperity and the quality of life in rural Scotland. By encouraging farm business development, with over £8 million of grant funding awarded so far this year, we have played a major role in helping farming businesses across Scotland remain profitable.
"The projects we have supported can also provide wider benefits such as creating jobs, attracting visitors and providing services not currently available in certain areas, thus helping to support rural communities."
Background
The Farm Business Development Scheme (FBDS) is a competitive business development scheme for farmers and their immediate families.
The FBDS covers the area of Scotland which lies outside the Highlands and Islands Special Transitional Programme (HISTP) area. 3. FBDS was launched in 2001 to provide variable grant assistance of up to 50% for farming families wishing to diversify either within or outwith agriculture. With effect from June 2005 it was expanded to include a new measure to support investment in agricultural holdings (IiH), with the grant ceiling raised from £25K to £30K.
The popularity of the new Investment in Holdings measure within has resulted in almost 1300 applications to date. There were more than 800 successful projects sharing over £12 million of public funding since June last year.
The Scheme is discretionary and cash-limited.
There are 5 locally based Project Assessment Committees (PACs) which assess diversification applications. These PACs consist of representatives from partner organisations, including local authorities, local enterprise companies, Scottish National Heritage and VisitScotland. The National Farmers Union and the Scottish Rural Land & Property Business Association represent industry interests.
The IiH PAC is made up of Agricultural and policy staff from the Environment & Rural Affairs Department. All PACs are chaired by the Scottish Executive, with industry observers.
The Scheme closes to new applicants at the end of 2006. There will be one more round of funding before the end of the year. The final closing dates for applications are 15 August for diversification proposals and 11 September for IiH proposals. Successful applicants then have 2 years to complete their projects and claim their grant.
Resources are finite and it is important for farmers and advisors to recognise that only the strongest business cases are likely to be successful in the final funding round in October. The Executive will continue to target funding on those projects offering the greatest degree of re-structuring as well as the maximum added value for the rural economy.
Future funding for business development projects is currently being considered by the Scottish Executive as part of the development of the new Scottish Rural Development Programme for 2007-13.