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PROVISION AND UPGRADING OF INFRASTRUCTURE RELATED TO ACCESS TO FARM AND FOREST LAND, ENERGY SUPPLIES AND WATER MANAGEMENT (Tier 3)
Article 20(b)(v)
Measure Code (125)
Rationale for Intervention
Improvements in the competitiveness of farm and forestry businesses are identified as key objectives in, respectively, A Forward Strategy for Scottish Agriculture: Next Steps and The Scottish Forestry Strategy. This measure seeks to facilitate improved business performance and, thereby, enhance the contribution of farm and forestry businesses to local economies. These objectives are underlined in the Strategic Plan which prioritises under Axis 1 the need to enhance competitiveness, develop a market focus and add value locally.
By sharing the cost of the capital investments, we can pump-prime businesses to improve the infrastructure underpinning their land based activities and, through the prioritisation process, can also encourage wider benefits such as improvements in animal health and welfare, environmental management, water resources management and health and safety for those involved with the land-based business.
Objectives
This measure aims to encourage land managers to invest in their existing or diversified land based businesses, in order to improve viability, increase market orientation and/or to achieve other benefits such as improved animal welfare or reductions in diffuse water pollution.
Scope and actions
The Scottish Executive will provide a variable contribution to the eligible costs of providing or upgrading infrastructural elements where it can be shown that:
- they are an essential part of the restructuring or re-orientation of the business; and
- the restructuring will result in improvements in access to farm or forest land, in the supply of energy or in water management.
Restructuring is taken to mean changes to the scale or nature of the agricultural business as a whole or of specified elements of the overall business and/or significant changes to existing business practices.
Potential beneficiaries will have to produce evidence to demonstrate that an overview has been taken of the operation of the business, its strengths and weaknesses and options for change and to show that the proposed investments are part of a longer term process of improving sustainability.
Definition of beneficiaries
Land managers.
Description of performance requirements and targets
As a minimum, all potential beneficiaries will be expected to be compliant with existing European Community standards applicable to any new areas of activity undertaken as a result of this investment.
In addition, all potential beneficiaries will be expected to comply with Good Agricultural and Environmental Condition ( GAEC) and Statutory Management Requirements ( SMRs).
Potential beneficiaries will identify the expected improvements in performance of the business, as a result of the planned investment, against the criteria identified above. These expected benefits will be used as part of the competitive process for assessing applications. They will also form the basis of future monitoring of successful projects.
Type of investments
The capital investments eligible for funding will include tangible or intangible costs related to the development or upgrading of energy supplies, water ( e.g. storage reservoirs) or other infrastructural elements to improve efficiency or sustainability.
Designation of newly introduced Community Standards
Not applicable.
Type of aid
Capital grant
Aid intensity
Variable, dependent on requirement to allow the project to go ahead, with ceilings of 40% of eligible costs (non Less Favoured Areas) and 50% (Less Favoured Areas) with a 10% premium on the ceilings for investments undertaken by young farmers.
Transition arrangements
None.
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