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SECTION 2 - List of Options

Axis 1 Improving the competitiveness of the agricultural and forestry sector

Option 1 - Skills development (Training)

What this is about

The aim of this option is to improve the skills within agriculture and forestry, promote a greater range of activities and encourage the development of financially viable, competitive and environmentally sustainable land based businesses.

What this will achieve

This option will support training that improves business competitiveness, facilitates restructuring and diversification and enhances land management skills to deliver environmental and other benefits.

What you must do

The training course you undertake must relate to one of the following aspects:

• Business skills
• Marketing
• Managing people
• Opportunities to expand into other activities (for example training for an HGV licence to move into road haulage)
• Technical skills

We will not support the following training activities:

• courses that form part of normal programmes or systems of agricultural or forestry education at secondary or higher levels
• training course required for or leading to a certificate, licence, diploma or other qualification that are required by law to carry out your basic work activities (such as crop spraying courses, tractor driving courses, chainsaw courses for forestry workers).
• Courses where you can get financial support from another public source, including EU funding

The training can be delivered in various ways:

• short training courses delivered away from the workplace at a local agricultural or other college, or at a hired venue
• training delivered in the workplace
• on-line training courses

Who can apply

Land managers (including farmers, crofters and foresters).

How to apply

Complete Section 4 of the LMO application form using the code LMOTRA. The amount applied for should be an estimate of 75% of the cost of training but the claim will be limited to the amount on the application.

Eligibility criteria

Land managers (including farmers, crofters and foresters) or an employee, including an immediate family member who is actively involved in the business. People receiving training must be 16 years of age or older.

A training provider recognised by Lantra - the Sector Skills Council for environmental and land based industries - must deliver the training. Agricultural and other colleges offer a wide selection of eligible training courses, as do other training providers. Information about relevant courses should be obtained directly from the training providers in the first instance.

What costs could be supported

We will pay 75% for the actual cost of one or more training course (net of VAT, unless the business is NOT registered for VAT) up to a maximum of £500 (or lower if your available allowance is less) per scheme year.

Inspections/Verification

You must obtain and retain for inspection receipts showing the course provider, type of course and the cost.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August of the year following application. The evidence you provide must include a detailed invoice from your training provider which shows the cost of the courses. The name of the training provider and title of the course should be shown on the invoice as we will check this to make sure the course is eligible.

Skills Development - Examples of Suitable Training Courses

USE OF FARM AND FORESTRY ADVISORY SERVICES

Option 2 - Business audit

What this is about

This option recognises that planning is an essential part of successful business management. It encourages you to proactively plan and develop your business by taking the time to undertake an environmental and/or financial audit or health check of your current business arrangements.

What this will achieve

The audit will provide you with a clear picture of your business, which in turn will enable you to plan more effectively for the future.

What you must do

This funding is available to all land managers who complete an eligible audit. To be eligible, an audit must be a comprehensive examination of the environmental and/or financial management of your business. Examples of eligible audits will include:

Examples of eligible audits

A. Linking Environment And Farming audit - The LEAF Audit is now available online at www.leafaudit.org . It includes all aspects of Integrated Farm Management.

The Audit is divided into eight sections:

• Organisation and Planning
• Soil Management and Fertility
• Crop Protection Pollution Control and Management
• Animal Husbandry
• Energy Efficiency
• Landscape and Nature Conservation
• Community Relations

Each section can be completed separately or as a whole.

B. Small Business Advice Service - The Small Business Advice Service(sbas) provides a number of downloadable business planning documents - spreadsheets and forms (templates), that can be used to guide you through the business planning process. These plans have been developed by Enterprise Agencies to help their clients develop initial business plans - they are easy to use, practical and well proven.

There are two different user guides addressing;

• New businesses ( http://www.smallbusinessadvice.org.uk/busplan/startup5plan.asp )
• Existing businesses ( http://www.smallbusinessadvice.org.uk/busplan/myob.asp )

C. SEPA - The Four Point Plan contains simple guidance on how to reduce dirty water around the farm, improve nutrient use, carry out a land risk assessment for slurry and manure and manage your water margins. The pack has been developed with guidance from working farmers, information from the Scottish Government Code of Good Practice for the Prevention of Environmental Pollution From Agricultural Activity (the PEPFAA Code) and current scientific research to benefit your business, minimise the risk of pollution and improve environmental standards.

The first three sections of The Four Point Plan include calculations that can be applied to your farm. These "Working it out" sections will help you to;

• estimate the amount of dirty water and rainwater produced around the steading and its contribution to storage
• know the nutrient value of slurry and manure produced by housed livestock
• draw up a risk assessment for spreading manure and slurry on your land

You can use this information to review current practices, identify any financial savings and reduce pollution risk from your farm.

Who can apply

This funding is available to all land managers who complete an eligible audit.

How to apply

Complete Section 4 of the LMO application form using the code LMOBSA. The amount applied for should be an estimate of 50% up to a maximum of £150 of the cost but the claim will be limited to the amount on the application.

Eligibility criteria

Support will be available to land managers who provide evidence that an environmental audit or a business audit of their land based business has been undertaken.

If you undertake your own audit you must provide details of the name and number of audits you have completed and the time taken to complete them. If you employ an advisor to conduct the audit you must provide receipted invoices. We will also pay membership costs for LEAF or similar.

Applicants will have to provide evidence that the audit has been completed and give details of the audit undertaken. A paper copy of the audit must be available for inspection.

If you receive funding under this option your business must meet the requirements of cross compliance and Good Agricultural and Environmental Condition ( GAEC) and Occupational Safety Standards.

What costs could be supported

The payment covers the cost of a fee for an audit, cost of an advisor to complete an audit, membership of LEAF or similar and/or your time to complete each audit based on a labour rate of £7.82 hour.

Rate of support

We shall pay 50% of cost up to a total of £150

Inspections/Verification

To be eligible for payment you must provide details of the name and number of audits you have completed and the time taken to complete them. If it is an online audit you must provide details of the website.

Hard copies of the audits must be retained for 5 years and made available to inspecting officers.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August of the year following application. The evidence you provide must include a detailed invoice or timesheets.

Option 3 - Nutrient Management Plan

What this is about

The aim of the measure is to improve nutrient planning and nutrient management and in this way to reduce diffuse pollution from farm land.

What this will achieve

This option will encourage the best use of nutrients from inorganic and organic fertiliser (including slurry and farmyard manure) by matching applications to crop requirements. It should thus reduce the losses of nutrients to the environment.

What you must do

Implement nutrient planning and management on all the arable land and improved grassland of the farm. Produce a nutrient management plan which must cover the following points:

• Carry out soil testing in selected fields on a 3 to 5 year cycle to determine soil pH, nutrient status (eg phosphates (P) and potash (K)) and trace elements (eg magnesium);
• Calculate nutrient requirements of both arable and grass crops eg. nitrogen (N), P, K, and trace elements. This should take account of the soil analysis results, the nutrients available from previous inputs and the cropping history;
• For N, follow the Scottish Agricultural College ( SAC) recommendations in the Technical Note T516 "Nitrogen recommendations for Cereals, Oilseed Rape and Potatoes".
• For P and K, follow SAC Technical Note T308 "Removal by crops and P, K balance sheets";
• Keep records of the quantities and date of application of mineral fertiliser (eg 20:10:10), farmyard manure and slurry applied to the field. This should take account of the levels of N, P and K contained in organic manures. Tables of typical values for total N, P and K (and potentially available P and K) in manure and slurry are available in the 4 Point Plan and the PEPFAA Code;
• Operate buffer areas if there is a watercourse (this includes ditches), spring or borehole in or beside any of the fields. (This may not require any action if the area is already part of a buffer area because of an agri-environment scheme or set-aside.) If you are eligible for the measure, you may apply for the Creation and management of water margins and enhanced riparian buffer areas options under RDC Rural Priorities.

You will also need to:

• Keep records of no-spread zones on arable land or improved grassland. For further guidance, you may wish to consult the 4-Point Plan (Ref: www.sac.ac.uk/4pp );
• Apply fertiliser at times which will promote maximum nutrient uptake by the crops.

The production of a simple Risk Assessment for Manure and Slurry ( RAMS) is an easy way to plan applications of manure and slurry whilst following good agricultural practice and reducing pollution risk. The 4 Point Plan provides guidance on the preparation of a RAMS.

Who can apply

Land managers in Scotland farming land outwith a Nitrate Vulnerable Zone ( NVZ).

Plans should normally cover a 3-5 year period. The commitment period will be for the growing season; a new plan may be applied for each year.

How to apply

Complete Section 4 of the LMO application form using one of the following codes. The code required if a professional advisor is to prepare the plan is LMONUMA. The amount applied for should be an estimate of 40% of the cost but the claim will be limited to the amount on the application. If you prepared your own plan then enter LMONUMB. The amount applied for should be the fixed sum of £150.

Eligibility criteria

The plan must cover all arable land and improved grassland outwith the NVZ for the business. If the farm land is in an NVZ manure and fertiliser plans are already required and therefore plans covering land within an NVZ are not eligible under this option. Where part of a farm is in an NVZ and part is outside, an application may be made.

What costs could be supported

The cost of producing a nutrient management plan.

Rate of support

If the nutrient management plan was prepared by a professional adviser, 40% of the cost will be payable up to a maximum of £300 per business.

If the applicant prepares the plan rather than employing a professional adviser, a fixed sum of £150 per business will be payable.

Inspections/Verification

At inspection the inspector will expect to see

• Nutrient management plan
• Soil test results
• Your cropping records
• Records showing dates applied, amounts and types of organic and inorganic fertiliser applied to your fields
• Calculations of current crop nutrient requirements
• A map showing no-spread zones

The plan should cover all the arable land or improved grassland on the farm.

The plan should identify individual fields and involve an assessment of the fertiliser needs for the crops in those fields.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August in the year following application. The evidence you provide must include a detailed invoice if the plan is prepared by a professional adviser.

List of links to relevant technical guidance

Scottish Agricultural College ( SAC) recommendations in the Technical Note T516 "Nitrogen recommendations for Cereals, Oilseed Rape and Potatoes". This also contains details on the availability of nitrogen from the application of livestock manure.

SAC Technical Note T308 "Removal by crops and P, K balance sheets" for P and K.

The 4-Point Plan (Ref: www.sac.ac.uk/4pp ) can be found on the SAC farm business web page ( http://www.sac.ac.uk/consultancy/fbs/publications/fourpointplan/ ).

Option 4 - Modernisation through electronic data management for Agriculture

What this is about

This option is being introduced to help land managers to increase their use of new technologies by supporting the initial set up costs which are often a barrier to uptake.

What this will achieve

This option will improve the competitiveness of agricultural holdings through the use of new technology, including electronic hardware and software. It should improve business efficiency and the overall economic performance of agricultural businesses.

What you must do

Support is available for the purchase of electronic equipment for two different options

Option (a) - Electronic recording equipment for livestock production

• electronic ear tag readers from which information can be gathered and downloaded for management purposes.
• electronic weigh cells and electronic recording equipment from which information can be gathered and downloaded for management purposes.
• compatible software which can utilise the downloaded data from the purchased electronic ear tag readers, electronic weigh cells and electronic recording equipment or from any other source.

Option (b) - Precision farming equipment

• precision farming equipment (e.g. GPS site mapping equipment) from which information can be gathered and downloaded for management purposes.
• precision farming equipment which controls inputs (e.g. fertilisers) based on site specific data from GPS site mapping equipment or equivalent.
• compatible software which can utilise the downloaded data from eligible precision farming equipment.
• GPS site mapping equipment

Who can apply

All agricultural businesses.

How to apply

Complete Section 4 of the LMO application form using one of the following codes. The code required for option (a) is LMOELP and for option (b) enter LMOEPF. The amount applied for should be an estimate of 40% of the cost but the claim will be limited to the amount on the application.

Eligibility criteria

The purchased items must be;

• New (second hand equipment or software is not eligible)
• Paid for within the scheme year
• Maintained in working condition and retained for 5 years from date of purchase

What costs could be supported

We will provide support for the purchase of the equipment listed above.

The purchase of Personal Computers or laptops is not eligible for support under this option.

Rate of support

We will pay for 40% of the actual cost for each of the options (a) and (b) up to a maximum of £1000 per option a year.

We will also support individuals for up to 40% of their share of the actual cost of equipment and software for each option, up to £1000 a year, where the eligible purchase has been made in collaboration with one or more individual businesses.

Assistance under each of the options can only be claimed once in any 5 years.

The collaborative element is not separate from the rest of the option, e.g. If a land manager purchases weigh cells on his own and an electronic ear tag reader with his neighbour he can claim for both items at the same time as long as the claimed amount does not exceed £1000. He has to provide evidence each purchased item is eligible.

Inspection/Verification

The items purchased must be retained in working order for 5 years unless you can provide evidence that:

i. force majeure applies; or
ii. the items have been replaced with an eligible item of equivalent or higher specification which is in working order.

You must obtain and retain receipted invoices showing the supplier, description of the item, the cost of the item and payment for the item. If all or some of the equipment has been purchased in collaboration with other individuals and businesses, you must provide evidence of the supplier, a description of the item, the cost of the item and payment of your share of the cost.

The equipment must be available for inspection even if it has been purchased in collaboration with other individuals or businesses. Where applicants have purchased equipment together we will only be inspecting the selected individual's documentation and the equipment.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August in the year following application. A detailed invoice for your purchase (or your share of the purchase) must be submitted in support of your claim for payment.

Photograph courtesy of Farmers Weekly

Option 5 - Management of tree stands for seed production

What this is about

The quality of timber produced is a key element in the competitiveness and economic viability of the forest industry. The use of genetically appropriate nursery stock is an important way of enhancing timber quality.

This grant will support seed stand registration and seed stand improvement, which will help to stimulate supply of both genetically selected and locally native seed origins.

What this will achieve

The use of genetically appropriate planting stock will:

• improve the yield of good quality timber;
• encourage the use of locally sourced seed and conserve local genetic resources;
• improve ability to adapt to climate change in Scotland's woodlands;
• provide economic opportunities, especially in remote rural areas around the production of local tree stocks.

What you must do

Register local seed stands and carry out appropriate improvements to seed stands.

You must prepare a plan for the improvement of registered seed stands to show how the proposed work will promote seed production and facilitate seed collection.

The proposed costs must reflect the specifications required to meet the appropriate management objectives (eg: the different specifications for removing dangerous large trees and for removing small single trees should be reflected in the rates, and overall proposed costs, for the 2 activities)

Who can apply

All land managers of forested land.

How to apply

Complete Section 4 of the LMO application form using one of the following codes. The code required for Registration is LMOSSR and for Management enter LMOSSM. The amount applied for should be an estimate of 50% of the cost but the claim will be limited to the amount on the application.

Eligibility Criteria

Stands proposed for registration must be of quality timber and/or native woodland, comprising locally native species.

Stands must be 1 hectare or greater.

Seed stand improvement work must only be undertaken in registered seed stands.

Any tree removal must conform with Forestry Commission's tree felling requirements as per the Forestry Act 1967.

What costs could be supported

Support will be provided for:

• preparatory work and documentation gathering towards the registration of seed stands for quality timber production and/or locally native sources for native woodland planting.
• removal of trees of poor form, where suitable.
• tree crown release for seed production.
• brashing and clearance of access routes for seed collection.

Rate of support

The payment rate for all the above options will be at 50% of the actual costs, based on receipted invoices and registration documentation. Seed stand improvement costs is limited to a maximum of £300/ha.

Each hectare can only be claimed once every 3 years.

Inspections/Verification

We will inspect registration documents and visit seed stands to ensure that the work in the seed stand improvement plan has been carried out effectively. The customer must be able to produce documentation to prove that the stands have been registered with the Forestry Commission under the Forest Reproductive Material (Great Britain) Regulations 2002.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August in the year following application. The evidence you provide must include detailed invoices.

List of links to relevant technical guidance

Forest Reproductive Material: Regulations controlling seed, cuttings and planting stock for forestry in Great Britain.

http://www.forestry.gov.uk/forestry/INFD-66SG3X

Seed Sources for Planting Native Trees and Shrubs in Scotland, FCS Guidance Note 2006.

Forestry Commission Tree Felling - Getting Permission http://www.forestry.gov.uk/forestry/infd-5zgksj

Option 6 - Modernisation through electronic data management for Forestry

What this is about

This option is being introduced to help land managers to increase their use of new technologies by supporting the initial set up costs which are often a barrier to uptake.

What this will achieve

This option will improve the competitiveness of forestry holdings through the use of new technology, including electronic hardware and software. It should improve business efficiency and the overall economic performance of forestry businesses.

What you must do

Support is available for the purchase of the following types of electronic forestry planning equipment:

• GPS site mapping hardware and software;
• electronic callipers for the purposes of timber volume measurement;
• compatible software which can utilise the downloaded data from (a) and/or (b) or any other source;
• GIS software for the purposes of the production and management of long-term forest plans; and
• "Ruggedised" notebook PCs designed for electronic data capture in "outdoor/all weather" working conditions.

Who can apply

All land managers of forestry businesses.

How to apply

Complete Section 4 of the LMO application form using the code LMOEFP The amount applied for should be an estimate of 40% of the cost but the claim will be limited to the amount on the application.

Eligibility criteria

The purchased items must be;

• New (second hand equipment or software is not eligible)
• Paid for within the scheme year
• Maintained in working condition and retained for 5 years from date of purchase

What costs could be supported

We will provide support for the purchase of electronic forestry planning equipment listed above.

Rate of support

We will pay for 40% of the actual cost of the option up to a maximum of £1000 per option a year.

We will also support individuals for up to 40% of their share of the actual cost of equipment and software for each option, up to £1000 a year, where the eligible purchase has been made in collaboration with one or more individual businesses.

Assistance under each the option can only be claimed once in any 5 years.

The collaborative element is not separate from the rest of the option, e.g. If a land manager purchases a "Ruggedised" notebook PC on his own and electronic callipers with his neighbour he can claim for both items at the same time as long as the claimed amount does not exceed £1000. He has to provide evidence each purchased item is eligible.

Inspection/Verification

The items purchased must be retained in working order for 5 years unless you can provide evidence that:

i. force majeure applies; or
ii. the items have been replaced with an eligible item of equivalent or higher specification which is in working order.

You must obtain and retain receipted invoices showing the supplier, description of the item, the cost of the item and payment for the item. If all or some of the equipment has been purchased in collaboration with other individuals and businesses, you must provide evidence of the supplier, a description of the item, the cost of the item and payment of your share of the cost.

Both the equipment and the receipted invoice must be available for inspection even if it has been purchased in collaboration with other individuals or businesses. Where applicants have purchased equipment together we will only be inspecting the selected individual's documentation and the equipment.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August in the year following application. The receipted invoice for your purchase (or your share of the purchase) must be submitted in support of your claim for payment.

Option 7 - Access Creation for Sustainable Forest Management

What this is about

This grant supports the creation of new access routes or the improvement of existing access routes into woodlands which are not currently served by a suitable and adequate access route thereby preventing the harvesting and extraction of timber. The grant also supports the development of an internal access infrastructure. This also includes processing areas and loading bays. Adequate access to woodlands is an essential requirement to ensure sustainable forest management.

What this will achieve

Improved access is to encourage thinning and other silvicultural operations in woodlands. This offers significant biodiversity benefits, enhanced public access and increases the economic potential of the standing crop due to improved timber quality.

What you must do

Construct access routes leading to or within woodlands that will benefit from silvicultural thinning in order to extract timber.

• The roads must be built to a standard capable of enabling the access and movement of forestry equipment and taking timber haulage vehicles.
• You will maintain the roads as part of the forest road network and fully restore the area after harvesting activity.
• Road building activity must conform to the requirements of the UK Forestry Standard.
• The construction of access routes must be appropriate and in proportion to the ground condition, the size of woodland and the volume of harvesting timber. This may mean that in small woodlands where timber volumes are small or where access is particularly difficult a forwarder/trailer route together with a loading bay would be more appropriate.

Who can apply

All land managers of existing woodlands.

How to apply

Complete Section 4 of the LMO application form using the code LMOSFM. The amount applied for should be an estimate of 50% of the cost but the claim will be limited to this amount.

Eligibility criteria

All applications must be for woodlands greater than 1 hectare where the objective is to carry out thinning, small scale clear felling, continuous cover forestry & selective felling.

Road building activity should conform to the requirements of the UK Forestry Standard.

What costs could be supported

Support will be provided for:

• Construction of external and/or internal access routes (metre)
• Construction of lay-bys, turning areas, loading bays and/or bell mouth junctions (m_)
• Gates, security barriers/obstacles, cattle grids (each)

Rate of support

The payment rate for all the above options will be at 50% of the actual costs based on receipted invoices. The proposed costs must reflect the specifications required to meet the appropriate management objectives (for example the different specifications for an external access route for road worthy vehicles and for an internal access machine track should be reflected in the rates, and overall proposed costs, for the 2 activities)

Inspections/Verification

Inspector will ensure that completed work meets UK Forestry Standard.

Evidence

We will send you a claim form which you must submit along with the supporting documentation by 31 August in the year following application. The evidence you provide must include detailed invoices.

List of links to relevant technical guidance

The UK Forestry Standard - www.forestry.gov.uk/pdf/fcfc001.pdf/$FILE/fcfc001.pdf

The Forestry Civil Engineering Business Unit of the Forestry Commission has a specification for Forest Roads (see http://www.forestry.gov.uk/forestry/infd-57cfyj)

Option 8 - Membership of food quality assurance schemes

What this is about

This option recognises the growing demand for quality produce both in Scotland and internationally. The quality of our produce is a key element in ensuring Scotland has a sustainable and competitive agricultural sector.

What this will achieve

Membership of food quality assurance schemes, certified to EN45011 level, not only improves the quality of our produce but also provides reassurance to consumers that their food is being produced to a high standard.

What you must do

Recognise the importance of high-quality production and become a member of a quality assurance or organic certification scheme.

Who can apply

All land managers are eligible to apply for this option.

How to apply

Complete Section 4 of the LMO application form using the code LMOQAS entering the total applied for under this option. Complete Section 5 giving the details of the individual food quality assurance and organic schemes you wish to apply for.

Eligibility criteria

Support will be available to farmers and crofters who are members of one, or more of the following food quality assurance schemes, providing the schemes have been certified to EN45011 level. If a scheme is not certified by 1 February 2008 its members will be ineligible to receive payment through this option.

The following food quality assurance schemes are eligible for support:

• Lion Eggs
• Linking Environment and Farming ( LEAF) marque
• Freedom Foods
• Scottish Quality Wild Venison Assurance Scheme

The following organic certification schemes are eligible for support:

• Scottish Organic Producers Certification Scheme
• Soil Association Assurance Scheme
• Organic Food Federation
• Organic Farmers and Growers - Organic Assurance Scheme
• Biodynamic Agricultural Association

If you are participating in the Organic Aid Scheme or are receiving funding through the organic conversion and maintenance measure in Rural Development Contracts - Rural Priorities or join this during the same year, you cannot claim funding for membership of any of the organic schemes listed above.

What costs could be supported

The payment will be paid annually as a one off payment. The claim, which should be supported by a receipted invoice should be sent to your local Area Office.

Also note if you have applied to have a proportion of your membership of LEAF paid as a result of the Business Audit option, then you will only be eligible to receive the certification costs for the LEAF marque under this option.

Rate of support

We will pay 50% of the joining fee or ongoing membership subscriptions of a food quality assurance scheme up to a maximum of £150 ( except VAT unless you are not registered for VAT). Importantly, you can
join more than one quality assurance scheme per year. We will pay up to £150 for each scheme you are a member of.

Evidence

You must be able to provide evidence of payment of the cost of membership incurred during the scheme year for which you are applying for support. This has to be provided for each scheme you claim payment for.

We will send you a claim form which you must submit along with the supporting documentation showing that you are a member of an eligible scheme. You must do this by 31 August 2009. The evidence you provide must include your membership number, your name and address and the fee you have paid. We will check this against the information held by the relevant organisations.

Inspection/verification

Food quality assurance schemes are verified through regular independent inspections to ensure that farmers and growers are meeting their standards of production. Therefore, you will be expected to keep all relevant paperwork pertaining to the scheme(s) which should be available for inspection at any time.

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