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5.3.1.2 Measures aimed at restructuring and developing physical potential and promoting innovation
5.3.1.2.1 Modernisation of agricultural holdings
CROFTING COUNTIES AGRICULTURAL GRANTS SCHEME ( CCAGS)
Article 20 b(i)
Measure Code (121)
Rationale for Intervention
The survival of crofting is important to the retention of population in these very extensive and remote areas of Scotland because crofting families often comprise a major part of existing local communities. Croft land is the common link amongst crofters, and encouragement of beneficial use of that land for agricultural purposes contributes to population retention.
There is public benefit in crofters maintaining and protecting the landscape in these remote areas. There is benefit in producing agricultural and in particular food chain products for use locally, where they can provide the local consumer with a fresher product than that which has been transported from a great distance.
This small scale/low output farming has little impact on other larger producers, but in some cases can provide a niche product.
The potential for borrowing money to fund capital investments is limited for crofters compared to larger farming enterprises, because (a) most crofters do not own the land on which they farm and cannot provide the security for a loan and (b) by and large the nature of this part-time farming and the generally low returns make it difficult to guarantee repayments.
There is no other support scheme available to make these improvements.
Objectives of the measure
To help crofters to improve the viability of their rural businesses and to achieve other benefits such as improved animal health and welfare. This will in turn help to strengthen remote rural communities. Support is provided to the business operating on the holding in order to improve the overall performance of the holding.
Scope and actions
This measure assists the improvement of crofting agriculture through a system of agricultural grants. Support is available towards various operations broadly described as land improvement, agricultural buildings, provision of access and services and facilities for keeping livestock.
In doing so, the support will contribute to:
- maintaining and preserving an agricultural base in severely disadvantaged areas; and
- encouraging investment in the economic potential of a crofter's land.
Definition of beneficiaries
Those eligible will be limited to:
- croft tenants;
- owner-occupiers of crofts;
- other individual small farmers, who will be identified with a way of life similar to crofters; and
- groups made up of eligible people in the categories above.
Aid will be limited to land in the Crofting Counties of Scotland i.e. the former counties of Argyll, Caithness, Inverness, Ross and Cromarty, Sutherland, Orkney and Shetland.
Description of the requirements and targets with regard to the improvement of the overall performance of the agricultural holdings
Aid will be in the form of grants. The rates of grant will be set at 50% (40% in non-Less Favoured Areas) of eligible costs. The maximum grant payable in any 2-year period will be limited to €36,500 for individuals and €182,500 for groups. The private beneficiary contribution is paid for by the eligible business.
Groups of crofters are eligible for CCAGS as well as individuals. Working together for the benefit of the local community is encouraged by a higher grant ceiling for groups.
Work must not have started on the operation before approval is received from the Scottish Executive.
Aid will only be granted to eligible agricultural businesses which meet the requirements of cross-compliance and Good Agricultural and Environmental Conditions ( GAEC).
List of eligible operations:
- erection or improvement of agricultural buildings ( Investment eligible under this category of operation relates to the construction of permanent buildings for agricultural livestock, including all the usual buildings for keeping livestock and storing crops produced on the unit. Buildings for general service purposes and buildings for other kinds of livestock kept for the production of meat, milk, wool, fur or hides, and buildings associated with honey production and stabling for keeping work horses can also be supported. The provision of facilities for the sheltering of out-wintered livestock may also be eligible.);
- works associated with agricultural buildings, including yards, hard standings, dungsteads and slurry stores;
- restoration of derelict land (excluding heathland and moorland) by regeneration, re-seeding, laying down to permanent pasture, bracken control or reconditioning; ( Bracken control as an activity is only eligible when its purpose is to act as an instrument for the restoration of degraded land which is an eligible operation.);
- formation or improvement of access tracks to land improvement areas;
- field drainage including under drainage, hill drainage and ditching;
Note - All applicants are required to comply with the Environmental Impact Assessment Regulations ( EIA) which requires land managers to carry out an assessment of the impact their proposals have on the environment.
- arterial drainage;
- provision or improvement of silos (excluding grain silos);
- erection or improvement of shelters for the temporary housing, sheltering and feeding of out wintered livestock;
- provision or improvement of facilities for the organised feeding of out wintered livestock including permanently fixed troughs and feed barriers and associated concrete bases;
- provision or improvement of equipment for the handling and treatment of livestock;
- provision of fences, hedges, walls, gates or cattle grids;
- planting of shelter belts;
- provision or improvement of water supplies;
- provision or improvement of a mains electricity connection or supply;
- supply and installation of an electricity generator;
- provision of a gas supply;
- provision of electrical equipment; and
- provision or improvement of roads, bridges, culverts or boat slips (All operations under this category have to be constructed to the minimum standards needed to fulfil their intended agricultural purpose and do not relate to public infrastructure or fisheries activity.)
Note on services above - Amenity services included within the list of eligible operations are restricted to the provision or improvement of the supply of water, mains electricity connection or supply, and provision of a gas supply, and only where an agricultural need is clearly demonstrated. Wholly domestic supplies are not eligible under this operation category.
Some of these operations will provide additional benefits, in particular to reduce methane emissions.
Primary production sectors
All agricultural production sectors.
Type of investments (tangible-intangible)
Capital investment in land improvement, agricultural buildings, provision of access and services and facilities for keeping livestock.
Type of aid.
Capital grant.
Aid intensity
Maximum 50% in Less Favoured Areas and 40% in non-Less Favoured Areas
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