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Business Audit

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. Some examples of eligible audits are listed below.

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.

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.

A maximum funding limit is set by EC regulations for the use of advisory services. See Financial limits for further details.

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.

Business audit - 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. 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.

Page updated: Monday, July 6, 2009