Introduction
Diversification is a way of improving the viability of existing agricultural businesses, and of keeping farmers and their families within the sector even where the farm business does not provide sufficient income on its own.
What will this achieve
The aim of this measure is to encourage farmers and their families to set up or expand non-agricultural enterprises to complement or supplement their income from existing agricultural activities, with the intention of keeping the family within the rural community. It will also create employment opportunities, provide benefits and improve access to, or widen, the available range of services and facilities in the local community and beyond.
What you can do
Under this measure you can receive support for diversification into any non-agricultural enterprise where it can be shown that there is a demonstrable market for the proposed product or service and that you have, or can acquire, the skills and resources to provide these on a commercial basis.
Who can apply
Farmers and other members of the farm household, with exception of farm workers, actively involved in an agricultural activity at the time of application.
Eligibility criteria
You must be able to demonstrate a proven market for your proposals in your area, and to show that the diversified business will improve the household income stream and thus complement the farm business. Projects eligible for funding will include:
- new or upgraded buildings or structures
- changes in land use from agricultural to non-agricultural uses
- the development or upgrading of services or other infrastructural elements
- new machinery or equipment
- the acquisition or development of information technology to help with the diversified enterprises
- general costs related to professional fees (e.g. architects/engineers/consultants).
What costs could be supported
Operations eligible for support are:
- supply and sale of renewable energy. While there is no limit on energy capacity, projects designed mainly for own agricultural business consumption should apply through the appropriate Axis 1 option: Renewable Energy - Agriculture
Applicants seeking funding for renewable energy under this option should be aware that an Environmental Impact Assessment (EIA) is a likely precondition. This can be both expensive and time consuming. Applications should be planned with this is mind.
- provision of leisure, recreation and sporting facilities
- retailing of processed agricultural products
- processing of forest products
- provision of other commercial services (illustrative list only):
Commercial storage
Farrier
Gardening
Sheep shearing/scanning
- provision of or upgrading of existing tourism accommodation and conversion of redundant farm buildings into rent*
*Projects involving provision of tourist or residential letting accommodation must not include more than 20 bed spaces. Housing for rent will require a lease agreement of not less than 6 months. It does not include rent to a member of the immediate family of the eligible applicant or any of the employees of the eligible business. Development will have a recognised demand and be consistent with local housing strategies.
Note that provision of tourist accommodation is not subject to the 6 month minimum period specified above.
To ensure value for money we require you to provide 2 competitive quotes for any capital items applied for which are based on actual cost. If, however, you are seeking grant support towards something so specialised it is only available through 1 source then we would accept 1 quote. Please see the guidance on quotes and estimates for more information.
Rate of support
The maximum amount of assistance for this measure will be a variable capital grant, dependent on requirement to allow the project to go ahead, with a ceiling of 50% of eligible costs.
Inspections/verification
You must complete the work as described in your approved proposal including compliance with any notified conditions of statutory consents. It is a condition of funding that you allow any person, duly authorised, to have access to allow an inspection to take place. An inspection may take place at any reasonable time either before or after completion.