Farm Diversification

The objectives of this option are to:

(a) keep families within rural communities by encouraging non-farm businesses to diversify or add value to their existing enterprises in order to complement or supplement their income from traditional activities
(b) encourage potential entrepreneurs to set up or develop unique businesses which will contribute to the vibrancy of rural communities, create employment opportunities and/or meet market demand for the provision of certain facilities and services in rural areas.

WHAT CAN I GET SUPPORT FOR?
This funding option is designed to provide assistance towards the setting up or expansion of any non-agricultural rural enterprise.  The applicant must show that there is a market for the proposed product or service and that they have, or can acquire, the skills and resources to provide these on a commercial basis.  The Scottish Government suggest that non-agricultural enterprises eligible for support include:

• 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
  • Contracting (building, fencing, etc.)
  • Farrier
  • Gardening
  • Sheep shearing/scanning
• provision of (or upgrading of) existing tourism accommodation (no more than 20 bed spaces) and conversion of redundant farm buildings into rent (lease must be more than 6 months excluding immediate family and workers).  Developments must also have a recognised demand and be consistent with local housing strategies (available from your Local Authority's website).

WHO CAN APPLY?
Existing micro enterprises (must have fewer than 10 workers and turnover of less than €2m) or anyone wishing to set up a new micro enterprise in a non agricultural business off-farm

WHAT SUPPORT CAN I GET?
There is a ceiling of 50% of eligible costs for this option, although applicants should note that the application process is competitive and level of award will be project specific (being dependent on the requirement to allow the project to proceed). The types of costs the Scottish Government suggest are eligible include:

• new or upgraded buildings or structures
• the development or upgrading of services or other infrastructural elements
• new machinery or equipment including information technology
• general costs related to professional fees (e.g. architects/engineers/consultants/ statutory consents)

REGIONAL PRIORITIES?
Applicants are reminded that they must demonstrate how their proposal will help deliver the desired outcomes set out at local level as expressed in the Regional Priorities (clickable map).  As such it is recommended that applicants discuss their proposal with their local consultant at an early stage.