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Restructuring Agricultural Businesses
This funding option is aimed at those Scottish farmers wishing to change the scale or nature of their farm business, or make significant changes to existing business practices, including diversification into alternative crops and livestock
WHAT CAN I GET SUPPORT FOR?
Under this funding option, assistance is available towards the restructuring and/or diversification, of land-based businesses. Part of this option is concerned with the diversification of agricultural activities and in the context of this option diversification specifically refers to the adoption of alternative forms of agricultural production, including alternative crops and livestock. Whilst the Scottish Government stress that their list of types of enterprises is purely indicative they include:
- Deer
- Fibre Goats/Sheep
- Rabbits
- Worms
- Bees/honey
- Wild Boar
- Snails
- Free range poultry or livestock
- Biomass
- Wild flower seed production and use
- Herbs
- Soft fruit
- Vegetables
- Mushrooms
- Horticulture
WHO CAN APPLY?
Only agricultural businesses can apply but they must provide evidence that a business review has been undertaken, including a SWOT, with an options appraisal that shows that the proposed diversification is part of a long term strategy to increase business viability and competitiveness. It will also be essential for applicants to prove there is a market opportunity (without displacement of existing businesses) and market demand for the new product / service being provided.
WHAT SUPPORT CAN I GET?
The support for agricultural diversification is aimed at supporting capital investments essential to the project. Financial assistance awarded will be project specific and will have variable rates (%) of award that are determined by means testing. There is an upper ceiling of 40% of eligible costs in non-LFAs and 50% in LFAs (with a 10% premium on the ceilings for investments by young farmers). The Scottish Government suggest that capital investments eligible for funding will include costs related to:
- new or upgraded buildings or structures
- the development or upgrading of services or other infrastructural elements
- new machinery or equipment for improving efficiency or adding value to products or processes
- the acquisition or development of information technology to assist restructuring
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.