New £60m grant pot available for businesses

The scheme replaces the Rural Enterprise Investment Programme, previously administered by the regional development agencies.

It allows up to 40 per cent funding of projects in five business areas – ‘farm competitiveness, agri-food, tourism, forestry, and micro-enterprise support’.

Defra said ‘agri-food’ meant processed and packaged produce. Micro-enterprises, meaning small businesses, would include farm spin-offs.

Defra Secretary Caroline Spelman said: “Grants may be available to help buy new processing and packing equipment. Farmers will be able to apply for grants to improve animal health and welfare and improve soil nutrients and water management.

“They can also apply for funding for accommodation and visitor services. Grant support is also available to improve the efficiency of the forestry sector.”

The pot is additional to the £20m Farming and Forestry Improvement Scheme, already announced, and there is some crossover.

Broadly speaking, the smaller pot is for smaller schemes. The new one is for projects costing at least £62,500.

Another scheme is about to come into the equation. Rural Economy Grants will favour businesses in ‘Rural Growth Networks’, where government money is being spent to overcome barriers to growth, such as poor broadband. The choice of areas for those rural growth networks is still being decided.

Paul Dennison, of Strutt & Parker at Northallerton, summed up: “The money is there but you have to go through a lot of hoops to get it. You need to do some research to find out which is the best way to present your case.”

The new fund is open to farmers, forestry contractors, woodland owners, horticultural firms and other countryside businesses. Outline applications must be submitted by April 30, 2012. Those shortlisted will be then asked to submit a full application. The work cannot start until the grant is approved.

Louis Fell, a partner in George F White at Alnwick, said: “The inclusion of tourism projects will be of particular interest. These could include development of high quality accommodation provision and upgrades where these bring clearly defined wider benefits to the local economy.”