Farming Transformation Fund Adding Value
May 2022
Introduction Following the launch of the Farming Investment Fund through the Farming Equipment and Technology (FETF), the Water Management and Improving Farm Productivity grants of the Farming Transformation Fund (FTF), in 2021, DEFRA has published the manual for the third theme of the FTF, Adding Value
What is the Adding Value Grant? As in the previous round of the Farming Transformation Fund, DEFRA is making the manual for the next theme; ‘Adding Value’ available before its launch in June. Once open, the application period will close six weeks later. The grant pays for capital items which enable adding value to eligible agricultural products, after they have been harvested or reared. The manual can be found at: https://www.gov.uk/government/publications/adding-value-grant-for-farmers-toimprove-crops-or-livestock/about-the-adding-value-grant-who-can-apply-and-what-the-grant-can-pay-for
What projects are eligible? Eligible agricultural products include: • • •
arable and horticultural crops (including food and non-food crops). livestock products (including dairy, meat, skins, and hides). non-food crops (including fodder, fibres, and flowers).
The Rural Payments Agency (RPA) will prioritise funding for projects that: • • • • • •
increase, improve or introduce new processing capabilities. grow businesses - to improve business resilience. process products for the first time. shorten supply chains. encourage collaboration and partnerships. improve environmental sustainability.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
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Eligible capital items include: • • • • •
equipment for preparing or processing edible agricultural products for added value sales. equipment for ‘second stage’ processing of grain - for example, colour sorting, blending. equipment for processing non-edible agricultural products into new products (for example, flax, hemp, wool, hides, and skins). equipment for retailing eligible agricultural products (for example, vending machines or display facilities). premises for the preparation or processing of added value agricultural products, including associated integral storage areas.
Other eligible costs include the installation and commissioning of eligible capital items. Equipment using an electric or renewable energy source over those using fossil fuel will be prioritised. Second hand items may be eligible for funding, subject to certain criteria. Stand-alone storage projects are not eligible for the Adding Value grant. Only costs for integral storage areas (for example, for goods inward/outward) as part of wider processing projects are eligible, and these costs must not be more than 50% of the value of the grant. Any applications involving building works that include storage areas must clearly separate out and detail the costs of the storage area works to make sure the 50% criteria are met. The grant does not cover general costs associated with agricultural businesses, land/building/equipment, financial, or business running.
What is available? Under this scheme, £30 million will be available to support farmers and growers to process, diversify and addvalue to their products. It will offer grants of between £25,000 and £300,000 for up to 40% of eligible project costs.
What is the Application process? The grant is competitive and there is an online checker and if a project scores high enough applicants will be invited to submit a full application. If successful, applicants will have until 31st January 2024 to submit a full application.
Fisher German LLP is a limited liability partnership. Registered in England and Wales. Registered Number: OC317554. Registered Office: The Head Office Ivanhoe Office Park, Ivanhoe Park Way, Ashby-De-LaZouch, Leicestershire, England, LE65 2AB. A list of members’ is available for inspection at Head Office.
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