Rural Business Support  

  Farm Business Development Scheme  

The Farm Business Development Scheme (FBDS) is an innovative business development scheme for farmers and their immediate family members. The Scottish Executive Environment and Rural Affairs Department (SEERAD) fund the scheme.

The FBDS can provide grant assistance towards the development of new diversification enterprises or expansion of existing diversification enterprises, based either on or off farm.

Projects must have the potential to increase and broaden overall income for applicants. They should result in self-sustaining economic activities, strengthening the income generating capacity of the farming family.

The FBDS is a competitive and cash limited scheme.

Eligibility

You can apply to the scheme if you have an eligible agricultural business. The proposed project must be located in the FBDS area.

Immediate family members, resident on or adjacent to the agricultural unit, are also eligible to apply.

You must have actively engaged in agriculture for a minimum period of two years as either owner-occupier or tenant.

The scheme is open to full-time or part-time farmers running an eligible agricultural business.

Applications

Applications are considered by Project Assessment Committees (PACS) chaired by SEERAD. The PACS area expected to convene three or four times per year to assess applications.

Approved projects will be monitored for five years (seven in the case of residential letting projects) after the final payment of grant.

Financial Assistance

The maximum grant assistance is £25,000 per eligible business, except for collaborative projects, in which case the maximum level of assistance per eligible business is £30,000.

Collaborative projects consist of a minimum of three eligible persons, each linked to a separate eligible agricultural business.

Applicants may submit more than one application. If approved, project awards will be aggregated and restricted to the maximum available. If approved, project awards will be aggregated and restricted to the maximum available to the eligible agricultural business.

The level of grant awarded to non-agricultural diversification projects is up to 50%. Diversification within agriculture is restricted to a maximum grant rate of up to 50% for projects within Less Favoured Areas (LFAs) and up to 40% for projects in non-LFAs.

In addition to the capital grants, approved training for successful projects may be grant aided at a rate of up to 50% of agreed training costs. Such grant is outwith the capital grant ceiling.

Eligible Projects

The FBDS may provide assistance towards the cost of a wide range of diversification projects. The list below is non prescriptive:

  1. Alternative Agricultural Production
  2. Leisure, Recreation and Sporting Facilities
  3. Retailing of Processed Agricultural Products
  4. Processing of Forest Products
  5. Residential Letting
  6. Rural Services
  7. Tourist Accommodation
  8. Tourist Facilities
1. Alternative Agricultural Production (Agricultural Diversification)

Assistance may be given for:

2. Leisure, Recreation and Sporting Facilities

Assistance may be given for:

3. Retailing of Processed Agricultural Products

Assistance may be given for:

4. Processing of Forest Products

Assistance may be given for:

5. Residential Letting

Assistance may be given for:

Note: Housing for rent does not include rent to a member of the immediate family of the eligible applicant submitting the business proposal.

6. Rural Services

Assistance may be given for:

Note: The examples above are not prescriptive. If your proposal is not listed above, you should contact your local Project Officer to determine the eligibility of your project.

7. Tourist Accommodation

Assistance may be given for:

Note: Applicants will be required to demonstrate local market need for the accommodation facility and ensure the development is consistent with local tourist strategies. Applicants will also be required to provide a marketing plan. The accommodation should comply with specific Scottish Tourist Board (visitscotland) quality assurance standards.

8. Tourist Facilities

Assistance may be given for:

Note: New eligible measures may be introduced over the duration the Scheme. Equally, some measures eligible at the beginning of the Scheme period may become ineligible. You should always check the latest position with the Project Officer.

Call 01698 456329 to speak to the SEERAD Project Officer (Marion Currie) for this area and to obtain an Adobe Acrobat file explanatory booklet and Adobe Acrobat file application form

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  Agricultural Processing and Marketing Grants Scheme  

The Processing and Marketing Scheme will be available to all agri-food processors from on-farm operations through to large brand leaders.

It offers capital and non-capital assistance to allow producers and processors to increase quality, revenue and market share at home and abroad as well as encouraging the development of new and innovative products. Grants under the scheme will vary, providing up to a maximum 40 per cent of eligible project costs.

Call 01698 456329 to speak to the SEERAD Project Officer (Marion Currie) for this area.

Information is also available from SEERAD, Pentland House, 14 Robb's Loan, EDINBURGH EH14 1TY Tel: 0131 244 6372 (FBDS) 0131-244 6388 (Agricultural Processing and Marketing Grants Scheme)

  Farm Diversification and Planning Permission  

A Guide to Farm Diversification and Planning Permission in Scotland
In some cases planning permission will be required for a farm diversification project. This site explains the process you should go through if you want to diversify your farm business, and highlights some examples of successful projects. It is also available as a booklet from the SEERAD Project Officer.

Alternatively, for development advice, please contact your local South Lanarkshire Council Planning & Building Control office:

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