£30m grant funding for farm diversification announced

Defra have recently announced the release of the third Farming Investment Fund Theme: Adding Value. This grant is available to agricultural businesses to help to fund diversification projects enabling value to be added to eligible products.

This new grant funding will be of interest to both existing diversified businesses and those looking to diversify for the first time.

The funding enables the purchase of either new equipment or second hand equipment providing the supplier is able to warrant that the item has not been previously funded with public finding, is fit for purpose, does not cost more than the equivalent new item and it is expected to last for at least 5 years.

As part of this theme the grants can also be used to fund alterations to electrical supply systems for eligible capital items as well as one-off capital costs towards an e-commerce platform directly linked to the project.

Generous grants

Generous grants

Grants of between £25,000 and £300,000 are available for up to 40% of the eligible project costs.

Here are examples of the types of equipment available under the funding:

  • 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

To be eligible for the grant you must be a grower or other producer of agricultural products (carry out an agricultural or horticultural activity, including rearing livestock), or a business processing agricultural or horticultural products which is at least 50% owned by agricultural or horticultural producers.

The application window for the grant is due to open in June 2022 with the exact date as yet unconfirmed.

It is advisable to prepare applications as soon as possible to be in the best position to put a strong case forward for consideration at the initial eligibility and desirability check stage.

The Farming Investment Fund is a great opportunity for assistance with the initial capital burden of an investment to futureproof your business.

Get in touch

For further information and advice in relation to this grant, please do not hesitate to contact us.

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