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With new rural grants being announced seemingly all the time, it can be a minefield knowing what is available and what would suit your business best. Stags Senior Surveyor, Sally Blowey, rounds up what we know so far.
Countryside Stewardship – Mid Tier
The scheme has been open annually for 5-year agreements since 2015, with the 2023 application window set to be the last as the scheme is phased out to make way for the new grants under the Environmental Land Management Scheme.
There are two parts to a mid-tier application. The first are revenue options; an annual payment for certain standards of management. With 82 options available, there is plenty of choice, including permanent grassland with very low inputs (£132/ha), legume and herb-rich swards (£358/ha), whole crop cereals (£554/ha) and maintenance of weatherproof traditional farm or forestry buildings (£4.03/m2). An annual claim has to be submitted to claim payment, which is paid 12 months in arrears and evidence kept to show compliance, including stock and hedge trimming records, if relevant.
The second part of the scheme is capital items, with applications in 2022 eligible to apply for up to £50,000 in boundary improvements, including stock fencing (£4.90/m), hedge laying (£9.40/m) and stone-faced bank repair (£31/m). Additional items under water and air quality are limited to a £120,000 grant, with many water items requiring catchment-sensitive farming officer approval, such as for concrete yard renewal (£27.14/m²) and roofing (sprayer washdown area, manure storage area, livestock gathering area, slurry stores, silage stores) (£62/m²).
The next application window is expected to open in February 2023 for a 1st January 2024 start date. If you are interested in the scheme then we can begin to draft an application at any time.
Capital Grants
This is a two-year agreement to carry out capital grant improvements with a maximum of £60,000 available per business, with up to £20,000 each for boundary improvements, water quality and air quality items. The items and payment rates are the same as the capital items under the Mid Tier scheme. This scheme is often a useful chance to receive grant funding for improvements you were likely to make anyway, with no ongoing obligations.
The application window is set to remain open until all the funding is allocated so there is no deadline for the current round. DEFRA will make an announcement six weeks before closing the scheme if funds look set to be allocated in full.
Those already under a stewardship agreement are generally eligible to apply as long as there are no outstanding capital works under the existing agreement.
If you are interested in this scheme then you can apply now, Stags Professional Services can advise on the options and assist you with an application.
Catchment Sensitive Farming
Previously, you have had to be in a high-priority area to access funding for higher value improvements such as roofing over open yards, renewing concrete yards and installing livestock tracks. However, DEFRA announced an expansion to the programme on 12th October meaning all areas of England can benefit from their local officers’ advice and be eligible to apply for grant funding. Grants are offered through the Mid Tier and Capital Grants, outlined above, for specific items requiring prior approval. Officers can also provide on-site advice about soil and nutrient management amongst other things. To receive advice from a local officer, an initial email should be sent to the local team outlining the advice sought; this is something that Stags can assist with.
Sustainable Farming Incentive (SFI)
Applications opened on 30th June 2022 for three standards under a three-year agreement, which can be amended every 12 months to take advantage of new standards set to be released in the coming years. The SFI is flexible to run alongside other grant funding and schemes, as long as the measures do not lead to ‘double funding’.
Applications are currently open for three standards: arable and horticultural soils (£22-44/ha), improved grassland soils (£28-58/ha) and moorland (£10.30/ha). Required actions under the improved grassland soils standard include completing a soil assessment and producing a soil management plan, testing soil organic matter, minimising bare ground by having no more than 5% of the total area of land entered into the standard left bare over winter and, for the higher payment level, establishing and maintaining herbal leys on at least 15% of land in this level.
New standards for hedgerow management, low and no input grassland and dry-stone walls, amongst others, are expected over the next three years, with the full scheme set to be available from 2025. There are currently no capital items available under the SFI.
The Sustainable Farming Incentive is one of three new environmental land management schemes being developed by the Government. The second is the Landscape Recovery Scheme, which has recently announced 22 projects covering between 500 – 5,000 ha, each delivering environmental benefits focusing on recovering and restoring England’s threatened native species and restoring England’s streams and rivers. It is envisaged that, under this scheme, multiple landowners will work together towards a common goal. Round two is expected to launch in 2023 with a new focus.
The third is Local Nature Recovery, which will support action at local level to make space for nature alongside food production such as restoring or creating species rich grassland and wetland habitats. Further details are set to be announced in 2023, with pilots to be run before a full roll-out in 2024. The scheme is expected to build on the current Countryside Stewardship schemes and will work alongside the SFI, being open to all farmers and landowners.
Basic Payment Scheme
2023 is expected to be the last time an application has to be submitted under the Basic Payment Scheme (BPS), with the scheme being phased out and payments from 2024-2027 to be made based on an average of the 2020-2022 claims. The payments under the BPS have been reducing since 2021, with a 5% reduction applied to all claims at that time and payments in 2024 confirmed to be reduced by 50%.
2023 is expected to be the last year that BPS entitlements can be traded and delinked payments will be made from 2024 with no requirement to still be farming the land after 31st December 2023. It will still be possible to register new land, make mapping changes and transfer land parcels and entitlements in 2023, with the application deadline expected to be 15th May 2023.
Lump Sum Exit Scheme
Part 1 of the lump sum exit scheme applications has now closed for those contemplating retirement to surrender their entitlements in return for an upfront payment of up to £100,000 (calculated as 2.35 times the average BPS payment received between 2019-2021).
Those wishing to proceed with their application must transfer out their agricultural land and provide evidence of this to the RPA by 30th May 2024 to qualify.
Farming in a Protected Landscape (FIPL)
FIPL will provide capital grants for landowners in an Area of Outstanding Natural Beauty (AONB) or National Park. Launched in July 2021, each area has a 3-year budget for projects that support nature recovery, mitigate the impacts of climate change, provide opportunities for people to discover, enjoy and understand the landscape and its cultural heritage and protect or improve the quality and character of the landscape or place.
Each organisation can set their own priorities and have a local officer who will assist with applications before they are reviewed by a panel. The scheme will cover up to 100% of project costs, however, this can be reduced to 40% where there is likely to be commercial gain. If there is a Countryside Stewardship rate for the proposed work then they will use this rate, otherwise applicants are advised to obtain up to three quotes. Projects that have been supported in the Tamar Valley AONB, for example, include orchard creation and hedgerow planting, creation of a community hub and farm shop and funding for courses to deliver training on traditional skills such as hedge laying.
The scheme is set to run until March 2024, with applications being considered on a regular basis; Stags can advise on your eligibility and local funding that is available.
Slurry Infrastructure Grant
The Slurry Infrastructure Grant is part of the Farming Transformation Fund (FTF), which provides grants towards large capital items to help businesses improve productivity, profitability, and environmental sustainability.
Set to be launched this autumn, the Slurry Infrastructure Grant will provide funding for a new store or to increase the capacity of an existing compliant store to provide six months on-farm storage. It is expected that the grant will be based on 50% of DEFRA’s standard project costs. There will be two stages to the application process, with an initial expression of interest online. The RPA will then prioritise projects which will have the biggest environmental impact and invite them to proceed with part 2. There are expected to be further rounds of funding if you are not successful in the first year. Further details are expected to be announced soon; to be in the best position to proceed with an application it is advisable to start planning your storage capacity needs, thinking about what sort of store you might build, choosing where on the farm to put your store and checking if you need to apply for planning permission.
Farming Equipment and Technology Fund (FETF)
If you received a grant funding agreement in round one of the Farming Equipment and Technology Fund, you must submit your claim for payment by midnight on 31st October 2022. Round two is expected to open from autumn 2022 onwards, but no announcements have been made as yet.
The FETF supports the purchase of equipment and technology from an approved list to improve productivity in the agricultural, horticultural and forestry sectors. The list of items for round two is set to be reviewed; in round one there were over 120 items to apply for, including mobile cattle handling systems, cameras for monitoring livestock, dribble bars and robotic slurry pushers.
The RPA pay a standard cost per item no matter how much it costs the individual to purchase, with a minimum grant of £2,000 and maximum of £25,000. The scheme is competitive with a fixed application window, following which applications are prioritised and offers made. Once a grant offer has been received you can proceed with purchasing your items and can then claim the grant funding. Grant funded items should be maintained for five years from purchase. We will share further details of round two once it has been announced.
Rural England Prosperity Fund
Announced on the 3rd September, the Rural England Prosperity Fund will provide up to £110 million of funding to rural communities across England to boost productivity and create rural job opportunities from April 2023 to March 2025.
Examples of suitable projects include converting farm buildings to other business uses, investing in visitor accommodation and capital grants to restore heritage assets. Funds must be spent on lasting assets such as buildings and equipment for business or community purposes.
Secretary of State for Levelling Up, Greg Clark MP, said:
“This major investment in rural businesses will help us boost the countryside economy and close the rural productivity gap. It’s our mission to spread opportunity across the whole of the UK and this funding will help us do just that.”
The grant will be delivered by eligible local authorities, giving them a chance to deliver the grant in line with local priorities, with a focus on the needs of their communities. Local authorities are currently being invited to apply to DEFRA with further information on how they will deliver their allocation.
With over £6 million allocated to the authorities across Devon, £5.5 million to Cornwall and Isles of Scilly and £4 million to Somerset, businesses in the rural communities of the South West have a good opportunity to access these funds. More details are expected in Spring 2023.
With new grant opportunities being announced all the time, do contact your local Stags Professional Services team to discuss your ideas and applying for suitable grant funding.
South Somerset & East Devon Guy Wilson or Hannah Lukins 01823 653424
West Devon and Cornwall Sally Blowey 01822 619815
