A step-by-step guide to grant funding

What is the Rural Development Programme (RDPE)?

The RDPE is a £3.9 billion funding programme, running from 2007 to 2013, which replaced the England Rural Development Programme, which closed in 2006.

Approximately £3.3bn of this funding will support agri-environment and land management schemes such as Entry and Higher Level Schemes, while the remaining £600 million will be pumped into the agricultural, horticultural and forestry sectors to help them to become more competitive and sustainable in order to drive the rural economy forward.

What are the new grants seeking to achieve?

The new programme has four key areas of activity (known as axes):

• Axis 1 - Improving the competitiveness of the farming and forestry sectors

• Axis 2 - Enhancing the environment and the countryside

• Axis 3 - Improving quality of life and diversification of the rural economy

• Axis 4 - Leader/community-based rural development

Across the country, axes 1, 3 and 4 have a budget of approximately £600m from 2008 to 2013, which will then be sub-divided between the eight Regional Development Agencies (RDAs).

Who is administering the new grant programme?

The English RDAs are responsible for axes 1 and 3 funding budgets, and each RDA has its own regional strategy on how the funding will be targeted and spent. The RDAs will manage the larger, regional projects, while Leader groups will fund and facilitate small local projects.

A major difference from the previous funding programme is the importance of Leader funding, which is being managed by Local Action Groups (LAGs) across the country. Approximately one-third of each region’s budget will be spent through the Leader approach, which involves businesses and rural communities in specified rural areas working together to address local issues. It is vitally important for farmers and growers who intend to apply for funding to be involved with Leader, because we anticipate that it could be the only source of grant support for some farm diversification projects.

How much grant will be available?

Grant rates will range from 30 per cent to 50 per cent for commercial projects under axes 1 and 3, and up to 70 per cent for training. The same grant rates will apply in Leader areas. Leader-supported projects will tend to be small to medium size, whereas the RDAs will directly support the larger/collaborative projects with more than £500,000 total project cost.

The grant rates are as follows:

• Added-value projects involving processing, storage or packing of produce - grant support of 20 per cent to 40 per cent of project costs

• Diversification projects (farm retail) - grant support to 50 per cent

• Rural tourism projects - grant support to 50 per cent

• Irrigation reservoirs and water management projects - grant support to 40 per cent

• Environmental projects covering renewable energy, biofuels, wind, wood fuel and anaerobic digestion - grant support 40 per cent to 50 per cent

• Training - grant support to 70 per cent

What cost is eligible for funding?

The RDAs will fund the capital costs of buildings, equipment and feasibility studies of successful projects. For the majority of growers we believe the main opportunities will derive from funding for irrigation reservoirs, new packing/processing equipment and staff training, as with the previous programme.

How will applications be assessed?

Applications and business plans will be appraised by RDA staff against set assessment criteria for each funding measure, prior to a grant being awarded.

Applications should be submitted to meet Regional Appraisal Panel (RAP) deadlines and this will vary depending on the RDA. For example, the South East of England Development Agency (SEEDA) is operating bi-monthly panels, while other regions operate quarterly or monthly panel processes.

Applicants must be clear of the timescales from the very start, so that they can ensure they are able to meet submission deadlines and that they are able to work within the set timescales.

If an applicant is deemed to have started work on a project prior to receiving an offer letter, the potential grant award will be revoked, on the basis that the applicant has demonstrated that they are able to proceed with the project without grant. RDPE grants will not be made retrospectively.

It is important to note that where planning permission is required for a potential development, the planning permission must be submitted with the application. If the planning permission documents are not submitted, the project will not be assessed by the RDA.

A project can typically take four to six months from the conception meeting to receiving an offer letter.

It is important to note that the process will be competitive and there will be a strong preference for supporting activities that can demonstrate a good level of environmental, economic and social sustainability. This will include:

• Building designs and construction that focus on environmental sustainability and go beyond the basic statutory requirements

• Energy, water and waste management

• Reduction of food miles and packaging waste

• Security of an existing business

• Employment creation and improvements in working conditions

• Creating opportunities in disadvantaged areas

• Promoting diversity in all areas of recruitment, employment, training and promotion.

What can you do now to get started on a grant application?

A number of RDAs are accepting expressions of interest (EOI) from potential applicants to ensure they have projects in the pipeline. An EOI allows applicants to submit a summary of their project in order to check its eligibility and how it would potentially score under the new schemes. This will give applicants a chance to refine their projects prior to the submission of a full application, once the RDA invites them to do so.

Some RDAs do not request an EOI; however, applicants will need to check the process with their RDA or advisor.

What are the keys to success?

• Projects that can demonstrate benefits to the rural economy through economic growth and the creation and security of rural employment.

• Projects that can demonstrate collaboration among producers or within the supply chain.

• Projects that can demonstrate environmental benefits through the use of new sustainable technology, reduction of food miles, or the installation of new energy, water and waste management systems.

• Projects that can demonstrate a clear market need for their product or service.

• Projects that can demonstrate that, without grant support, the project would not proceed or would have to be substantially scaled back.

• Projects that have a well-researched business and marketing plan.

What funding is available in Scotland?

The Scottish Rural Development Programme (SRDP) has £1.6bn for socio-economic measures to invest in rural Scotland. Some £835m of this will be made available for new development. The Rural Development Contracts that are available through SRDP will support capital projects and management payments, including;

• Improving efficiency and productivity of agricultural businesses

• Creation and expansion of micro-enterprises and wider diversification

• On- and off-farm processing facilities

• Slurry/waste storage

• Creation and management of environmental plans in conservation areas

• Creation and management of forestry plantations

• Organic conversion and maintenance payments

What funding is available in Wales?

The Rural Development Programme for Wales has a budget of £795m. This is supported by a fully funded business support, training and project facilitation service from the Farming Connect Advisory Service. Wales has a Processing and Marketing Grant Scheme to fund projects that add value and improve supply chain competitiveness and a Supply Chain Efficiency Scheme and Quality Food Scheme. Farm diversification, tourism and rural community-based projects will also be supported through the RDP for Wales.

What success has Robin Turney Ltd achieved to date?

Robin Turney Ltd has achieved national success for clients under the RDPE to date and is proud of the company’s 100 per cent success rate.

Our grants team has developed an excellent understanding of what the RDAs are looking for in every region and we will be submitting projects across England in 2009 for a range of projects, including fruit and vegetable packhouses, irrigation reservoirs, centralised fruit storage and for an anaerobic digestion plant. We would encourage growers and processors considering investment in 2009 and beyond to investigate opportunities for funding under the RDPE.

ROBIN TURNEY LTD CLIENT CASE STUDY: LIDSEY FARM, LIDSEY, WEST SUSSEX

INVESTMENT: 10 million gallon irrigation reservoir and distribution main

RDA: South East of England Development Agency

GRANT RATE: 40 per cent

AIM OF PROJECT: To invest in a secure water source for the farm in order to collaborate with local salad growers to produce crops and generate rental income for the business.

KEY OUTPUTS:

• Jobs secured on farm

• Jobs created on farm and with local collaborating growers

• Additional area of land irrigated

• Additional income to local growers

Robert Emmins of Lidsey Farms said: “We were originally surprised by the amount of information and detail Robin Turney required for the reservoir application; however, as time went on, we realised how important it was to provide as much detail as possible to avoid queries and delays to the application process at a later date.

“We would not have attempted writing the application ourselves and we recommend using an experienced consultant that understands the RDA process and knows what they are looking for.

“We needed planning permission and our abstraction licence in place prior to submitting the grant application.

“We had to invest in a full environmental appraisal and water flow survey in order to obtain the abstraction licence, which was costly and time-consuming. We also needed to demonstrate best practice in our irrigation methods to obtain the grant, and a condition of our grant is to undertake a water audit in 2009.

“I think collaboration with local growers through letting irrigated land and land swaps helped us obtain funding.”

ROBIN TURNEY LTD CLIENT CASE STUDY: G&B ROBERTSON, THE BREACH FARM, CRANBROOK, KENT

INVESTMENT: Apple and pear packhouse, intake and top-fruit grader, packing lanes and state-of-the-art poly-bagging equipment

RDA: South East of England Development Agency

GRANT RATE: 40 per cent

AIM OF PROJECT: To increase the capacity of the existing top-fruit packhouse at Breach Farm, to meet the increasing demand for grading, packing and poly-bagging services from our growers in Kent. The businesses needed to increase the grading and packing capacity of the packhouse from 20,000 bins to 30,000 bins by 2009-10. This represents a 50 per cent increase in grading and packing capacity within 12 months to meet the needs of its growers and their supermarket customers.

KEY OUTPUTS:

• Jobs secured on farm and in the packhouse

• Jobs created in the packhouse

• Additional bins processed for local growers

• Adding value to locally grown top fruit

• Increased returns to growers

Managing partner Gilbert Robertson said: “We were required to find three quotes for each item of expenditure, which was not easy as much of the equipment is bespoke to our current packing operation.

“It was important to demonstrate a clear need for the project, which we achieved by inviting growers for whom we pack and our customers to write letters of support.

“I believe that creating and securing jobs in the locality was crucial to the project’s success. We do our very best to employ local people and some of our staff have been with us now for more than 20 years.

“Adding value to growers’ produce through investment in the very latest grading, packing and poly-bagging technology was of fundamental importance to the project. We wanted to service the grading and packing needs of our grower base and meet the packaging demands of the supermarkets.

“We split the investment and grant claims into two phases, spanning two years. This will help to manage cash flow, and allows us to install the equipment when we want, to avoid downtime.

“The entire application process took about four months from our initial meeting with Robin to the arrival of the offer letter from SEEDA, which worked well for us.”

ROBIN TURNEY LTD CLIENT CASE STUDY: R. FOUNTAIN & SONS, BOSTON, LINCOLNSHIRE

INVESTMENT: Rainwater harvesting system, storage reservoir and irrigation gantry

RDA: East Midlands Development Agency

GRANT RATE: 40 per cent

AIM OF PROJECT: This sustainable water efficiency project is part of a larger investment that will provide a source of high-quality brassica plants to local growers, provide local employment opportunities and meet market demand for locally grown produce.

KEY OUTPUTS:

• Jobs secured at Silvermist Nursery

• Jobs created at Silvermist Nursery

• Volume of water harvested, stored, treated and recycled

• Additional volume of plants produced through glasshouse expansion

Nick Fountain of R Fountain & Sons said: “We needed to demonstrate that the project would provide a positive impact on water and energy usage across the site in order to create a more sustainable system.

“Demonstrating growth in the business and security and creation of employment at the nursery was also very important. Meeting a clear market demand from our customers for an increased volume of brassica plants and becoming more cost-effective for the benefit of our customers was also a crucial part of the business plan.

“Ultimately we had to demonstrate that this project would enable us to ensure we continued to be as environmentally and economically sustainable as possible, and that we remained one of the most competitive plant supply businesses in the sector.”