20Plan_15oct2007

ICEP Draft Rural Development Programme for England 2007 – 2013 Sub-regional Implementation Plans – Merseyside.

Introduction

In rural Merseyside, agriculture plays a vital role in the rural economy and is accountable for the management of over 24,000 hectares of land. There are 541 registered agricultural holdings within Merseyside (2004 census) with over 50% of these being less than 20 hectares. This is due to the historic nature of agricultural enterprises undertaken in Merseyside. The majority of agricultural land is used for crop production. The area contains a significant proportion of high quality agricultural land and as a result of this, the horticultural sector is also important in this area. The agricultural industry, although not a major employer, generates substantial additional employment both through ancillary businesses and indirectly through other sectors such as tourism.

Key holdings statistics for Merseyside

County Council Area (Ha) Number ofHoldings

Labour Numbers (FTEs)

Wirral 3819.5 132 268.01Sefton 3581.7 123 280.08Liverpool 337.8 11 86.95St Helens 5857.7 143 325.26Knowsley 8640.3 79 156.38Halton 2075.6 53 201.86

Source National Statistics, June agricultural survey Data (Repopulated) 2004

Merseyside districts within the 50 most deprived districts, for each of the district level summaries of the Indices of Multiple Deprivation 2004

District RankLiverpool 1Knowsley 3

Halton 21St Helens 36

Wirral 48

‘Some 40,000 people are employed in farming in the North West, and the industry contributes 0.8% of regional GDP. But this does not tell the whole story. These figures do not include other industries that are part of the food production chain, for example food suppliers and food processors. Furthermore they do not reflect the role of farming in creating and maintaining the landscape and environment that provides the base for so many other economic activities such as leisure and tourism. The 2001

1

Foot and Mouth Disease outbreak highlighted the important links that exist between agriculture and the wider rural community.’

Activities

The Proposed programme will be based on a “Can Do, Willing to Help” approach to assist and encourage the growth in Rural Business. The delivery model will be based around those issues identified during the public consultation process as being the “BIG SIX” that will act as a driver to help self empowerment by Rural Business.

1. Big Brand Development of a cooperative brand that will encapsulate fresh, beverages, preserve, processed and frozen food from the best of Merseyside’s producers. Aims to create a brand, develop processing and packaging facilities, develop distribution, create a back room network and be an effective player in supplying public procurement. This will not be an initiative to help or assist; it will be a farmer/producer controlled business that will be commercially driven.Beneficiaries – All growers, producers and processors will be able to contribute towards the project. The main cost will be based on the level of private match (membership); this will be phased over the programme.Axis 1 (24, 28, 29 & 35), Axis 3 (53)

2. Merseyside Equine Business Group The aim of this project will to encourage an accreditation system for facilities within Merseyside, a formal body to lobby for access routes and connectivity to existing leisure facilities, networking opportunities and access to funding for facility improvement. The project will work closely with the BHS (British Horse Society) and volunteers in developing their objectives.Beneficiaries – Equine industry in Merseyside and people who use the facilities for sport and recreation.Axis 1 (24, 28, & 35), Axis 3 (53, 54 & 55)

3. Energy Supply Formation of a supply company to address continuity and quality of renewable energy (bio mass) that can be grown and harvested. Linked to need and regional plan for developing renewable energy generation.Beneficiaries – Growers, processors, end users and the general population that will benefit from the reduced production of carbon dioxide and increase in green planting.Axis 1 (24, 28, 29 & 35), Axis 3 (53 & 54)

4. Recycling & Carbon Auditing Increasing capacity and ability to recycle trade waste in rural areas and the assessment and reduction of a businesses carbon foot-print, in the form of a green audit.Beneficiaries - Any business that wants to address its recycling/carbon balance in a rural location.Axis 1 (24, 28, 29 & 35)

2

5. Rural Retail Business improvement through a modular approach. Service, Marketing, Monitoring, Supply, Logistics, Merchandising, Networks and Modelling. It would be hoped to create strong linkage and generic outcomes from work with the Big Brand project.Beneficiaries – Any rural retail business that has a business need or a weakness they would like to improve on.The help pack that is split initially into seven units will have a set budget appropriate to the task.Axis 1 (24, 28, & 35), Axis 3 (53, 54 & 55)

6. Attractions and Tourism Development of service pack, better linkage to TMP and promotion of availability.Beneficiaries – All established or emerging attractions which hold people in the rural economy.Axis 1 (24, 29 & 35), Axis 3 (53, 54, & 55)

All Projects will be supported with the opportunity to access specialist support and advice when appropriate and to apply for small capital grands in order to improve business performance.

Aims of Programme Adding value Creating Employment Training and development of rural business Innovation and sustainability

3

Merseyside RDPE Draft Plan August 2007

Introduction European Agricultural Fund for Rural Development (EAFRD)In June 2005, the European Agricultural Fund for Rural Development (EAFRD) was approved to replace the European Agricultural Guidance and Guarantee Fund (EAGGF) as funds for rural development under the second pillar of the Common Agricultural Policy (CAP) for the period 2007 – 2013. The available measures for funding have been divided between three main headings (or axes). There will also be a fourth, cross cutting (or implementation) axis under which the LEADER approach to bottom up locally led projects will be used to implement measures of the other axes.Axis I Improving the competitiveness of the farming and forestry sectorsAxis II Improving the environment and countrysideAxis III Rural quality of life and diversification of the rural economyAxis IV The LEADER approachTo unlock this funding Defra are required to submit a Rural Development Programme for England (RDPE) to the European Commission for approval. The national programme will define the scope of this Regional Implementation Plan. The Rural Development Regulation and its Implementing Regulation will define permissible activity.The Government is committed to Environmental Stewardship. The consequence of this is that the socio economic funding is likely to be near the minimum spends allowed by the EU. Therefore, the Government has agreed the balance of EU funding across the entire programme in England is ten per cent for Axis I; eighty per cent for Axis II and ten per cent for Axis III. For planning purposes Defra has indicated that theNorth West can assume Axis I and III funding of approximately £72 million for the life of the Programme and an estimated £300 million for Axis II subject to final budget allocations from the European Union including voluntary modulation.The programme as a whole will be delivered on an integrated basis. However, the Northwest Regional Development Agency will be responsible for Axis I and III and IV. The Forestry Commission and Natural England are responsible for Axis II.This document - a Regional Implementation Plan (RIP) - is one of eight being prepared across England by a range of partners including the RDAs, Forestry Commission and Natural England. The process has been facilitated by each region's Government Office. The RIPs will be presented to Defra by December 2006 as contribution to the national programme. The national programme will be submitted to the EU.For England's Northwest, the Regional Development Agency has further devolved the preparation of sub-regional implementation plans to Cumbria, Lancashire, Merseyside, Greater Manchester and Cheshire.These plans are being prepared by the existing sub-regional partnerships that have previously taken a lead for economic development programmes.

4

The sub-regional plans will deliver Axis I, III & IV of the Regional Implementation Plan in the sub-regions .On the pages that follow, the details of activity for the region under the RDPE are set out and the proposed balance of funding for each theme is established. The activities outlined are guided first and foremost by the Regional Rural Delivery Framework (RRDF), but also by the delivery partners key documents;Regional Forestry Framework (RFF) entitled 'Agenda for Growth' the Regional Economic Strategy (RES) and Natural England’s Strategic Direction.Although the above outline of axes, plans, implementation schemes and priority areas at first glance may appear complex; for England's Northwest the reality is simple and engaging: over the next 6 years the region that has bounced back from past setbacks with such energy and dynamism, now has an opportunity to build on its strong partnerships and even stronger reputation for delivery.The partners intend that the RDPE will build a sustainable future for the rural areas of the Northwest Region.

Issues and OpportunitiesIn preparing this RIP an analysis was conducted of the region's strengths, weaknesses, opportunities and threats (SWOT) in line with guidance from Defra and the approach deployed across other English regions.Some of the significant issues arising from the SWOT that are relevant to this programme are explored in more detail below. 3.1 Key issue: Competitiveness and GrowthThe rural North West still faces significant long-term economic challenges and some fundamental problems that remain difficult to shift.There are a number of underperforming areas (per capita), a lack of enterprise diversity and a widespread recognition that there is limited available workspace of an appropriate nature for modern enterprise.Baseline data collected for the RRDF makes it clear that, although rural areas account for 40% of the region’s businesses and 25% of its workforce, its contribution to GVA is only around 23% of the regional total. This suggests an abundance of poorly performing enterprises in rural areas. This must be addressed if we are to create the conditions for sustainable growth.Outside of agriculture and forestry, economic activity and commerce type in rural areas is similar to the rest of the region. Rural areas do however, have a higher proportion of SMEs, tend to have more lower paid workers with a higher proportion of seasonal employment, and significantly more multiple employment.There is a need for on-going investment, increased innovation, growth of a higher level skills base and an enduring level of entrepreneurship. A key difference in the rural economy is that its business base appears more robust. Business start-up rates may be lower in rural areas but survival rates are higher.

5

Prosperity in rural areas is can appear ‘polarised’. Agriculture’s weak economic performance is in stark contrast to the growth in business services and the stabilising force of public sector employment which provides 20-25% of all jobs in rural areas. This also impacts at the level of individuals within rural communities where the relative prosperity of an area masks deprivation and counters the argument that all parts of a community automatically benefit from the success of investment elsewhere3.2 Key issue: Climate change and energyAll aspects of life; economic, social and environmental face a significant threat from climate 2080s, it is predicted that the average annual daily temperature could increase by up to 4 degrees centigrade and seasonal rainfall patterns will change. Winter precipitation could increase by up to 30 per cent and summer rainfall decrease by up to 60 per cent. Actions that strengthen the resilience of the rural environment in the face of impending climate change impacts should be encouraged and landscape scale adaptation strategies pursued.Rural economic activity should move towards making a significant contribution to achieving a low-carbon and well adapted region, as a business opportunity. Better land management, increased energy efficiency and new diversified enterprises focused around bio-fuels and bio-energy crops could contribute to reducing the region's carbon emissions.Clear priorities for action include using waste streams or by-products to generate energy, short rotation coppicing and utilising under-managed woodlands as a source of wood fuel to address the Forestry Commission’s national target of 1m tonnes of biomass from woodland management.However, rural communities in the Northwest, particularly those in off-gas areas, lack any capacity to realise locally focused biomass initiatives. Such initiatives would deliver on priority actions across all four RIP themes and all rural areas in the North West should address this need for capacity within rural communities.3.3 Key issue: Resource protectionThe region's natural environmental resources - its natural capital - has an estimated value to the Northwest's economy of around £2.5 billion, much of it through rural businesses that are directly reliant on the environment, such as fishing, forestry or outdoor pursuits. An estimated 48,000 tourism jobs alone are judged to be reliant on a high quality environment. Protecting our natural environmental resources is of primary importance in protecting environment-dependant jobs and is important to creating new business opportunities for the future.One resource that comes under consistent pressure in rural areas is the region's network of waters and waterways. The majority of water pollution incidents are not from heavy industry but from agriculture. The contribution of diffuse pollution – run-off - to a reduced water quality across the region is of particular concern. The run-off is often made-up of nutrient rich soils that are drawn from arable and rough grazing areas that are at an increasing risk of soil erosion. This erosion of soil can damage waterways and water resources such as Cumbria's lakes, but it also leads to a release of carbon

6

locked in the soil and a drop in biodiversity. A key challenge for rural areas is a true adoption of sustainable farming and land use that reduces water pollution, increases efficiency in water use, combats soil erosion and protects the region's locked up carbon 'sinks'.3.4 Key issue: Sustainable agricultureThe Northwest's agricultural sector is used to adapting and changing to shifting circumstances, from BSE and Foot and Mouth Disease to an increasingly globalised and cost-cutting market for agricultural products.In the coming years, circumstances will continue to shift. Most pivotally through the change in focus under the Common Agricultural Policy (CAP) from supporting agricultural output to supporting sustainable land management, environmental stewardship and the development of farm businesses focus on their customers. A sustainable and prosperous farming sector will be in a better position to deliver many of the desired environmental and animal health and welfare outcomes than one which is struggling to survive.To deliver this, farmers’ will need to adopt a new culture of cooperation and collaboration that will be capable of delivering economies of scale. The challenge for the region, particularly in upland areas, is to maintain an economically viable farming and food sector which is focused on its markets and seeks to maximise the environmental gain from this shift. At the same time it is important to recognise the role of the agricultural community in safeguarding the region’s upland heritage where diversity and options for change are limited. Opportunities also exist to develop locality food brands, offering farmers the chance to add value to commodity production. Potential may also exist to link economic and environmental assets through food branding, especially in areas of high landscape character.Organic farming within the region is recognised as having an important role in delivering a Sustainable Farming and Food sector. The region has responded to the challenges facing the organic sector and has established the North West Organics Centre to reverse the reduction in land managed organically and bring the region more in line with national trends and market opportunities. Pressing issues such as declining returns to producers, a lack of producer co-operation, a lack of processing facilities and problems over quality and continuity of supply remain important for the region to address.3.5 Key issue: Forestry and woodlandsWoodland and forestry in Northwest England face several challenges. Although we have 700 square miles of Community Forest, we have relatively low woodland cover at 6.8% of land cover (96,171 hectares).Nearly half of the resource is under-managed. The Regional Forestry Framework (2005) identifies the priorities for this cross cutting sector and the issues this programme can address are summarised below.Only 61% of woodland Sites of Special Scientific Interest (SSSI’s) are in favourable/recovering condition and our valuable Ancient Woodlands, which cover 1% of land, are in need of protection and active management to

7

restore and conserve their biodiversity value. In helping to meet Regional and National BAP targets we need to focus on key woodland habitat types and species.Although an intrinsic part of the regional landscape, many woodland habitats are seriously fragmented and in need of restoration and reconnection. The North West has 7 million people and some of the poorest health records in England. This gives rise to opportunities for increased access to and community engagement in woodlands. Woodlands have a key role in economic, social and environmental regeneration. For example, in the restoration of derelict, underused and neglected land (DUNL) and over a third of the 26,385 hectares are in rural areas.The forestry and woodland industry sector underpins the sustainable management of our woodland. It has significant skill, capacity, leadership and networking challenges and there is a need to build on and improve its environmental and sustainability credentials to ensure they can deliver the required benefits.We need to foster growth in the sector through innovation, the development of new markets, eg woodfuel biomass and process improvement. There is a particular opportunity to add value to current forestry or farming operations through diversification, particularly for micro-businesses.3.6 Key issue: Biodiversity, Landscape and HeritageThe landscape of the NW region includes densely-populated cities and extensive urban fringe areas though 80% is farmland including large expanses of sparsely-populated upland areas and scenic countryside. The region has a remarkable range of habitats – from major estuaries such as Morecambe Bay, to the lakes and uplands of the Lake District and North Pennines. Approximately 29% of the region is subject to statutory landscape designation, comprising the Lake District, Yorkshire Dales and Peak District National Parks and Arnside Silverdale, Forest of Bowland, Solway and North Pennines Areas of Outstanding Natural Beauty. In addition, the UK Government is a co-signatory of the European Landscape Convention which gives specific duties towards the conservation and enhancement of all landscapes. The region also has responsibilities resulting from a wealth of European and international ecological designations.These rich landscape and biodiversity assets provide an essential resource for public enjoyment and recreation, and underpin much of the tourism activity in the region. Of major significance are the region’s upland areas, much being subject to statutory landscape and ecological designation. Ensuring continued support for these public goods in light of the impact of further CAP reform constitutes a major challenge for the region. 30% of England’s common land is in the NW, many being large upland sites with high ecological status. The challenge is achieving coherent management of this asset through intervention, capable of addressing the inherent complexity of land management interests.

8

2070 km2 of the region is designated as Sites of Special Scientific Interest. The challenge is to improve the sustainable management of this rich resource. Currently 18% is in poor condition due to unsustainable management – particularly upland, river, lake, limestone pavement/grassland and woodland habitats.The North West’s contribution to the England Biodiversity Strategy, through 5 Local Biodiversity Action Plans, will improve the quality and extent of many important habitats. Fragmentation and isolation of existing habitats which reduces habitat robustness, connectivity and expansion potential is also a significant issue, particularly in more developed and populated lowland areas and for large-scale upland habitats, including upland woodland/scrub.In the North West there is a significant historic/archaeological asset base and designated historic environment assets. In addition there are many thousands of buildings, sites and features within a historic landscape context which are not legally protected but which provide a sense of place for the people who live in and visit the countryside and make the landscape of the North West so varied and attractive and which attract thousands of visitors every year.Changes to the NW region’s traditional rural landscapes are happening fast, through urban pressures, the partly unpredictable effects of climate change, the need for renewable energy production, and through economic changes affecting agriculture, not least the changes to agricultural support payments. This change offers challenges but also opportunities for increased environmentally focused management.3.7 Key issue: Skills, knowledge transfer and capacity buildingOne reason why skills, knowledge transfer and capacity building is presented as a cross-cutting theme in this RIP is due to the broad and extensive range of challenges and opportunities the issue presents for rural areas, not least because so many areas have relatively high levels of low productivity or low pay.For the agricultural and forestry community, there is a need for farmers and land managers to broaden their skills base to include: sustainable approaches to land management to ensure that they gain maximum direct (economic) benefit from the changing focus in the CAP; a greater level of understanding of information and communication technologies (ICT); and a wider and more up-to-date set of techniques around business management and marketing.There is a more general need to build and develop Leadership within the rural communities, to increase levels of vocational training and deliver an increase in levels of knowledge transfer or research, from core areas such as animal welfare, renewable energy, resource efficiency and better business practice.

9

10

Table 111Notional Levels of Funding for North West 2007-2013Axis European

FundingNational Funding

Voluntary Modulated Monies

Required private match to access modulated monies

Axis 1 £9.9M £9.9M £16.74M £16.74 MAxis 2 £150M £150MAxis 3 £8.9M £8.9M £17.8M £17.8M

Aims of Merseyside Project Adding value Creating Employment Development of rural business Innovation and sustainability

The present project has been successful in working closely with beneficiaries and funders to minimise administrative burden and maximise programme outputs. Our aim has always been to remove unnecessary barriers and expense out of the supply chain and to aid benefits to as many businesses as possible.

History with Delivery PartnersICEP has worked with a number of delivery partners and has used this partnership approach to beneficiaries’ advantage.

Business Link – The creation of the Rural Business Advisor for Merseyside has increased the capacity and advice that can be delivered. It is hoped that the role and partnership will remain though the 2007-2013 ERDP allowing maximum benefit to as many businesses as possible.

Local Food First Merseyside - Has been successful in supporting micro and niche food businesses. Working with LFFM has enabled specialist advice and expertise to dove tailed into supported projects and producers.

The Mersey Forest - Has supported and assisted ICEP and rural economic development on Merseyside from the infancy of European support. TMF are a key delivery partner and their expertise and assistance is regularly called upon to support beneficiaries.

English Food and Farming Partnership - Have assisted and helped in the development of future collaborative proposals and are a knowledge base for all cooperative approach methods.

11

BTCV - Has worked closely with ICEP to develop the MEET programme to assist in the up-skilling and specialist training to improve the skills gap in environmental training.

Sefton Cost Landscape Partnership, Merseyside Biodiversity Action Plan, Farming and Wildlife Advisory Group and Natural England, these are a few of the environment and habitat organisations that we have worked with over the years.

Information Base and ConsultationThe initial consultation event was held on 22nd June 2006. A wide mix of private and public organisations were invited to the event with the following attending:

12

Present: -

Carl Smethurst- The Mersey Forest (Chair)

Paula Malley- ICEP

Jonathan Jackson- ICEP

Philip Ambler- Business Link GME

Karen Lamb- Local Food First

Alistair Coney- BTCV

Vernon Clarke- GONW

Lindsey Martin- EAGGF Secretariat

William Heyes- James Heyes & Sons

Paul Roots- Environment Agency

Dave McAleavy- Sefton Council

Mark Tripney- Nuffield Scholarship

Rick Rogers- St Helens Borough Council

Nicola Ball- Clean Merseyside Centre

Stephen Cook- E Cook and Sons

Donald Tyson- Beef Semen on Line

Jeanette Matthews-Griffiths

- Wadacre Farm Day Nursery

Thomas Heywood- Wadacre Farm Day Nursery

Chris Leggett- Church Society

Faith Crompton- Sefton Borough Council

13

Nigel Blandford- Red Rose Forest

Apologies: -

Alice Bradley- Farmline

David Shaw- Liverpool University

Howard Patterson- KMBC

Kevin Griffin- Green Apprentices

Tracy Gordon- Objective One – GONW

Helen Sweeney- GONW

Mark Joslyn - NWDA

Sam Alston- Rural Development Service

Fiona Smith- Acorn Venture Farm

Stephen Bates- Bates Farm & Diary Ltd

Graham Critchley- DEFRA

Lorna Tyson- Mysercough

Gordon Dacre- Liverpool City Council

Martin Harker- Stanley Estate & Stud Co

Bob Massingham - St Helens Metropolitan Borough

Council

Colin Barry- Rice Lane City Farm

Further opportunities were communicated to comment and feed into a proposal for Merseyside highlighted in the Summer 2007 ICEP newsletter, ICEP forum web site and at the Merseyside Rural Business Conference 2nd March 2007, at which more details of possible funding were discussed and senior members of NWDA and GONW were available for informal

14

discussion. Further one to one meetings have been held with key individuals to discuss issues and potential development ideas.Including:Local Bank ManagersKnowsley EstatesLeverhulme EstatesNFUBTCVMerseyside Biodiversity groupNorth West NFU cereal group membersEFFPNational Federation of Young Farmers

The action points from the initial meeting that have been developed are: Small verses large capital grants It was felt that more successful outcomes would be gained from

many small interventions (risk management) Improvement and standardisation of equine businesses Promotion of existing business Links to procurement contracts Supply of local produce to local people Distribution links Local branding and local buyer mark

Big Six Themed Priority

The Proposed programme will be based on a “Can Do, Willing to Help” approach to assist and encourage the growth in Rural Business. The delivery model will be based around those issues identified during the public consultation process as being the “BIG SIX” that will act as a driver to help self empowerment by Rural Business.Support Merseyside

Development of a cooperative approach that will encapsulate fresh, beverages, preserve, processed and frozen food from the best of Merseyside’s producers. Aims to add value, develop processing and packaging facilities, develop distribution, create a back room network, develop and access new markets and be an effective player in supplying public procurement. This will not be an initiative to help or assist; it will be farmer/producer controlled businesses that will be commercially driven.Beneficiaries – All growers, producers and processors will be able to contribute towards the project. Development Opportunities – Grain storage, agronomy development group, distribution hub, brewing and beverage centre, retail outlets, food service range, computer controlled vegetable sort/packer.

Merseyside Equine Business Group

15

The aim of this project will be to encourage an accreditation system for facilities within Merseyside, a formal body to lobby for access routes and connectivity to existing leisure facilities, networking opportunities and access to funding for facility improvement. The project will work closely with the BHS (British Horse Society) and volunteers in developing their objectives.Beneficiaries – Equine industry in Merseyside and people who use the facilities for sport and recreation.Development Opportunities- Quality Standard, standardisation on business rates and VAT, Facility improvement, promotion, bridleways, off road riding.

Sustainable BiomassFormation of a supply company to address continuity and quality of renewable energy (bio mass) that can be grown and harvested. Linked to need and regional plan for developing renewable energy generation.The development of a forest management plan by the majority of woodland owners. To maximise returns and optimise the potential for woodland plantings.Environmental improvement and habitat management to aid bio diversity and increase species numbers and diversity.Beneficiaries – Growers, processors, end users and the general population that will benefit from the reduced production of carbon dioxide and increase in green planting.Development Opportunities – Advise on woodland management, crop development, processing, product development, sales and marketing.

Recycling & Carbon Auditing Increasing capacity and ability to recycle trade waste in rural areas and the assessment and reduction of a businesses carbon foot-print, in the form of a green audit.Beneficiaries - Any business that wants to address its recycling/carbon balance in a rural location.Development Opportunities – Recycling of waste, adding value to waste, carbon audit, energy and water use.

Rural Retail, Business ImprovementBusiness improvement through a modular approach. Service, Marketing, Monitoring, Supply, Logistics, Merchandising, Networks and Modelling. It would be hoped to create strong linkage and generic outcomes from work with Support Merseyside.Beneficiaries – Any rural retail business that has a business need or a weakness they would like to improve on.The help pack that is split initially into seven units will have a set budget appropriate to the task.Development Opportunities – Support packs, specialist advice on problem areas, promotion and marketing

Attractions and Tourism

16

Development of service pack, better linkage to TMP and promotion of availability.Beneficiaries – All established or emerging rural attractions which hold people in the rural economy.Development Opportunities – Promotion, Marketing, skill development, Facility improvement

Axis 1 & 3

Axis 1Measure 114 115 123 124Title

Use of advisory services

Setting up of

management, relief

and advisory services

Adding value to

agricultural and forestry

products

Cooperation for

development of new products, processes

and technologie

s% Allocation of axis 20% 20% 40% 20%Themed PrioritySupport Merseyside

30% 100% 40%

Sustainable Biomass

70% 30% 20%

Equine Business

30% 10%

Carbon Footprint

10% 10% 20%

Rural Retail, Deevelopment

10% 5%

Tourism and Atraction

10% 5%

17

Axis 3Measure 311 312 313Title Diversificati

on into non-agricultural activities

Business creation

and developme

nt

Encouragement of tourism

activities

% Allocation of axis 40% 40% 20%Themed PrioritySupport Merseyside

60% 20%

Sustainable Biomass

10% 20%

Equine Business

20% 20%

Carbon Footprint

20%

Rural Retail, Development

10% 20%

Tourism and Attraction

100%

Complementary Activity

The current ICEP project works closely with organisations and individuals that bring benefits to Rural Merseyside. This approach not only brings complementarity but also reduces costs avoids duplication and highlights best practice. FWAG, EBLEX, HGCA, NFU, BTCV, Business Link and Natural England events have all been accessed in the past by rural business to further current project objectives. It would be the aim of future delivery to optimise all opportunities for joint activity and “piggy backing” to further aid project objectives.

Delivery Strategy

ICEP is a partnership initiative to support the rural regeneration of Merseyside, working with national, regional and local agencies. Funding for

18

innovative and sustainable projects is a key driver in the long term future of rural areas.

Aims and Objectives

The ICEP aim is to provide an umbrella project encompassing improvements to rural businesses and the environment in Merseyside. Given the unique nature of Merseyside and its diverse character, the use of an integrated scheme is considered essential to produce maximum benefit for the beneficiaries. These aims will be achieved through projects contributing to the following key actions:

1. Assist in the restructuring of rural and land management enterprises to help them adjust to the pressures facing the industry and to increase their competitiveness.

2. Develop the marketing and processing of Merseyside’s agricultural, horticultural and other land management produce and products.

3. Develop opportunities for farm and land management business diversification on Merseyside including new crops and non farming activities, including forestry.

4. Promote improved integration between the urban and rural communities through a positive programme of community development, countryside management and environmental enhancement activity linked to the Mersey Forest and other key environmental designations and habitats.

5. To improve the environment and the quality of life for the people of Merseyside

6. Provide opportunities for all members of society to enjoy the benefits of the Integrated Countryside and Environment Plan.

ICEP has proven its ability in deliver the support and advice that rural businesses require to maximise the benefits from funding initiatives. The project would be delivered by the existing experienced team that has gained trust and respect from the rural business community of Merseyside.

Key Delivery Strengths Experienced team Proven delivery ability Operational without set-up costs or time lag Proven communication channels to rural business Supported by local governance

The delivery approach will follow the current model using the partnerships that have been developed to maximise outcomes and optimise delivery.

19

The project team has work hard over the past six years in developing a support and advice package that has brought true benefit to rural business.

20

21

COMMON MEASURE TEMPLATE FOR LEADER AND NON-LEADER APPROACHES

RDPE Measure Code 114 – Use of advisory services

Rationale for Intervention

698. Article 24 of the Regulation allows for support to be granted in order to helpfarmers and forest holders to meet costs arising from the use of advisory services forthe improvement of the overall performance of their holding. However, in the case offarmers, it goes on to constrain the conditions under which the support is available: “Asa minimum the advisory service to farmers shall cover:· the statutory management requirements and the good agricultural andenvironmental conditions provided for in Articles 4 and 5 of and in Annexes III and IVto Regulation (EC) No 1782/2003;· occupational safety standards based on Community legislation”.699. In England, the requirements of Articles 4 and 5 of Annexes III and IV ofRegulation (EC) No 1782/2003 are being funded separately, and not under the RuralDevelopment Programme. Advisory services for farmers will not therefore be supportedunder this measure, though as noted above, the vocational training and informationservices measure will be used extensively. The measure will however be used forproviding advisory services to woodland owners.700. A comprehensive assessment of the needs of woodland owners, and the widersector carried out in 2003 308 showed that one of the most needed Governmentinterventions was advice on management and for increased emphasis on advice,extension and training.

Objectives of the Intervention 701. The objective of the measure is to improve the sustainable management of

neglected woodlands.

Allocation (%) Initially 20% of axis one budget.Rate of support 50 80% of the costs of the advice, depending on local need and demand, up to a maximum of 1500 Euro per holding.

22

Equal Opportunities All businesses and individuals will be assessed, assisted or signposted equally based on need. Additional systems

will be put in place to eliminate any barrier that may hinder an individuals or companies ability to access the project.

Sustainable Development

Sustainable development is a cross-cutting theme of the programme. All interventions must take this into account, energy efficiency, removal of waste, resource use; local materials and health are just some of the factors the projects will consider. .

ACTIVITY ONEDescription of Proposed Activity

Merseyside Supply Network,

Type of Support

Beneficiaries

Total Cost

Intervention Rate (%)CoverageIndicators and Targets

.

23

Delivery Area MerseysideDemarcation

ACTIVITY TWODescription of Proposed Activity

Equine business group,

Type of Support

BeneficiariesTotal CostIntervention Rate (%)CoverageIndicators and Targets

Delivery Area MerseysideDemarcation .

ACTIVITY THREEDescription of Proposed Activity

Sustainable Biomass 702. Providing advice to forest holders and farmers whose holding includes woodlandon the sustainable management of their woodland.703. Advice would cover, as a minimum, compliance with legislation that is directlyrelevant to the woodland, including: Felling Licences, Environmental ImpactAssessment, SSSI legislation, Habitats Regulations and other species protectionlegislation. It must also cover appropriate advice on the public safety issues associatedwith trees and precautions to avoid accidents during management operations.704. The provision of advice may also be geographically targeted to those areas

24

deemed to be of greatest public interest. Examples of such geographic targeting mightinclude: woods near to centres of population, woods in designated landscapes (NationalParks and AONBs) and protected sites (SACs/SPAs/SSSIs).

Type of SupportAdvice and support on improvement of woodland management, sustainability and economic return of woodland.This would take the form of seminars, visits and one to one sessions.

Beneficiaries Support will be granted for the use of advisory services to farmers whose holdingincludes woodland and owners or occupiers of woodland or forest which meets thetargeting/prioritising criteria.

Total Cost 70% of measure allocation

Intervention Rate (%)

Rate of support 50 80% of the costs of the advice, depending on local need and demand, up to a maximum of 1500 Euro per holding.

Coverage MerseysideIndicators and Targets Direct support of 8 businesses

Delivery Area Merseyside Demarcation .

ACTIVITY FOURDescription of Proposed Activity

Rural Retail, Business improvement


25





Coverage Merseyside Indicators and Targets Support of 2 businesses


ACTIVITY FIVEDescription of Proposed Activity

Attraction and Tourism development

702. Providing advice to forest holders and farmers whose holding includes woodlandon the sustainable management of their woodland.703. Advice would cover, as a minimum, compliance with legislation that is directlyrelevant to the woodland, including: Felling Licences, Environmental ImpactAssessment, SSSI legislation, Habitats Regulations and other species protectionlegislation. It must also cover appropriate advice on the public safety issues associatedwith trees and precautions to avoid accidents during management operations.704. The provision of advice may also be geographically targeted to those areasdeemed to be of greatest public interest. Examples of such geographic targeting mightinclude: woods near to centres of population, woods in designated landscapes (NationalParks and AONBs) and protected sites (SACs/SPAs/SSSIs).

26



Total Cost 10% of measure allocationIntervention Rate (%)


Coverage MerseysideIndicators and Targets

Support of 2 businesses


ACTIVITY SIXDescription of Proposed Activity

Recycling And Carbon Audit, Addressing waste, energy and carbon foot print of rural business

702. Providing advice to forest holders and farmers whose holding includes woodlandon the sustainable management of their woodland.703. Advice would cover, as a minimum, compliance with legislation that is directlyrelevant to the woodland, including: Felling Licences, Environmental ImpactAssessment, SSSI legislation, Habitats Regulations and other species protectionlegislation. It must also cover appropriate advice on the public safety issues associatedwith trees and precautions to avoid accidents during management operations.

27

704. The provision of advice may also be geographically targeted to those areasdeemed to be of greatest public interest. Examples of such geographic targeting mightinclude: woods near to centres of population, woods in designated landscapes (NationalParks and AONBs) and protected sites (SACs/SPAs/SSSIs).

Type of Support Advice and support on improvement of woodland management, sustainability and economic return of woodland.This would take the form of seminars, visits and one to one sessions.


Total Cost 10% of measure allocationIntervention Rate (%)


Coverage MerseysideIndicators and Targets 2 businesses supported


RDPE Measure Code 115 – Setting up of management, relief and advisory services

Rationale for Intervention 713. Collaborative farm management ventures, such as buying groups and labour and machinery

rings, allow farm businesses to operate more efficiently through the sharing of labour and machinery, 28

and through purchasing inputs and raw materials more efficiently. Tailored farm advisory services that address gaps in existing advisory provisions can help with adaptation and improve overall farm performance.714. The existing provision of low cost but high quality forestry advice is not evenly distributed across the country. Projects such as Silvanus have demonstrated how advisory services can be established and become self sustaining in areas where it was recognised there was a shortfall in advisory provision. These have been done without serious adverse impact on existing advisers operating in the area. Forestry advisory services enable the development and marketing of forestry added value products, new products and new market development.

Objectives of the Intervention 715. The objective of this measure is to help farmers and forest holders to adapt to

changing circumstances (including market changes, environmental changes andregulatory changes), to improve and facilitate management, and to improve overallperformance by further enhancing human potential.

Allocation (%) 20% of Axis 1 budget





ACTIVITY ONEDescription of Proposed


717. Support for farm management and advisory services will be used to establish,29

Activity and where appropriate expand, joint management services (covering issues such asbusiness planning and joint venture operational planning) and advisory services (suchas machinery rings). A variety of actions will be used to achieve this, including (thoughnot restricted to) facilitation, group workshops, syndicate establishment and groupmentoring.718. For forestry, the aim will be to increase the number, range and quality of advisoryservices available at an affordable level to forest holders and remedy gaps in provisionof advisory services.5201719. Support for setting up new forestry advisory services will provide advice tofarmers who have woodland in their holdings and forest holders on sustainablemanagement of their forests. The advisory service to be provided must be carefullymatched to the needs of the forest holders and the nature of the woodland in the areacovered.720. Type of services to be covered:· statutory requirements;· advisory and management services active in the development and marketing ofvalueaddedproducts;· developing collaborative activity and new product and new market development;· growing, harvesting, processing and enduseof renewable energy crops.

Type of Support Costs associated with the establishment of the new advisory or management

service including: cooperation, legal fees, accountancy costs, office equipment,assessing existing service provision (i.e. supply), needs of owners (i.e. market),establishing and registering a new body, recruitment of staff, training of staff in their firstyear of employment, purchase of IT equipment and software, marketing and promotionof the service, and quality assurance/customer satisfaction. Capital items, includingvehicles and premises, are not eligible.

30

Beneficiaries Organisations, holdings or individuals setting up farm management, farm reliefand farm advisory services, as well as forestry advisory services. New services (whichmay include a new service to be delivered by an existing service provider), will only beeligible for support under this measure if there is a demonstrated deficit in the provisionof appropriate advice in that area. For forestry advisory services, this must be based onan assessment of the existing advisory services, and an evaluation of whether this ismatched to the nature of the woodland resource and the needs of the owners. Theimpact of a new service on the existing advisory services must be assessed and takeninto account when deciding on which new services are supported. Support for newservices will not be given in areas where they will undermine the viability of existingadvice providers who are providing a satisfactory service.



50% in the first year, 30% in the second year and 20% in the third year. Nosupport beyond that.


.Set up 1 venture



Equine business group,717. Support for farm management and advisory services will be used to establish,and where appropriate expand, joint management services (covering issues such asbusiness planning and joint venture operational planning) and advisory services (suchas machinery rings). A variety of actions will be used to achieve this, including (thoughnot restricted to) facilitation, group workshops, syndicate establishment and groupmentoring.

31

718. For forestry, the aim will be to increase the number, range and quality of advisoryservices available at an affordable level to forest holders and remedy gaps in provisionof advisory services.5201719. Support for setting up new forestry advisory services will provide advice tofarmers who have woodland in their holdings and forest holders on sustainablemanagement of their forests. The advisory service to be provided must be carefullymatched to the needs of the forest holders and the nature of the woodland in the areacovered.720. Type of services to be covered:· statutory requirements;· advisory and management services active in the development and marketing ofvalueaddedproducts;· developing collaborative activity and new product and new market development;· growing, harvesting, processing and enduseof renewable energy crops.



Beneficiaries Organisations, holdings or individuals setting up farm management, farm reliefand farm advisory services, as well as forestry advisory services. New services (whichmay include a new service to be delivered by an existing service provider), will only beeligible for support under this measure if there is a demonstrated deficit in the provisionof appropriate advice in that area. For forestry advisory services, this must be based onan assessment of the existing advisory services, and an evaluation of whether this is

32

matched to the nature of the woodland resource and the needs of the owners. Theimpact of a new service on the existing advisory services must be assessed and takeninto account when deciding on which new services are supported. Support for newservices will not be given in areas where they will undermine the viability of existingadvice providers who are providing a satisfactory service.

Total Cost 30% of measureIntervention Rate (%)


Coverage MerseysideIndicators and Targets Set up one venture



Sustainable Biomass717. Support for farm management and advisory services will be used to establish,and where appropriate expand, joint management services (covering issues such asbusiness planning and joint venture operational planning) and advisory services (suchas machinery rings). A variety of actions will be used to achieve this, including (thoughnot restricted to) facilitation, group workshops, syndicate establishment and groupmentoring.718. For forestry, the aim will be to increase the number, range and quality of advisoryservices available at an affordable level to forest holders and remedy gaps in provisionof advisory services.5201719. Support for setting up new forestry advisory services will provide advice tofarmers who have woodland in their holdings and forest holders on sustainablemanagement of their forests. The advisory service to be provided must be carefully

33

matched to the needs of the forest holders and the nature of the woodland in the areacovered.720. Type of services to be covered:· statutory requirements;· advisory and management services active in the development and marketing ofvalueaddedproducts;· developing collaborative activity and new product and new market development;· growing, harvesting, processing and enduseof renewable energy crops.




Total Cost30% of measure

34



Coverage MerseysideIndicators and Targets Set up one venture



Rural Retail, Business improvement 717. Support for farm management and advisory services will be used to establish,and where appropriate expand, joint management services (covering issues such asbusiness planning and joint venture operational planning) and advisory services (suchas machinery rings). A variety of actions will be used to achieve this, including (thoughnot restricted to) facilitation, group workshops, syndicate establishment and groupmentoring.718. For forestry, the aim will be to increase the number, range and quality of advisoryservices available at an affordable level to forest holders and remedy gaps in provisionof advisory services.5201719. Support for setting up new forestry advisory services will provide advice tofarmers who have woodland in their holdings and forest holders on sustainablemanagement of their forests. The advisory service to be provided must be carefullymatched to the needs of the forest holders and the nature of the woodland in the areacovered.720. Type of services to be covered:· statutory requirements;· advisory and management services active in the development and marketing ofvalueaddedproducts;

35

· developing collaborative activity and new product and new market development;· growing, harvesting, processing and enduseof renewable energy crops.



BeneficiariesTotal Cost



Coverage Merseyside Indicators and Targets


ACTIVITY FIVEDescription of Proposed


36

ActivityType of Support

Costs associated with the establishment of the new advisory or managementservice including: cooperation, legal fees, accountancy costs, office equipment,assessing existing service provision (i.e. supply), needs of owners (i.e. market),establishing and registering a new body, recruitment of staff, training of staff in their firstyear of employment, purchase of IT equipment and software, marketing and promotionof the service, and quality assurance/customer satisfaction. Capital items, includingvehicles and premises, are not eligible.


Total CostIntervention Rate (%)

50% in the first year, 30% in the second year and 20% in the third year. No support beyond that.



37


Recycling And Carbon Audit, Addressing waste, energy and carbon foot print of rural business717. Support for farm management and advisory services will be used to establish,and where appropriate expand, joint management services (covering issues such asbusiness planning and joint venture operational planning) and advisory services (suchas machinery rings). A variety of actions will be used to achieve this, including (thoughnot restricted to) facilitation, group workshops, syndicate establishment and groupmentoring.718. For forestry, the aim will be to increase the number, range and quality of advisoryservices available at an affordable level to forest holders and remedy gaps in provisionof advisory services.5201719. Support for setting up new forestry advisory services will provide advice tofarmers who have woodland in their holdings and forest holders on sustainablemanagement of their forests. The advisory service to be provided must be carefullymatched to the needs of the forest holders and the nature of the woodland in the areacovered.720. Type of services to be covered:· statutory requirements;· advisory and management services active in the development and marketing ofvalueaddedproducts;· developing collaborative activity and new product and new market development;· growing, harvesting, processing and enduseof renewable energy crops.

Type of Support

Costs associated with the establishment of the new advisory or managementservice including: cooperation, legal fees, accountancy costs, office equipment,assessing existing service provision (i.e. supply), needs of owners (i.e. market),establishing and registering a new body, recruitment of staff, training of staff in their firstyear of employment, purchase of IT equipment and software, marketing and promotionof the service, and quality assurance/customer satisfaction. Capital items, including

38

vehicles and premises, are not eligible.


Total Cost 10% of measure



Coverage MerseysideIndicators and Targets Work with 5 businesses


39

RDPE Measure Code 123 – Adding value to agricultural and forestry products


. 764. As one of the five drivers of productivity, innovation is considered crucial toeconomic growth and long term prosperity (DTI, 2006). However, the marketsometimes fails to provide the assets required for innovation due to issues of scale anduncertainty. Many agricultural firms may have problems innovating because of theirsize 316 . The agricultural and forestry sectors are largely populated by small firmsisolated from the services and information sources available to other sectors. Themarket is not large enough to encourage the development of new technologies orconsulting services to assist in improvements. Any existing consulting services areexpensive, particularly for the small firms that constitute the agricultural and forestrysectors, and as a result the sectors are unable, without intervention, to invest in theresearch necessary to achieve innovation. Similar market failures exist in the forestrysector, meaning that in the absence of support the sector is unable to take advantage ofthe opportunities that exist for substituting wood for less environmentally sustainableraw materials, particularly for energy production. Woodfuel represents a major newmarket opportunity, for low grade hard and softwood. But it requires innovation in termsof harvesting equipment and techniques, processing, marketing, supply chains, and enduser facilities.

Objectives of the Intervention

765. The objective of the measure is to improve the processing and marketing ofprimary agricultural and forestry products through investment in improved efficiency,renewable energy, new technologies and new market opportunities, and to improve theoverall performance of the enterprise.766. Improvements in the processing and marketing of primary agricultural andforestry products should be encouraged by means of support for:· investments aimed at improving efficiency in the processing and marketing sector;· promoting the processing and marketing of agricultural and forestry production forrenewable energy;· introducing new technologies and innovation;· opening new market opportunities for agricultural and forestry products, puttingemphasis on quality;· improving environmental protection, occupational safety, hygiene and animalwelfare, as appropriate.767. As a general rule the measure will be targeted on, micro, small and mediumsized

40

enterprises and other enterprises under a certain size, which are better placed toadd value to local products.768. The measure will also be used to promote the development of new markets forforestry products which will in turn support management of woodland which will protectthe public interest and enhance the public benefits it provides.







Merseyside Supply Network,769. Investments will be expected to lead to one or more of the followingimprovements to an enterprise:· develop new products and open up new markets, including local and/or nichemarkets;· introduce new technology or processes;· improve quality standards, occupational health and safety;· enhancing environmental performance and reducing waste.

41

Type of Support 776. Eligible costs will include:

· capital costs including new build and conversions, equipment and machinery andassociated infrastructure;· architects’, engineers’ and consultants’ fees;· feasibility studies;· product development, branding and design costs.777. Second hand equipment for large 317 companies will be ineligible.

Beneficiaries For agricultural products eligibility will be limited to micro, small and mediumsized enterprises (note state aid guidance). For forestry products eligibility will belimited to micro enterprises.


778. Investments in primary agricultural processing and marketing (Annex 1 in andAnnex 1 out) will be in accordance with the framework established in Article 4 ofCommission Regulation 1857/2006. Large companies will be subject to de minimissupport under Commission Regulation 1998/2006.779. For small and medium sized businesses, aid intensity for annex 1 in and Annex 1out will be at the following rates:· Up to 50% in Convergence objective areas;· Up to 40% in other areas.780. For intermediate enterprises above the SME threshold (with less than 750employees or with a turnover of less than €200 million), aid intensity rates will be asfollows for annex 1 in and annex 1 out:· Up to 25% in Convergence objective areas;· Up to 20% in other areas.781. Investments concerning primary agricultural processing and marketing where theend products are nonAnnex1 will be funded in accordance with the SME blockexemptions (Commission Regulation 70/2001: state aid to small and medium

42

enterprises).782. In all cases, large companies (in excess of 750 employees or with a turnover ofmore than €200 million) will be subject to de minimis support under CommissionRegulation 1998/2006.


.



Equine business group,769. Investments will be expected to lead to one or more of the followingimprovements to an enterprise:· develop new products and open up new markets, including local and/or nichemarkets;· introduce new technology or processes;· improve quality standards, occupational health and safety;· enhancing environmental performance and reducing waste.



43



778. Investments in primary agricultural processing and marketing (Annex 1 in andAnnex 1 out) will be in accordance with the framework established in Article 4 ofCommission Regulation 1857/2006. Large companies will be subject to de minimissupport under Commission Regulation 1998/2006.779. For small and medium sized businesses, aid intensity for annex 1 in and Annex 1out will be at the following rates:· Up to 50% in Convergence objective areas;· Up to 40% in other areas.780. For intermediate enterprises above the SME threshold (with less than 750employees or with a turnover of less than €200 million), aid intensity rates will be asfollows for annex 1 in and annex 1 out:· Up to 25% in Convergence objective areas;· Up to 20% in other areas.781. Investments concerning primary agricultural processing and marketing where theend products are nonAnnex1 will be funded in accordance with the SME blockexemptions (Commission Regulation 70/2001: state aid to small and mediumenterprises).782. In all cases, large companies (in excess of 750 employees or with a turnover ofmore than €200 million) will be subject to de minimis support under CommissionRegulation 1998/2006.



44


Sustainable Biomass769. Investments will be expected to lead to one or more of the followingimprovements to an enterprise:· develop new products and open up new markets, including local and/or nichemarkets;· introduce new technology or processes;· improve quality standards, occupational health and safety;· enhancing environmental performance and reducing waste.





778. Investments in primary agricultural processing and marketing (Annex 1 in andAnnex 1 out) will be in accordance with the framework established in Article 4 ofCommission Regulation 1857/2006. Large companies will be subject to de minimissupport under Commission Regulation 1998/2006.779. For small and medium sized businesses, aid intensity for annex 1 in and Annex 1out will be at the following rates:· Up to 50% in Convergence objective areas;

45

· Up to 40% in other areas.780. For intermediate enterprises above the SME threshold (with less than 750employees or with a turnover of less than €200 million), aid intensity rates will be asfollows for annex 1 in and annex 1 out:· Up to 25% in Convergence objective areas;· Up to 20% in other areas.781. Investments concerning primary agricultural processing and marketing where theend products are nonAnnex1 will be funded in accordance with the SME blockexemptions (Commission Regulation 70/2001: state aid to small and mediumenterprises).782. In all cases, large companies (in excess of 750 employees or with a turnover ofmore than €200 million) will be subject to de minimis support under CommissionRegulation 1998/2006.




Rural Retail, Business improvement 769. Investments will be expected to lead to one or more of the followingimprovements to an enterprise:· develop new products and open up new markets, including local and/or nichemarkets;· introduce new technology or processes;· improve quality standards, occupational health and safety;· enhancing environmental performance and reducing waste.

46





778. Investments in primary agricultural processing and marketing (Annex 1 in andAnnex 1 out) will be in accordance with the framework established in Article 4 ofCommission Regulation 1857/2006. Large companies will be subject to de minimissupport under Commission Regulation 1998/2006.779. For small and medium sized businesses, aid intensity for annex 1 in and Annex 1out will be at the following rates:· Up to 50% in Convergence objective areas;· Up to 40% in other areas.780. For intermediate enterprises above the SME threshold (with less than 750employees or with a turnover of less than €200 million), aid intensity rates will be asfollows for annex 1 in and annex 1 out:· Up to 25% in Convergence objective areas;· Up to 20% in other areas.781. Investments concerning primary agricultural processing and marketing where theend products are nonAnnex1 will be funded in accordance with the SME blockexemptions (Commission Regulation 70/2001: state aid to small and mediumenterprises).782. In all cases, large companies (in excess of 750 employees or with a turnover of

47

more than €200 million) will be subject to de minimis support under CommissionRegulation 1998/2006.




Attraction and Tourism development.769. Investments will be expected to lead to one or more of the followingimprovements to an enterprise:· develop new products and open up new markets, including local and/or nichemarkets;· introduce new technology or processes;· improve quality standards, occupational health and safety;· enhancing environmental performance and reducing waste.



Beneficiaries For agricultural products eligibility will be limited to micro, small and medium48

sized enterprises (note state aid guidance). For forestry products eligibility will belimited to micro enterprises.


778. Investments in primary agricultural processing and marketing (Annex 1 in andAnnex 1 out) will be in accordance with the framework established in Article 4 ofCommission Regulation 1857/2006. Large companies will be subject to de minimissupport under Commission Regulation 1998/2006.779. For small and medium sized businesses, aid intensity for annex 1 in and Annex 1out will be at the following rates:· Up to 50% in Convergence objective areas;· Up to 40% in other areas.780. For intermediate enterprises above the SME threshold (with less than 750employees or with a turnover of less than €200 million), aid intensity rates will be asfollows for annex 1 in and annex 1 out:· Up to 25% in Convergence objective areas;· Up to 20% in other areas.781. Investments concerning primary agricultural processing and marketing where theend products are nonAnnex1 will be funded in accordance with the SME blockexemptions (Commission Regulation 70/2001: state aid to small and mediumenterprises).782. In all cases, large companies (in excess of 750 employees or with a turnover ofmore than €200 million) will be subject to de minimis support under CommissionRegulation 1998/2006.



49


Recycling And Carbon Audit, Addressing waste, energy and carbon foot print of rural business769. Investments will be expected to lead to one or more of the followingimprovements to an enterprise:· develop new products and open up new markets, including local and/or nichemarkets;· introduce new technology or processes;· improve quality standards, occupational health and safety;· enhancing environmental performance and reducing waste.





778. Investments in primary agricultural processing and marketing (Annex 1 in andAnnex 1 out) will be in accordance with the framework established in Article 4 ofCommission Regulation 1857/2006. Large companies will be subject to de minimissupport under Commission Regulation 1998/2006.779. For small and medium sized businesses, aid intensity for annex 1 in and Annex 1out will be at the following rates:· Up to 50% in Convergence objective areas;· Up to 40% in other areas.

50

780. For intermediate enterprises above the SME threshold (with less than 750employees or with a turnover of less than €200 million), aid intensity rates will be asfollows for annex 1 in and annex 1 out:· Up to 25% in Convergence objective areas;· Up to 20% in other areas.781. Investments concerning primary agricultural processing and marketing where theend products are nonAnnex1 will be funded in accordance with the SME blockexemptions (Commission Regulation 70/2001: state aid to small and mediumenterprises).782. In all cases, large companies (in excess of 750 employees or with a turnover ofmore than €200 million) will be subject to de minimis support under CommissionRegulation 1998/2006.



RDPE Measure Code 124- Cooperation for development of new products, processes and technologies


784. The Government’s Strategy for Sustainable Farming and Food (SFFS)recognised the importance of reconnecting all elements of the food chain, and inparticular farmers with their markets. Strengthening links between the various elementsof the chain through cooperation and collaboration is seen to be a key element inachieving this objective. The SFFS emphasised the importance of reducing

51

unnecessary costs, improving efficiency along the food chain, and adding value toproduction. It also noted that a drive for added value is likely to go hand in hand with thepursuit of higher quality.785. In the nonfoodsector, the joint Defra/DTI Strategy for nonfoodcrops and uses,launched in 2004, confirmed the Government’s commitment to the development ofrenewable materials, including those derived from forestry to provide energy, fuels andindustrial products. The Government recognised the potential of these sectors and thekey part they play in helping to meet sustainable development targets, as well asbringing benefits to industry competitiveness, the rural economy, and the environment.The Strategy provides a detailed action plan aimed at building supply chains andfacilitating the future growth of renewables markets.786. The development of new products, processes and technologies has an importantrole to play in achieving the aims of both these strategies. By collaborating to poolresources and knowledge, businesses will be better able to pursue the developmentand uptake of more efficient ways of working and to exploit, for example, the growingdemand for quality foods and renewable raw materials such as wood fuel. However,the investment and knowledge base necessary to do this is beyond the reach of manyof the, often small, businesses that make up the agriculture, food and forestry sectors.As a result, the sector is less able, without intervention, to invest in the researchnecessary to innovate successfully.787. Intervention is therefore required to correct two basic market failures: first, theproblem in providing the assets required for innovation; and second, the informationasymmetry which causes innovation to be constrained by uncertainty about the payoffsfrom risky investments. It is also required to overcome the barriers which preventbusinesses from collaborating. One of these barriers is the transaction cost, particularlyin terms of time, that one business faces if it wishes to collaborate with another. Use ofthis measure will reduce those transaction costs by providing funds for the infrastructurethat supports collaboration.788. Collaboration can be beneficial to producers and processors for a number ofother reasons. Vertical collaboration brings producers closer to their markets, enablingthem to respond more effectively to consumer demand. Collaborating with retailers andprocessors can also improve traceability and ensure consistent quality. Horizontalcollaboration between producers can provide economies of scale, spread risk, and

52

facilitate efficient investment. Greater collaboration is particularly desirable at thepresent time because of the need for the English agricultural sector to become moremarketorientated,and able to deal with issues such as risk.789. The rationale relating to the need to add value to forest products in outlined inmeasure 123.790. Measure 123 is restricted to microenterprises,but developing new products andprocesses can require capital investment beyond the means of such businesses. It istherefore necessary to implement this measure to enable more major and large scaleinnovations to be pursued, as cooperative ventures. Linkage between growers andproducers can also be very critical in terms of security of supply and market for aninnovative product, and this measure specifically facilitates this.

Objectives of the Intervention 791. To ensure that the agriculture and food sector can take advantage of market

opportunities through widespread innovative approaches in developing new products,processes and technologies. For this purpose, cooperation between farmers, the foodand the raw materials processing industry and other parties should be encouraged.792. To promote cooperation between producers and processors to developinnovative uses for forest products, this will in turn lead to management of woodlands,which protects their pubic interest and enhances the public benefits.






53



793. Broadly as per measure 123, though support will also be available under thismeasure to support the transaction costs, particularly in terms of time, of collaborationbut each must involve collaboration between two or more producers, processors orother enterprises.

Type of Support

797. The following will be considered to be eligible costs:· preparatory operations such as design, product, process or technology developmentand tests and other tangible and/or intangible investments related to the cooperation(such as legal fees/accountancy costs), before the use of the newly developedproducts, processes and technologies for commercial purposes.

Beneficiaries 794. Eligible beneficiaries under this measure are:· primary producers in agriculture and forestry, the processing industry and/or thirdparties (no limitation in size);· partners involved in the cooperation projects.795. Support under the measure will be available to all sectors of the agriculture,forestry and food industries. Potential partners in cooperation include farmers, foodmanufacturers and processors, food retailers and distributors, forestry enterprises, rawmaterials processors, manufacturers and distributors of inputs, trade associations, levyboards and research establishments.

Total Cost 40% of measureIntervention 798. Investments concerning primary agricultural processing and marketing will be

funded subject to limits imposed by the SME block exemptions under Commission54

Rate (%) Regulation 70/2001 (state aid to small and medium sized enterprises), though nonSMEswill require separate notification.5218799. No additional national aid will be used to support interventions under thismeasure.


.



Equine Business Group


Type of Support


55



798. Investments concerning primary agricultural processing and marketing will befunded subject to limits imposed by the SME block exemptions under CommissionRegulation 70/2001 (state aid to small and medium sized enterprises), though nonSMEswill require separate notification.5218799. No additional national aid will be used to support interventions under thismeasure.




Sustainable Biomass

793. Broadly as per measure 123, though support will also be available under thismeasure to support the transaction costs, particularly in terms of time, of collaborationbut each must involve collaboration between two or more producers, processors or

56

other enterprises.

Type of Support





Coverage MerseysideIndicators and

57

Targets



Rural Retail, Business Improvement


Type of Support


Beneficiaries 794. Eligible beneficiaries under this measure are:· primary producers in agriculture and forestry, the processing industry and/or thirdparties (no limitation in size);· partners involved in the cooperation projects.795. Support under the measure will be available to all sectors of the agriculture,forestry and food industries. Potential partners in cooperation include farmers, foodmanufacturers and processors, food retailers and distributors, forestry enterprises, raw

58

materials processors, manufacturers and distributors of inputs, trade associations, levyboards and research establishments.






Attractions and Tourism


59








ACTIVITY SIXDescription of

60

Proposed Activity



Type of Support




798. Investments concerning primary agricultural processing and marketing will befunded subject to limits imposed by the SME block exemptions under CommissionRegulation 70/2001 (state aid to small and medium sized enterprises), though nonSMEswill require separate notification.5218799. No additional national aid will be used to support interventions under this

61

measure.



RDPE Measure Code 311 – Diversification into non-agricultural activities


1187. Agriculture is going through some key economic changes at the current time,particularly influenced by the 2003 CAP reforms, which will further expose farmers tomarket forces and free them from the constraints of coupled direct payments, but alsoprovides new business challenges. Benefits of farm diversification to farms are clear,with diversified enterprises providing a quarter or more of total farm incomes in over halfof businesses with diversified enterprises. Grant funding for farms can also help tolever in other forms of investment, contributing to the viability of farms through buildingcapacity and increasing the scale of operation. Farm diversification can also have widerbenefits beyond the farm gate, especially where there are linkages between farms andthe local economy, including increased employment opportunities, although evidencefor this is less clear cut. Care must be taken to ensure that projects deliver additionality,and do not displace other similar business enterprises that are not supported by publicfunds. There is therefore a need to take a targeted approach, with the focus onproviding a clear benefit that would not otherwise be delivered


1188. The objective of this measure is to support farm business restructuring throughthe development of diversified activities that provide alternative income sources.

62

Allocation (%) 40% of axis







Type of Support

Development, improvement and advise to existing diversification and the creation of new attractions, ventures and cooperative ventures.

grant aid towards the costs of capital investment; start-up revenue costs; market research and feasibility studies; marketing support, product development, branding and design costs; technical skills acquisition, coaching and mentoring support; bespoke training intrinsic to individual project applications; technical support to help new businesses become established and to help existing

businesses to consolidate and expand.

Beneficiaries Support under this measure will only be available to members of a farmhousehold as defined:

63

“a natural or legal person or a group of natural or legal persons, whatever legalstatus is granted to the group and its members by national law, with theexception of farm workers. Where a member of the farm household is a legalperson or group of legal persons, that member must exercise an agriculturalactivity on the farm at the time of the support application.”

Total Cost60%


1192. The rates of aid intensity under this measure will be up to 50%, depending on theextent of commercial return and limits imposed by the de minimis rules.




Equine business group,Improvement, accreditation, quality control and construction of strategic requirements in the equine sector in Merseyside.

Type of Support




64

Beneficiaries Support under this measure will only be available to members of a farmhousehold as defined:“a natural or legal person or a group of natural or legal persons, whatever legalstatus is granted to the group and its members by national law, with theexception of farm workers. Where a member of the farm household is a legalperson or group of legal persons, that member must exercise an agriculturalactivity on the farm at the time of the support application.”

Total Cost 20%






Energy Supply Cooperative,Formation of a ccop to supply and deliver alternative renewable energy sources. Initially aimed at biomass supply and delivery the remit could be extended to anerobic digestion, oil and starch crops.

Type of Support


grant aid towards the costs of capital investment; start-up revenue costs; market research and feasibility studies; marketing support, product development, branding and design costs; technical skills acquisition, coaching and mentoring support; bespoke training intrinsic to individual project applications;

65

technical support to help new businesses become established and to help existing businesses to consolidate and expand.


Total Cost10%






Rural Retail, Business improvement

Type of Support


grant aid towards the costs of capital investment;

66

start-up revenue costs; market research and feasibility studies; marketing support, product development, branding and design costs; technical skills acquisition, coaching and mentoring support; bespoke training intrinsic to individual project applications; technical support to help new businesses become established and to help existing



Total Cost10%





ACTIVITY FIVEDescription of Proposed


67

Activity Recycling And Carbon Audit, Addressing waste, energy and carbon foot print of rural business

Type of Support





Total Cost



CoverageIndicators and Targets


68



Type of Support





Total Cost



CoverageIndicators and Targets

69


RDPE Measure Code 312 – Support creation & development of micro-enterprises


In England micro-enterprises account for approximately 91% of the total numberof firms in rural areas and form a vital component of the rural economy providing jobsand underpinning social cohesion. With appropriate help, many micro businesses couldbe established or expanded to stimulate economic growth, innovation, competitivenessand to create employment opportunities, thus contributing to the EU’s Lisbon agenda.Micro enterprises can also be social enterprises42. Social enterprises are aneffective way of delivering and maintaining services, maintaining employment andproviding local solutions to local problems. There is an opportunity to provide supportfor the development of sustainable rural social enterprises to help improve access toservices and opportunities in rural areas.


1196. Support for the creation and development of microenterpriseswith a view topromoting entrepreneurship and creating employment opportunities. Given the highproportion of microenterprisesamong rural businesses, a key objective of the measurewill be support for achieving the growth aspirations of small rural businesses.



70





1198. This measure will provide support to existing microenterprisesor to personswishing to set up a new microenterprise.While a definitive list of such activities cannotbe provided, activities that might be supported include:· retailing, manufacturing or service industries, including selfmadeproducts,recreation, equestrian and creative industries;· environmental technologies and services, including the traditional trades required tomaintain and enhance the landscape;· renewable energy (planting support and forestry processing activity eligible underother measures will not be eligible under this measure);

Type of Support

1199. The following costs will be eligible for support under this measure:· grant aid towards the costs of capital investment;· startuprevenue costs;· market research and feasibility studies;· marketing support, product development, branding and design costs;technical skills acquisition, coaching and mentoring support;

71

· bespoke training intrinsic to individual project applications· technical support to help new businesses and social enterprises become establishedand to help existing businesses and social enterprises to consolidate and expand.

Beneficiaries 1197. Eligible beneficiaries under this measure are:· microenterprises as defined in the Commission Recommendation 2003/361/EC 342 ;· existing microenterprises or persons wishing to set up a new microenterprise.

Total Cost 20%




.



Equine Business Group

1198. This measure will provide support to existing microenterprisesor to personswishing to set up a new microenterprise.While a definitive list of such activities cannotbe provided, activities that might be supported include:· retailing, manufacturing or service industries, including selfmadeproducts,recreation, equestrian and creative industries;· environmental technologies and services, including the traditional trades required to

72

maintain and enhance the landscape;· renewable energy (planting support and forestry processing activity eligible underother measures will not be eligible under this measure);

Type of Support

1199. The following costs will be eligible for support under this measure:· grant aid towards the costs of capital investment;· startuprevenue costs;· market research and feasibility studies;· marketing support, product development, branding and design costs;technical skills acquisition, coaching and mentoring support;· bespoke training intrinsic to individual project applications· technical support to help new businesses and social enterprises become establishedand to help existing businesses and social enterprises to consolidate and expand.


Total Cost20%




Delivery Area Merseyside

73

Demarcation .


Sustainable Biomass,


Type of Support


74


Total Cost20%






Rural Retail, Business Improvement

1198. This measure will provide support to existing microenterprisesor to personswishing to set up a new microenterprise.While a definitive list of such activities cannotbe provided, activities that might be supported include:· retailing, manufacturing or service industries, including selfmadeproducts,recreation, equestrian and creative industries;· environmental technologies and services, including the traditional trades required tomaintain and enhance the landscape;· renewable energy (planting support and forestry processing activity eligible under

75

other measures will not be eligible under this measure);

Type of Support



Total Cost20%





76


Attraction and Tourism Development


Type of Support


Beneficiaries 1197. Eligible beneficiaries under this measure are:· microenterprises as defined in the Commission Recommendation 2003/361/EC 342 ;

77

· existing microenterprises or persons wishing to set up a new microenterprise.

Total Cost






Recycling, Energy Audit, Green Footprint


78

Type of Support



Total Cost





79

RDPE Measure Code 313 – Encouragement of tourism


The England Rural Development Programme 2000-2006 (and Objective OneEAGGF) provided substantial investment for new tourist accommodation and inupgrading tourist accommodation, with some associated marketing. In most parts of thecountry, there remains limited justification for public intervention at individual businesslevel except where there are significant wider benefits that can be achieved. However,there are opportunities to improve the services offered and make rural tourism moresustainable, e.g. by forging better links between the businesses and their localenvironmental and cultural assets (including food and drink), and by encouragingcollaboration and more effective use of ICT. There is also the potential for investments inrecreational infrastructure (e.g. long distance walking, cycling and riding routes) todeliver both economic and health benefits. Further progress needs to be made inimproving the environmental performance of the businesses themselves (e.g. throughresource efficiency, adoption of renewable energy; and promoting the use of publictransport and car-free holidays). It is in areas such as these that targeted intervention isneeded.Rural tourism activity is fundamentally linked to the local environmental,landscape and heritage offer. As such, sustainable tourism is a priority area ofdevelopment for rural tourism in England. Designated land, such as National Parks,indicates landscapes of national importance and therefore where there are in particularwider public benefits from managing visitor impacts sustainably and effectively. Inaddition, some regions have identified fragile environments as being especiallyvulnerable to visitor impacts.Encouragement of rural tourism activities is also important for rural employment.Rural tourism can also benefit from close links with agriculture, through its role inlandscape management, diversifying into provision of tourism services and throughlinkages with regional and local food which form part of the offer to tourists.Encouraging collaboration between food and tourism businesses would increase localrural economic benefits, such as employment, from tourism. Regions have alsoidentified specific rural tourism business needs, such as increased use of ICT.


1205. To use the natural and cultural resources in England’s rural areas to attractvisitors and create new employment opportunities through the development of thetourism sector of the rural economy. To make rural tourism businesses more

80

sustainable through collaboration, resource efficiency (including the management ofvisitor impacts) and effective use of ICT.

Allocation (%) 20% of Axis

Equal Opportunities All businesses and individuals will be assessed, assisted or signposted equally based on need. Additional systems will be put in place to

eliminate any barrier that may hinder an individuals or companies ability to access the project.




Attraction and Tourism development,1207. Support under this measure will be targeted primarily towards the developmentand marketing of tourism services relating to rural tourism, for example:small scale infrastructure such as information centres and the signposting and Interpretation of tourist sites;· recreational infrastructure such as that offering access to natural areas and the historic environment;· small capacity accommodation provision and upgrading of existing provision when justified by significant wider benefits; the development and/or marketing of rural tourism services; assisting tourism providers to develop clusters and business initiatives to meet visitor needs and market their products and services; networking and collaboration within the tourism industry including benchmarking; supporting the development of new niche markets e.g. ‘green tourism’; promotion of quality regional and local food culture and rural crafts linked to tourism; improved information and booking arrangements, including e tourism and other use of ICT.

Type of Support

1208. Support will be provided through:· grant aid towards the costs of smallscale capital investments; feasibility studies and startup revenue costs;· cost of establishing collaborative initiatives; marketing support and market development activities; bespoke training intrinsic to individual projects technical support to help new businesses become

81

established and to help existingbusinesses to improve the quality of their services, consolidate and expand.

Beneficiaries 1206. This measure will provide support to existing tourism enterprises located in, andtourism related organisations operating in, rural areas, and to persons wishing to set upnew rural tourism enterprises.

Total Cost 100%Intervention Rate (%)

1209. The rates of aid intensity under this measure will be up to 100%, depending onthe extent of commercial return and limits imposed by the de minimis rules.



82

83

Documents

20Plan_15oct2007