February 2016

Farms Department

Fisher German LLP Chartered Surveyors

40 High Street

Market Harborough

Leicestershire

LE16 7NX

RURAL GRANT FUNDING

OVERVIEW

Contents

1.0 OVERVIEW & HOW WE CAN HELP .................................................................................................................. 1

1.1 Table 1 Grant Summary Overview (at February 2016) ......................................................................... 2

2.0 GROWTH PROGRAMME ................................................................................................................................... 4

2.1 SCHEME OVERVIEW ................................................................................................................................. 4

2.2 LOCAL ENTERPRISE PARTNERSHIPS (LEPS) ............................................................................................ 4

2.2.1 Table 2 Growth Funds (Rural Development) Calls ............................................................................. 5

2.3 SIZE OF GRANT AVAILABLE ..................................................................................................................... 5

2.4 HOW TO APPLY ......................................................................................................................................... 5

3.0 LEADER GRANTS ................................................................................................................................................ 6

3.1 LOCAL ACTION GROUPS (LAGS) .......................................................................................................... 6

3.2 EXAMPLES .................................................................................................................................................. 7

3.3 HOW TO APPLY ......................................................................................................................................... 7

4.0 OTHER CAPITAL GRANTS .................................................................................................................................. 7

4.1 CATCHMENT SENSITIVE FARMING ......................................................................................................... 7

4.2 BOUNDARIES & HEDGES ......................................................................................................................... 8

4.3 WOODLAND CREATION GRANTS .......................................................................................................... 8

4.4 WOODLAND IMPROVEMENT ................................................................................................................. 8

4.5 SUPPORT FOR WOODLAND MANAGEMENT PLAN ............................................................................. 9

4.6 WOODLAND TREE HEALTH - RESTORATION .......................................................................................... 9

4.7 COUNTRYSIDE PRODUCTIVITY ................................................................................................................ 9

4.8 FORESTRY INNOVATION ........................................................................................................................ 10

4.9 AGRI-TECH GROWTH FUND .................................................................................................................. 10

4.10 SEVERN TRENT ENVIRONMENTAL PROTECTION SCHEME (STEPS) ................................................. 10

4.11 AHDB FARMER INNOVATION GRANT ............................................................................................... 10

4.12 CONCLUSION ....................................................................................................................................... 11

5.0 COUNTRYSIDE STEWARDSHIP ........................................................................................................................ 11

5.1 Table 3 Outlining Potential Combinations of Grant Funding ............................................................ 12

5.2 Table 4 Outlining Potential Combinations of Grant Funding ............................................................ 12

5.3 Table 5 Possible Combinations of ES/EWGS Agreements and Countryside Stewardship Capital

Grant Elements ................................................................................................................................................. 13

6.0 USEFUL LINKS .................................................................................................................................................... 14

1

1.0 OVERVIEW & HOW WE CAN HELP

Across England today there are grants available to help provide money for projects to improve

agriculture, the environment and rural life. Funding aims to improve the environment, increase the

productivity of farming and forestry, and grow the rural economy.

With the majority of cases in order to apply for grant funding you must be one of the following;

Managing land or woodland

A farmer, grower or forester

Living in a rural community

A business owner in a rural area

A food business

Fisher German LLP (FG) is nationally recognised in many fields and leading rural estate agents, with

15 offices based throughout the UK, each on hand to provide clients with excellent service and

advice. This document will now outline potential grant funding opportunities, each of which FG can

help with submission of applications. The following table is a summary of all current grants available.

2

1.1 Table 1 Grant Summary Overview (at February 2016)

Grant Availability Type of project

supported

Who

Administrates

Funding Available

Growth

Programme

Open, depending on

Regional deadline.

(Refer to table 2).

Rural business

development.

Local Enterprise

Partnerships

(LEPs).

From £35,000 -

£140,000.

LEADER Grants

Open, depending on

regional deadline.

Two-stage

application process.

Rural business

and economy

development.

Creation of jobs

and tourism.

Local Action

Groups (LAGs).

40% of a projects

eligible cost

typically between

£2,500 and

£50,000.

Countryside

Productivity

Closed. Rural

Payment Agency

(RPA) to confirm

when re-opens.

Project

Innovation in

linking research

with farming or

forestry practices.

Rural Payment

Agency. Up to £1,000,000.

Countryside

Stewardship

Closed, Application

Window July to

September 2016.

Agreements Starting

1st January 2017.

Environmental

stewardship

(replaces ELS and

HLS)

Natural England

Depending on

Application,

minimum £1,000

per annum.

Catchment

Sensitive

Farming

Closed, Application

Window July to

September 2016.

Agreements Starting

1st January 2017.

Offers capital

grant support. Natural England

Depending on

Application.

Boundary and

Hedgerows Open,

Applications

submitted by 30 April

2016.

Small restoration

projects for

hedgerows and

stone walls.

Natural England Up to £5,000 per

applicant.

Woodland

Creation Open, deadline 31st

March 2016.

Tree planting

minimum total

area 3 ha in

minimum 0.5ha

blocks.

Natural England Grants up to

£6,800.

3

Forestry

Innovation

Fund

Open, applications

submitted by 15th

February 2016.

Woodland Plans

completed 31st

March 2016

Creation of large-

scale productive

woodlands.

Forestry

Commission £150 per hectare

Agri-tech

Growth Fund

Open, Region

specific,

(Cambridgeshire,

Hertfordshire,

Rutland, Norfolk,

Suffolk and

Lincolnshire).

Deadline 31st March

2016.

Food production,

agricultural

industry, research

and

development.

Key priority to

create and

maintain existing

jobs.

Regional Growth

Fund

Between £10,000

- £150,000.

Severn Trent

Environmental

Protection

Scheme

(STEPS)

Open, (deadline 18th

March 2016).

Infrastructure,

investment and

management

schemes.

Severn Trent

Water

Payments up to

£5,000.

AHDB Farmer

Innovation

Grant

Closed, (7th February

2016).

English beef and

sheep farmers

implementing

new technology

AHDB

(Agricultural and

Horticultural

Development

Board)

Payments up to

£5,000.

Woodland

Improvement

Closed, in line with

Countryside

Stewardship.

Improve

biodiversity, water

quality.

Natural England Up to £100 per

hectare.

Support for

Woodland

Management

Open, all year.

Woodland

management

plan

Forestry

Commission -

Woodland

Tree Health -

Restoration

Open, all year. Restocking of

woodland

Forestry

Commission -

4

2.0 GROWTH PROGRAMME

2.1 SCHEME OVERVIEW

A single European Structural and Investment Funds (ESIF) Growth Programme has been set up to

combine three separate European Funds. These are;

European Regional Development Fund (ERDF)

European Social Fund (ESF)

Part of the European Agricultural Fund for Rural Development (EAFRD)

The government has allocated £177 million of rural development funding from EAFRD (European

Agricultural Fund for Rural Development) for grants in the growth programme. These grants are

available for funding and developing micro, small and medium-sized rural businesses including

food processing, small scale tourism infrastructure and tourism co-operation.

Grants are available for investments that will support growth, create new jobs and increase

productivity. Applications must demonstrate the creation of at least two full time equivalent jobs.

The grants are administrated by individual Local Enterprise Partnerships (LEPs).

2.2 LOCAL ENTERPRISE PARTNERSHIPS (LEPS)

Local Enterprise Partnerships (LEPs) are private sector-led partnerships between local authorities

and businesses. Each LEP has set out its ESIF strategy the local priorities for this funding the aim of

which is to achieve economic growth in its area.

There are 39 LEPs covering England, 37 have an allocation of Rural Development funding. To apply

for this funding the project must be located in a rural area in England.

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2.2.1 Table 2 Growth Funds (Rural Development) Calls

Local Enterprise Partnerships Regions Grant Deadline For Applications

Cheshire, Worcs, Leics, Derby, Lancs £50k-£140k 27th November 2015

Northamptonshire £50k-£140k 27th November 2015

Hants/Surrey £50k-£140k 8th January 2016

Bucks/Thames £50k-£150k 8th January 2016

Stoke/Staffordshire £50k-£140k 8th January 2016

Dorset £50k-£140k 8th January 2016

York £35k-£500k 1 April 2016

Hertfordshire £35k-140k 26 August 2016

Cambs/Peterborough £50k-£140k 26 August 2016

Anglia £35k-£140k 30 September 2016

2.3 SIZE OF GRANT AVAILABLE

The grants available range from £35,000 up to approximately £140,000 depending on state aid

already received. Applicants can apply for a grant to cover up to 40% of the projects total eligible

costs.

Applicants must pay for any costs not covered by the grant with private funding, such as savings or

a bank loan, not other public funds. (If private funding isn’t used the RPA may ask the applicant to

repay any grant money already paid and may cancel any future payments).

Funding will be offered to a maximum number of projects, but the actual number of projects

supported may be lower, dependent upon the scale and range of the projects coming forward.

2.4 HOW TO APPLY

There are two stages to the application process. Applications will be assessed at both stages and

only the strongest will be successful. The two stages are:

Stage 1: an outline application

Stage 2: a full application

6

Stage one of the applications needs to be submitted prior to the outlined deadline above. As

emphasised this is a competitive application process and so there is no guarantee that applicants

will be accepted onto the scheme.

3.0 LEADER GRANTS

LEADER is part of the Rural Development Program for England (RDPE) and is administered by Local

Action Groups. The programme can fund farmers, growers, foresters, other local rural businesses

and rural community organisations to help:

Create jobs

Develop rural businesses

Support the rural economy

To be successful, all applicants will be required to operate from within a designated LEADER area

and applications must contribute to one or more of Defra's six priorities for LEADER, which are to:

Increase farm productivity

Support micro and small businesses and farm diversification

Boost rural tourism

Provide rural services

Provide cultural and heritage activities

Increase forestry productivity.

In most cases grants will be up to 40% of a projects eligible cost between £2,500 and £3,500. Each

LAG will have set deadlines and requirements.

3.1 LOCAL ACTION GROUPS (LAGS)

The local action groups are made up of people from the local community and the local public

and private sector. The LAGs decide which projects they will fund in their area depending on the

priorities met. They also set their own application deadlines and funding availability. To find your

local action group, click here

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3.2 EXAMPLES

Farmers Markets – supported them in everything from marketing to marquees.

Farm Shops – to attract more consumers to local business, a caravan site was developed.

Village Windmill - helped fund restoration of historic windmill for local community.

Riding School – helped fund an all-weather flood lit arena and facilities.

Website Development – helped fund local livestock farmer to develop wider customers

audience through new website.

3.3 HOW TO APPLY

The application process involves two application stages made directly to the LAG team. The initial

proposal involves outlining your business details, costs, project objectives, benefits to the area (eg

job creation) and why you require the grant funding.

If the initial application is accepted the full application involves providing information on the

following; business financial accounts, equipment quotes, market research, licences if required for

the project, photos, plans and if required architectural drawings.

4.0 OTHER CAPITAL GRANTS

There were a number of RDPE grants available earlier in the summer, and we would expect some

of these to open another application window in 2016. The grants available can be summarised as

follows;

4.1 CATCHMENT SENSITIVE FARMING

Catchment Sensitive Farming is run by Natural England in coordination with DEFRA and the

Environment Agency. It aims to raise awareness of water pollution from agriculture, on farmland

located in priority catchment areas, and advice is only available for these specific areas. The

designated catchments are those where improvements in water quality will make the maximum

contribution under the Water Framework Directive objectives.

Applications for catchment sensitive farming capital grants were tied in with Countryside

Stewardship applications from July-September. Applicants will be able to apply within next year’s

application window. We would strongly recommend that you contact your local catchment

sensitive funded facilitator for your region if you are interested in this grant funding.

8

Some examples of funding available:

(RP6) Constructed wetlands for the treatment of pollution

(RP9) Earth banks and soil bunds

(RP7) Sediment ponds and traps

(RP10) Silt filtration dams/seepage barriers

(RP16) Rainwater goods

(RP15) Concrete yard renewal

(RP28) Roofing (sprayer wash down area, manure storage area, livestock gathering area, slurry

stores, silage stores)

4.2 BOUNDARIES & HEDGES

These Capital grants are administrated by Natural England and applications can be submitted

from 1st February 2016 and must be received on or before 30 April 2016. Funding is available for

small restoration projects of hedgerows and stone walls, of up to £5,000 per applicant, with a total

of 12 capital items available.

Applications can only be made by those whose SBI (Single Business Identification) will not be in an

Environmental Stewardship, multi-year Countryside Stewardship or English Woodland Grant Scheme

agreement on 1 July 2016. Photographic evidence of capital items will be required to support

applications.

4.3 WOODLAND CREATION GRANTS

Woodland grants are now administrated by Natural England and are available for tree planting,

with the application window in February to March for planting in the autumn. The basic payment

rates are £2,750 per hectare for native trees and £2,250 for non-native trees, as well as capital

payments for tree protection and annual maintenance payments available. The proposed total

planting area must be at least 3 hectares in blocks of at least 0.5 hectares (smaller areas

acceptable if the planting is for water quality enhancement or following a tree health issue).

4.4 WOODLAND IMPROVEMENT

Support for existing woodland is available including capital items and a multi-year maintenance

option. Applicants will need to have a Forestry Commission approved Woodland Management

Plan in place. Applicants need to prove that proposals will have a positive impact on biodiversity,

water quality and flooding, and/or climate change, by meeting one or more of the following

objectives;

9

- Restoring plantations on ancient woodland sites

- Enhancing priority habitats

- Enhancing priority species

- Improving resilience to climate change through continuous cover forestry (CCF)

For example reducing the percentage of coniferous species, regeneration felling to encourage

crown development, cyclical cutting to manage successional scrub, etc. Payment rate of up to

£100 per hectare.

Support is also available for improving access to woodland – eg allowing extraction of timber to

improve management of the woodland.

Examples of capital Items funded under this grant include deer fencing, deer high-seats, tree

shelters, scrub control and felling diseased trees.

Application are submitted in line with Countryside Stewardship as ‘woodland only’ high-tier

applications.

4.5 SUPPORT FOR WOODLAND MANAGEMENT PLAN

Applicants can also obtain support to develop a Woodland Management Plan using the Forestry

Commission template.

4.6 WOODLAND TREE HEALTH - RESTORATION

In the case of woodlands being affected by tree disease, funding is available for restocking of

woodland, including supply of trees, planting, weeding and protection of young trees. In addition,

funding is available for scrub and rhododendron control in woodland affected by Phytophthora

ramorum and Phytophthora kernoviae.

For both woodland management plan and woodland tree health support applications can be

made all year round by completing a form online.

4.7 COUNTRYSIDE PRODUCTIVITY

Grants are available for improvements to animal productivity, health and welfare, arable and

horticulture productivity and resource management. The grant covers up to 40% of the eligible

costs of a project, with funding available up to £1,000,000 per grant. As with previous RDPE grant

10

schemes, standard agricultural equipment and inputs cannot be funded and the costs of obtaining

consents, or costs relating to standard industry obligations are not funded.

4.8 FORESTRY INNOVATION

This new grant scheme, administered by the Forestry Commission, is designed to support the

creation of large-scale productive woodlands. The Woodland Creation Planning Grant of £150 per

hectare is available to landowners for creating a sustainable forest design plan for a new

woodland over 30 hectares, of which 70% should be productive woodland. Applications must be

submitted by 15 February 2016 with woodland plans to be completed by 31 March 2016.

4.9 AGRI-TECH GROWTH FUND

(Cambridgeshire, Hertfordshire, Rutland, Norfolk, Suffolk and Lincolnshire only)

The Eastern Agri-tech Growth Initiative aims to improve food production, the agriculture industry

and related research and development by investing in new market, supply chain and skills

development. Grants of between £10,000 and £150,000 are available for small to medium sized

enterprises (farmers, food manufacturers and retailers) up to a maximum of 25% of the project

costs. Funding is aimed at supporting improvements in agricultural productivity through the

introduction of new products or processes and encourage improvements to existing products or

processes and energy efficiency. A key criteria is the creation of new jobs or protection of existing

jobs. Applications must be made by 31 March 2016.

4.10 SEVERN TRENT ENVIRONMENTAL PROTECTION SCHEME (STEPS)

For farms located within an Environment Agency Safe Guard Zone and within the Severn Trent

Water catchment area, grants are available for infrastructure investments and management

schemes to aid the protection of water courses from diffuse pollution. For example, funding is

available for watercourse fencing, water troughs, biobeds, roofing for slurry/manure stores,

rainwater harvesting, etc. Grants are fixed for each item, and represent approximately 50% of the

cost. STEPS will pay up to £5,000. The current funding is open 1 January 2016 – 18 March 2016.

4.11 AHDB FARMER INNOVATION GRANT

Grants are available for groups (minimum of 3) of English beef and sheep farmers who are

interested in testing or assessing an element of best-practice on farm, or implementing a piece of

new equipment/technology that will help to improve returns for their livestock enterprise. Funding of

up to £5,000 is available, aimed mainly at the provision of technical advice and support, but with

£1,000 available for equipment. Successful applicants will have to report back to AHDB about the

benefits of the system/equipment and possibly hold a farm tour. Funding for 2016 is now closed.

11

4.12 CONCLUSION

Most of these grants require provision of detailed business plans, projected profit and loss

statements and careful consideration of both the financial and intangible benefits to the farm itself

and in some cases the wider community. We have successfully applied for a number of grants for

farm business recently, and so if you are planning a project or capital investment this year it is worth

considering the availability of your eligibility for grant funding.

5.0 COUNTRYSIDE STEWARDSHIP

Countryside Stewardship replaces Entry Level Stewardship and Higher Level Stewardship schemes.

The application period for schemes commencing 1 January 2016 has now closed. The next possible

start date for agreements is therefore 1 January 2017, with the application window in summer 2016

(exact dates to be confirmed).

Natural England received fewer applications for the new scheme than expected and so there may

be more funds available for applications this year, if your existing stewardship scheme terminates

during 2016 or if you do not currently have a scheme in place we can advise you on potential

options and complete the application form and maps on your behalf. Note that there are a

number of changes from the existing Entry and Higher Level Stewardship schemes. In particular the

new schemes are competitive, meaning that options chosen for the land must meet the stated

priorities for the local area. Unlike previous schemes, Countryside Stewardship is not necessarily a

‘whole farm’ scheme, so you can choose which land to include in the scheme. In addition there

are a number of conditions that all farmers in the scheme must meet regardless of the options

chosen such as committing to not cutting hedgerows more than once every two years.

The tables below outline possible relationships with Countryside Stewardship elements and current

Environmental Stewardship and English Woodland Grant Scheme. It may be possible to

apply for Countryside Stewardship on other parcels and areas of the holding. Some possible

combinations are outlined in the following tables.

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5.1 Table 3 Outlining Potential Combinations of Grant Funding

Currently In Place Can Countryside Stewardship Elements Be Added

Environmental Stewardship

Agreement

2015 water capital grant Yes

Environmental Stewardship

Agreement

2016 onwards standalone

water grant

Yes

Environmental Stewardship

Agreement

2016 onwards Mid-Tier multi-

year agreement

No (unless it expires before Jan

2016)

EWGS 2016 onwards Mid-Tier multi-

year agreement

Yes – if it relates to different

parcel(s) on your land

2015 Water Grant 2016 Mid-Tier Multi-Year

Agreement

Yes

2015 Water Grant 2016 Hedgerows and

Boundaries

Yes

Mid-Tier Multi-year Agreement 2016 standalone water grant Yes – if it relates to different

parcel(s) on your land

5.2 Table 4 Outlining Potential Combinations of Grant Funding

Applicant has

now:

Applicant

would like:

Possible to

apply? Notes

ELS, UELS and OELS

agreements expiring

on or before 31

December 2015

Countryside

Stewardship

with a 2016

January start

Yes, most

likely Mid Tier

The agreement starts 1 January 2016

The expectation is that most holdings in

ELS, organic or uplands ELS would move to

the Mid Tier rather than Higher Tier.

ELS, UELS and OELS

agreements expiring

after 31 December

2015

HLS agreement

expiring in 2016

Countryside

Stewardship

with a

January

2016 start

Countryside

Stewardship

with a

January

2016 start

No

Only to

Higher Tier

There are some limited situations eg on

commons where UELS agreement holders

may be invited by Natural England to join

Higher Tier

HLS agreement holders will be contacted

by Natural England to discuss if their

existing agreement meets the objectives

of the new scheme and the criteria for

moving to it.

EWGS agreement

expiring in 2015

Countryside

Stewardship

Yes, (not Mid

Tier if

Woodland

management

included)

Yes, if the EWGS obligations on any

parcels submitted within the Countryside

Stewardship application have expired by

end December in the year before the

January start date.

Discuss with Forestry Commission adviser.

13

5.3 Table 5 Possible Combinations of ES/EWGS Agreements and Countryside Stewardship Capital

Grant Elements

Applicant has

now:

Applicant

would like:

Possible to

apply? Notes

ELS, OELS, UELS and

HLS, or EWGS

Hedgerow and

Boundaries grant No

Grants available if existing

scheme terminates on or before

1st July 2016

ELS, OELS, UELS and

HLS, or EWGS

Feasibility studies and

implementation plans No

These items are not available until

2016

ELS, OELS, UELS and

HLS, or EWGS

CS Woodland tree

health Yes Application period now open

ELS, OELS, UELS and

HLS, or EWGS

CS Woodland

management plan Yes Application period now open

EWGS CS Woodland

creation 2015 Possibly

Applicants can only apply on

parcels

within the estate that don’t have

an existing commitment

Application window now open.

ELS (including UELS

and OELS) and HLS

expiring after 31 Dec

2015

CS Woodland

creation 2015

Possibly –

discuss with

Forestry

Commission

and Natural

England

An amendment will be required

to remove those parcels where

woodland creation will take

place -

such an amendment may require

a

reclaim. Planting could conflict

with

the appropriate management of

some

features that had been

supported

under ELS

ELS, OELS, UELS and

HLS or EWGS

agreement

2015 water grant Yes Closed end April 2015

14

6.0 USEFUL LINKS

For further information please see the following websites:

Rural Development Growth Programme:

https://www.gov.uk/government/collections/growth-programme-grants-for-the-rural-economy

Leader:

https://www.gov.uk/guidance/rural-development-programme-for-england-leader-funding

Countryside Stewardship/ Woodland/ Catchment Sensitive Farming:

https://www.gov.uk/rural-development-programme-for-england