Agriculture by Choice Program. GUIDELINES April 1, March 31, 2018
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1 Agriculture by Choice Program GUIDELINES April 1, March 31, 2018
2 Agriculture by Choice Program Implementation Guidelines The Agriculture by Choice program is to promote the agricultural sector and its connection to healthy lifestyles, both to the general public and to potential Beginning Farmers. It will also be used to support youth training initiatives and recent entrants to agriculture in the crucial early establishment period. Objectives: To introduce New Brunswickers to the benefits of retaining and enhancing food production in New Brunswick, both in terms of economic activity and for more healthy lifestyles; To establish an awareness of the role that New Brunswick agriculture can play in providing healthy food for our local communities and the world; To utilize agricultural concepts, techniques and technologies to illustrate and promote understanding of science and environmental responsibility in New Brunswick students; To establish linkages between New Brunswick producers and schools in agriculture awareness activities; To encourage Beginning Farmers to enter into the agricultural community in New Brunswick and help them choose the type of farming best suited to their capacity through a better understanding of their strengths, weaknesses and training needs; To assist Beginning Farmers to evaluate their current business situation and to undertake formal planning and training to address their needs; To establish a mentoring process for Beginning Farmers to learn from successful New Brunswick agricultural producers who can provide advice during the crucial early establishment period; To enhance the ability of Beginning Farmers to innovate, to identify potential savings and/or revenues, benchmark their operation relative to others, respond to change and maximize the use of comprehensive risk management options for their operations; To enable Beginning Farmers to identify and prioritize their business goals and undertake the activities to acquire the management and technical skills required to meet those objectives. To provide assistance for strategic projects with significant benefit to the agricultural sector(s). To assist Beginning Farmers who are entering or transitioning to organic farming. Eligible Applicants: Eligible applicants include agricultural producer associations, groups of agriculture producers, New Brunswick Young Farmers Forum, agricultural mentors, parties with the Page 2 of 12
3 capacity to develop and deliver awareness programming in educational settings and Beginning Farmers in Agriculture residing in the Province of New Brunswick. A Beginning Farmer in Agriculture is defined as an individual who has not filed income tax as a farmer for more than 5 years, or has not owned shares in a farming corporation for more than 5 years; and has had (or plans to have within 3 years) gross farm income in excess of $10,000 per year. Beginning Farmers are eligible under the Agriculture by Choice program for a maximum of 5 years starting with the first year they file an Income Tax Form as a farmer, farm corporation or partnership. Verification of the first year of eligibility under the Initiative will be required. Program Elements: A - Agriculture in Education Eligible Activities: Support for development of promotional and training activities for agricultural awareness including the design, preparation and distribution of materials. Support to develop programming and assist producers to link with schools and the public in their efforts to promote the agriculture sector. Eligible Costs and Level of Assistance: Assistance towards eligible incremental costs directly related to the project including: Assistance toward the costs for development of manuals, videos, websites, educational materials, publications and other agricultural awareness resources; Support for the cost associated with agricultural information training and education campaigns, including but not limited to guest speakers, school field trips, agribusiness / farm tours, and agricultural product showcase. Up to 100% of eligible costs for eligible organizations, to a maximum contribution of $ per project; Other costs approved by the Department of Agriculture, Aquaculture and Fisheries considered essential for the successful completion of the project; Higher levels of assistance may be considered for strategic projects with significant benefit to the agricultural sector(s). Normal on-going operating and maintenance cost and on-going projects, capital purchases and honorariums or salaries for staff or producer members are not eligible activities/costs. For further details, please refer to How to Apply for Funding for Agriculture in Education. Page 3 of 12
4 B - Beginning Farmers Self-Assessment and Action Plan Eligible Activities: The Beginning Farmers Self-Assessment Initiative enables participants to identify strengths, weaknesses, goals and priorities relating to their business management skills and to develop an Action Plan for themselves and their business. Beginning Farmers complete a self assessment workbook and identify goals to develop an Action Plan for their businesses on their own. Beginning Farmers who have completed the self assessment workbook are eligible for an on-farm follow-up session to finalize their Action Plan, or to evaluate progress and implementation of their Action Plan within a year of completing the self assessment workbook). Beginning Farmers with an approved Action Plan may be eligible for a greater rate of cost sharing when accessing other Growing Forward 2 Developing Management Skills and Growing Forward 2 Agriculture by Choice Program elements. Eligible Costs and Level of Assistance: There is no cost to participants for this initiative. For further details or to get copies of the self assessment workbook, please contact the Growing Forward 2 Administrator at (506) or GFCA.admin@gnb.ca. Page 4 of 12
5 C - Beginning Farmers Planning Eligible Activities: Activities that assist Beginning Farmers in agriculture to undertake, develop, and implement formal plans or analysis for their operation, which may include financial, business, marketing, human resource management, diversification, value-added or succession plans. (Prior to approval of a value-added plan, a positive feasibility study must be completed. Both the feasibility study and the value-added plan are eligible activities.) Eligible Costs and Level of Assistance: Assistance for eligible applicants over the life of the program may be up to: 60% of the eligible cost of developing and implementing a formal financial, business, marketing, human resource management or diversification plan, to a maximum contribution of $6,000 per applicant; 60% of the eligible cost of developing and implementing a Succession Plan, to a maximum contribution of $12,000; 60% of the eligible cost of developing and implementing a value-added business plan (and/or a value-added feasibility study), to a maximum contribution of $12,000. Individual applicants who have completed the Beginning Farmer Self Assessment activity and have an Approved Action Plan for their business are eligible for a 70% contribution to their approved planning activity to a maximum contribution of $7,000 for a formal business plan, or $14,000 for a succession plan or a value-added plan. Eligible costs include professional fees and services related to development and implementation of plans or feasibility studies, and other costs approved by New Brunswick Department of Agriculture, Aquaculture and Fisheries which are considered essential for the successful completion of the project. For further details, please refer to How to Apply for Funding for Planning. Page 5 of 12
6 D - Beginning Farmer Training (Individual) Eligible Activities: Assistance to individual Beginning Farmers in Agriculture for strategic agriculture related training, technical skills development and business development initiatives that support the strengthening of management practices and skills that enhance the viability and profitability of their individual enterprises. Eligible activities include: Participation in, and support for, strategic events and projects promoting new training or management concepts, embracing new technology, investigative travel, skills development and evaluating innovative activities. Projects focused on specialized training for Beginning Farmers or their employees relating to marketing, business and human resource management, production, innovation, or technology, which clearly demonstrate increased benefits to the farm business. Support for Beginning Farmers who are entering or transitioning to organic farming. Eligible Costs and Level of Assistance: Assistance towards eligible incremental costs directly related to the project including: registration fees; costs of acquiring on- and off-farm related training, travel meals and accommodation (not to exceed the rates set out in the Province of New Brunswick Travel Directive); or other costs approved by New Brunswick Department of Agriculture, Aquaculture and Fisheries considered essential for the successful completion of the project. Up to 70% of registration fees and up to 50% of the other eligible costs for training to a maximum contribution of $4,500 per project. Maximum assistance allowed per applicant is $9,000 in each fiscal year (April 1- March 31). Applicants who have an approved Action Plan from the Beginning Farmer Self Assessment Initiative are eligible for a contribution of up to 80% of registration fees and up to 60% of the other eligible costs to a maximum of $5,400 per project. Maximum assistance allowed per applicant is $10,800 in each fiscal year (April 1- March 31). Up to 70% of cost related to the annual organic certification fees to a maximum of $500 in each fiscal year. For further details, please refer to How to Apply for Funding for Training. Page 6 of 12
7 E - Beginning Farmer Benchmarking (Individual) Eligible Activities: Support for development of cost of production (COP) analysis and benchmarking activities enable Beginning Farmers in Agriculture to have the information to enhance the viability and profitability of their business. Eligible Costs and Level of Assistance: 60% of the eligible costs of a consultant to assist an individual to benchmark their operation against a New Brunswick Cost of Production (COP) or other approved COP to a maximum contribution of $3,000 over the duration of the program. Applicants who have an approved Action Plan from the Beginning Farmer Self Assessment Initiative are eligible for a contribution of 70% of eligible costs to a maximum of $3,500 over the life of the program. For further details, please refer to: How to Apply for Funding for Benchmarking. Page 7 of 12
8 F - Beginning Farmers Group Training Assistance to establish peer-to-peer training clubs for Beginning Farmers to enable them to network and share experiences and needs to better manage their operations. Groups and organizations are eligible for assistance to champion training activities for workshops, speakers and investigative travel that focus on Beginning Farmers in agriculture and their needs. Eligible Activities: Eligible activities include: Participation in, and support for, strategic events and projects promoting new training concepts, embracing new technology, group investigative travel, skills development and evaluating innovative activities. Beginning Farmer projects focused on specialized training for farm managers or their employees relating to marketing, business and human resource management, production, innovation, technical skills or technology, which clearly demonstrate increased benefits to the farm business. Assistance to establish a Beginning Farmer in Agriculture peer-to-peer training club. Eligible Costs and Level of Assistance: 100% of the eligible cost of developing and establishing a peer-to-peer training club for a group of Beginning Farmers in Agriculture with a maximum contribution of $10,000 over the life of the program per club. A minimum of 8 Beginning Farmers in Agriculture are required to establish a club. Contribution towards eligible incremental costs directly related to a training project including: registration fees; costs of acquiring on- and off-farm related training, rental of facilities and specialized equipment; consultant or speaker fees and costs; travel, meals and accommodation (not to exceed the rates set out in the Province of New Brunswick Travel Directive); or other costs approved by the New Brunswick Department of Agriculture, Aquaculture and Fisheries considered essential for the successful completion of the project. Projects may be assisted up to 60% of eligible costs for a group of up to 8 Beginning Farmers in agriculture to attend a strategic conference or engage in investigative travel. Maximum assistance per project is $10,000 for groups of Beginning Farmers in Agriculture or activities targeted at groups of Beginning Farmers in Agriculture. Maximum assistance per applicant is $20,000 per fiscal year (April 1- March 31). Higher levels of assistance may be considered for strategic projects with significant benefit to the agricultural sector(s). Nutrition breaks and lunches at group meetings, conferences or training sessions are not eligible expenses and should be covered by event registration fees. Page 8 of 12
9 For further details, please refer to: How to Apply for Funding for Beginning Farmer Group Training. Page 9 of 12
10 G - Beginning Farmer Mentoring Assistance to encourage one-on-one mentoring activities that target the training needs of Beginning Farmers in Agriculture. Eligible Applicants: Beginning Farmers or Agricultural Organizations offering a mentorship program. Eligible Activities include: Initial meetings between the mentor and mentee and visits to their respective operations to determine if there is potential for a mentoring relationship; Development of a training plan between the mentor and mentee that supports increased understanding and application of business management skills and practices; Mentoring activities benefiting the Beginning Farmer in Agriculture. Eligible Costs and Levels of Assistance: Up to 70% of approved training expenses (receipts required) incurred by the mentor as required to provide guidance to the mentee to a maximum of $500; and Up to 70% of the Honoraria to mentor, travel, meals and accommodation for mentor or mentee visits (not to exceed the rates set out in the Province of New Brunswick Travel Directive) to a maximum contribution of $2,000 to complete the training plan that was developed.. Maximum assistance per Beginning Farmer in agriculture mentor / mentee relationship is $4,000 over the duration of the program. For further details, please refer to: How to Apply for Funding for Beginning Farmer Mentoring. Page 10 of 12
11 Administration Program Duration: The Agriculture by Choice Program will operate from April 1, 2013 to March 31, 2018, unless otherwise announced. Submitted projects must demonstrate capability of achieving desired results within the program timeframe. Project approvals are based on an approval within one fiscal year (April 1 to March 31) only. Multi-year projects are based on approval within one fiscal year, must be resubmitted for approval each year and are subject to satisfactory progress in the preceding year(s). Application Process: Clients are responsible to submit an application under Growing Forward 2 (GF2), together with any required supporting documents (project details, cost information and consultants quotes/estimates), to any Department of Agriculture, Aquaculture and Fisheries (DAAF) regional office or directly to the Growing Forward Administrator, Department of Agriculture, Aquaculture and Fisheries, P.O. Box 6000, Fredericton, NB E3B 5H1, or by to GFCA.admin@gnb.ca. Upon project decision, the applicant will be notified in writing. A Project Officer will be appointed for each project to ensure applicable financial and administrative procedures; timelines and reporting requirement are followed. Costs incurred prior to the date as specified in the written project letter of offer will not be eligible. Applicant Responsibilities: It is expected that successful applicants will administer the contribution to their project, and that adequate financial and administrative procedures are in place. If adequate financial and administrative procedures are not available, the applicant must involve another capable organization in the project and its administration. If no acceptable organization can be found, the New Brunswick Department of Agriculture, Aquaculture and Fisheries may administer the funds upon the request of the client. If approved, administration charges shall not exceed 10% of the approved contribution and are based on actual project funds administered by the applicant. The eligible administration costs are based on those expenses invoiced to and paid directly by the applicant and claimed as eligible expenses through the project. The Applicant must agree to provide access to records and/or premises to staff of DAAF and persons authorized by DAAF for inspection, evaluation, demonstration, audit and public information purposes upon request; provide DAAF any necessary information related to the evaluation of the project and demonstrate a significant contribution to the project. Successful applicants agree to participate in follow up surveys, either by mail, phone or electronically following completion of the project. Consolidated information will be used for program evaluation and policy development. Page 11 of 12
12 Advances: Upon request, advances may be provided to the successful applicant. Initial advances on project costs may be obtained for up to 50% of the approved project amount. Dependent upon the nature of the project, a subsequent advance for up to 50% of the remaining approved project amount may be provided once a claim for the initial advance has been processed and the project officer has certified that project activities are meeting their projected targets. Submission of Claim: Upon project completion, the completed Claim for Reimbursement and Feedback on the Agriculture by Choice Program forms must be forwarded to the designated Project Officer. These forms must be submitted together with the original detailed invoice (a copy of the original detailed invoice may also be accepted if signed by the vendor) and proof of payment which may include either an original paid in-full invoice signed by vendor, an original receipt or a cancelled cheque. Travel costs are not to exceed New Brunswick provincial government rates as prescribed in the provincial Travel Directive. The non-reimbursable portion of HST may be provided as an eligible cost for certain organizations (i.e. Not-for-profit organizations). Appropriate documentation showing the applicant s eligibility for HST reimbursement must be provided at the time of the application. Any amounts for HST reimbursement requested must be included in the project budget form. Arm s Length Transactions: All businesses from which eligible goods and services are purchased should be at arm s length from the applicant. A person or entity is considered to be at arm s length if they are not related to the applicant, and are not affiliated or controlled by another member of the applicant s business. Related individuals are defined as those that are connected by blood relationship, marriage, common-law partnership or adoption. Project Reporting: If necessary, applicants are required to submit an interim report for multi-year projects and a final report following project completion. Final reports must be submitted no later than forty-five (45) days after the approved project completion date. A portion of the approved funding may be held back until the required final report, satisfactory to the project officer, has been submitted and is complete. Failure to submit an acceptable final and/or summary report may affect funding approval decisions for future projects. Unless otherwise specified in a written agreement between the Applicants, the results from the project may be published. The Department of Agriculture, Aquaculture and Fisheries, reserves the right to terminate this program or to modify these Guidelines at any time without notice. Page 12 of 12
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