RURAL GRANT FUNDING OVERVIEW

RURAL GRANT FUNDING OVERVIEW February 2016 Farms Department Fisher German LLP Chartered Surveyors 40 High Street Market Harborough Leicestershire LE16 7NX

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

1.0 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. 1

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 1 st 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 1 st 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 31 st March 2016. Tree planting minimum total area 3 ha in minimum 0.5ha blocks. Natural England Grants up to 6,800. 2

Forestry Innovation Fund Open, applications submitted by 15 th February 2016. Woodland Plans completed 31 st March 2016 Creation of largescale productive woodlands. Forestry Commission 150 per hectare Agri-tech Growth Fund Open, Region specific, (Cambridgeshire, Hertfordshire, Rutland, Norfolk, Suffolk and Lincolnshire). Deadline 31 st 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 18 th March 2016). Infrastructure, investment and management schemes. Severn Trent Water Payments up to 5,000. AHDB Farmer Innovation Grant Closed, (7 th 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 - 3

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. 4

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 27 th November 2015 Northamptonshire 50k- 140k 27 th November 2015 Hants/Surrey 50k- 140k 8 th January 2016 Bucks/Thames 50k- 150k 8 th January 2016 Stoke/Staffordshire 50k- 140k 8 th January 2016 Dorset 50k- 140k 8 th 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 5

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 6

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. 7

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 1 st 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; 8

- 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 9

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. 10

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. 11

5.1 Table 3 Outlining Potential Combinations of Grant Funding Currently In Place Environmental Stewardship Agreement Can Countryside Stewardship Elements Be Added 2015 water capital grant Yes Environmental Stewardship Agreement Environmental Stewardship Agreement EWGS 2016 onwards standalone water grant 2016 onwards Mid-Tier multiyear agreement 2016 onwards Mid-Tier multiyear agreement Yes No (unless it expires before Jan 2016) Yes if it relates to different parcel(s) on your land 2015 Water Grant 2016 Mid-Tier Multi-Year Agreement 2015 Water Grant 2016 Hedgerows and Boundaries Yes 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. 12

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 13

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 14