Farmers, woodland owners and forestry contractors can apply for grants under the Countryside Productivity Scheme.
The Countryside Productivity Scheme is part of the Rural Development Programme for England (RDPE). It’s administered by the Rural Payments Agency (RPA).
Farming Minister George Eustice said: "We want the UK farming industry to be the best in the world and this funding is an important boost for farms looking to invest for the future.
"This new funding will support farmers to buy new technology which will increase their productivity and help them to become more competitive and profitable."
With the first phase of the new Countryside Productivity scheme now open, farmers, foresters and land managers across the country are being invited to apply for the grants.
This includes small grants, worth up to £35,000 per business, and also large grants worth £35,000 - £1million per business.
This money can be used to invest in improved infrastructure and ground-breaking new technology, opening up opportunities for our farmers.
Available grants
The grants available to applicants depend on the size and sector of their business. The table below lists the available grants and who they are for. Grants may also be available under the Growth Programme or LEADER.
How much funding is available
A grant may cover up to 40% of the total eligible costs of the project. There are 2 types of grants: small grants and large grants.
Small grants
For small grants, funding of between £2,500 and £35,000 is available.
One small grant can be used to apply for a range of small grant items.
Large grants
For large grants, funding of between £35,000 and £1,000,000 is available.
Applicants can apply for a mix of large grant items in one application.
Applications can only be for large grant items or small grant items – not a mix of both.
Multiple applications
Applicants can apply for more than one Countryside Productivity grant, as long as they are for different projects. However, the selection process for the funding is competitive and the RPA may give priority to applicants who have not previously received Countryside Productivity funding.
When the funding can be claimed
Applicants should make sure they can afford to pay for the whole of their proposed project in the short term, as claims for the cost will be paid in arrears.
Paying for the rest of the project
The applicant must pay for the remaining 60% of eligible costs, and all ineligible costs, with private money, such as savings or a bank loan.
An applicant won’t get a grant if the project depends on using other public money like Big Lottery, local authority, levy board funds, or other Government or European grants, such as Countryside Stewardship.
If private money is not used, the RPA can reclaim any grant already paid and cancel future grant payments.
If equipment for the project is obtained using hire purchase, the interest cannot be reclaimed and the applicant must fully own the equipment before any grant money is paid towards it. This means that the applicant will need to have paid all instalments for the equipment and show that title to the equipment has passed to them before being paid any grant money towards it.
Costs that are not eligible for funding
The costs which are not eligible depend on which grant is applied for. However, the following costs are not eligible for all grants:
- standard agricultural equipment and inputs like animals and crops
- the cost of agricultural production rights and payment entitlements
- the cost of obtaining any obligatory consents, like planning permission
- anything that’s a standard industry obligation, like requirements of the Basic Payment Scheme
- any costs that are incurred before the date of the offer letter
- financial charges, such as interest, fines and maintenance costs
- reclaimable VAT
- any items for which the applicant already has or intends to receive EU or national funding
- projects which are required by law or to meet a legal requirement
- like for like replacements
- the applicant’s own labour
- costs of relocating an existing business
- costs connected with a leasing contract, such as a lessor’s margin, interest refinancing costs, overheads and insurance charges
- salaries and running costs (except for grants under the European Innovation Partnership)
- licence fees, subscriptions and service charges
- standard computer and mobile equipment
