New Defra fund ’good news’ for farmers, say agricultural financial experts

Specialist agricultural accountants Moore Thompson have welcomed a new ’20 million fund to help farmers and rural businesses increase profits and reduce their impact on the environment.

The Farming and Forestry Improvement Scheme, unveiled by Defra, will give farmers, foresters and horticulturalists the chance to apply for grants of up to ’25,000 to invest in green projects and new machinery so their businesses can grow in an environmentally friendly way.

The scheme is part of Defra’s Rural Development Programme for England (RDPE) which aims to improve competitiveness in the agriculture and forestry sector, safeguard and enhance the rural environment, foster competitive and sustainable rural businesses and thriving rural communities.

To be eligible for a grant starting from ’2,500, applicants must show how the funding will help them improve nutrient management, energy efficiency, the health and welfare of farm animals or save, recycle or reuse rainwater.

Funds will be allocated between now and December 2013. Grants will cover a maximum of half of the total cost of projects in upland areas and at most 40% of the total cost of projects in non-upland areas.

Andrew Heskin, a partner in Moore Thompson’s Farming Sector team, said: ’Anything that helps out farmers financially has to be welcomed at a time of highly volatile produce prices and rising input costs.

’Every farmer recognises that increasing profits must now go hand-in-hand with improving our environment.

’This fund might just be the boost that they require to invest in green technology and machinery that can grow their businesses in an environmentally friendly way.

’However, the Government must realise that this is only a small step. Many farmers are fighting for their future and require more than just a grant of up to ’25,000.

’We need the Government to implement safeguards for CAP payments, and negotiate with supermarkets for fairer payments to their indirect suppliers such as farmers.’

Moore Thompson, which has offices in Spalding, Wisbech and Market Deeping, has a dedicated and highly trained farming sector team, whose experience and specialisation enables them to offer a personal service covering all aspects of taxation, accountancy and business advice to farmers and growers.