Defra grants helping farmers add value to open this month

Launching in June, the next theme of the Farming Investment Fund will be 'Adding Value', and it will be worth a total of £30 million
Launching in June, the next theme of the Farming Investment Fund will be 'Adding Value', and it will be worth a total of £30 million

Grants focused on supporting farmers to process, diversify and add-value to their products will open for applications this month.

Launching in June, and closing six weeks later, the next theme of the Farming Investment Fund will be 'Adding Value', and it will be worth a total of £30 million, Defra explained.

It will offer grants of between £25,000 and £300,000 to farmers and growers for up to 40 percent of eligible project costs.

Grants awarded will pay for capital items to enable farmers to add value to eligible agricultural products, after they’ve been harvested or reared.

Details on eligible capital items is contained within Defra's new manual. However, the exact date of the grant opening is yet to be announced.

"You won’t be able to apply for Adding Value grants until it launches in June, but this manual should help you consider your options and to make a choice in a timely way," Defra said.

"You can apply for a grant if you are a grower or other producer of agricultural products, or a business processing agricultural or horticultural products which is at least 50% owned by agricultural or horticultural producers.

"If your project scores highly enough, we will invite you to submit a full application."

In November, the Farming Investment Fund was launched. It included the Farming Equipment and Technology Fund and the Water Management theme of the Farming Transformation Fund.

An Improving Farm Productivity theme was added in January 2022, which was worth £25 million in total.

What's included in the 'Adding Value' round?

This £30 million fund will offer grants focused on supporting farmers and growers to process, diversify and add-value to their products.

They include:

• Equipment for preparing or processing edible agricultural products for added value sales

• Equipment for ‘second stage’ processing of grain - for example, colour sorting, blending

• Equipment for processing non-edible agricultural products into new products (for example, flax, hemp, wool, hides, and skins)

• Equipment for retailing eligible agricultural products (for example, vending machines or display facilities)

• Premises for the preparation or processing of added value agricultural products, including associated integral storage areas.