Farm Business Development Scheme

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Farm Business Development Scheme

• Christine McLaren Area Project Manager
• Iain Carmichael Area Project Manager

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FBDS Objectives

• Diversification
• Help create new or expand existing diversified
  businesses
• Co-operation and Collaboration
• Training and Marketing
• Investment in Agricultural Holdings
• Assist with the restructuring or re-orientation
  of agricultural production

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Eligible Business

• Located in Scotland, outwith Highlands Islands
• Actively engaged in agriculture for 2 years prior
  to application
• Provide 2 years financial accounts demonstrating
  agricultural activity

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Grant Assistance

• FBDS is discretionary and competitive scheme with
  a variable grant rate

• Max. grant ceiling for individual business
  30,000
• Max. grant ceiling for collaborative projects
  35,000 per business (min. 3)

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Diversification
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Example Projects

• Rural Services
• contracting, kennels, catering, shop, plant hire
• Tourist Accommodation
• barn conversion, new build, chalet, wigwam, BB
• Leisure, Recreation and Sporting Facilities
• golf, livery, country sports, sailing, maze
• Alternative Agriculture
• soft fruit, deer, honey, worms

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Example Projects

• Residential Letting
• conversion of redundant buildings
• Tourist Facilities
• farm park, visitor centre, adventure playgrounds
• Retailing of Processed Agricultural Product
• farm shop, milk deliveries, bakery, butchery
  (game)
• Processing of Forestry Products
• fencing materials, wood chipping, firewood

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Eligible Costs

• Capital costs building works, services
• Fixed equipment machinery
• Mobile machinery IT if integral to project
• Access roads, landscaping
• Livestock and nursery stock (alternative
  agriculture)
• Professional Fees architects, surveyors
• Marketing leaflets, advertising, trade shows
• Training

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Application Process

• Application form
• Consultancy fees for completion NOT eligible
• Must also include 2 quotes for all eligible works
  and 2 years agricultural business accounts
• Applications can be made prior to or after
  planning permission/building warrant
• Application deadlines approx. quarterly

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Application Process

• Applications assessed by Project Assessment
  Committee 6-8 weeks after deadline
• Regional Committee
• Scottish Enterprise, Visit Scotland, Council,
  Forestry Commission, SNH, SEERAD
• NFUS, SRPBA as observers
• Make recommendation to Scottish Ministers on
  whether the project should be supported and if
  so, at what grant rate
• Project cannot start until approval accepted

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PAC Considerations

• Profitability, Return on Capital
• Additionality of grant
• Evidence of demand
• Displacement
• Market focus
• Marketing plan
• Consistency with local/regional strategies

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Project Management

• 2 year deadline for project completion
• Expenditure restricted within measures
• Variations/extensions only granted in exceptional
  circumstances
• Project monitored for 5 years after completion (7
  years for residential letting)
• annual strategic monitoring

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FBDS Diversification Deadlines

• There are 2 date remaining
• 16 May 2006
• 15 August 2006

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Investment in Agricultural Holdings
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Investment in Holdings

• Introduced 1 June 2005
• Assist with restructuring or reorientation of
  agricultural production
• changes to scale or nature of production
• increasing/decreasing production, new enterprise,
  improving quality
• significant change to business practice
• labour/financial efficiency, welfare,
  environment, health safety

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Eligible Items

• Provision or upgrading of
• livestock accommodation
• storage sheds
• storage disposal of agricultural waste
• electricity water supplies
• cattle handling facilities, fanks, dippers
• hard standings for livestock
• IT to improve business effectiveness
• Fixed equipment
• Training linked to FBDS project

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Application Process

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Business Plan (BP)

• The aim of the Business Plan is to have an
  informed and objective statement of the
  agricultural business
• It should provide a comprehensive summary of the
  state of the business and examine and identify
  what is required for the economic continuance of
  the business.

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Business Plan (BP)

• The Business Plan should include
• Financial statement
• Details of current enterprises/labour etc.
• Assessment of alternative means of enhancing
  current viability.
• Justification for proposals and do they meet the
  restructuring criteria.

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Business Plan Process

• Business Plan must be approved before application
  can be considered
• If cost of work included gt10k, business plan
  must be prepared by a consultant (50 grant, max
  400)
• If cost of work included lt10k, fixed grant of
  100 to applicants who prepare their own business
  plan
• After approval of the business plan, application
  can be made for individual projects identified in
  the plan

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Application Process

• Information to be submitted with application
  form
• 2 quotes for all works to be carried out by
  contractor
• estimates of other materials/labour costs
• details of works to be carried out under standard
  costs
• 2 years agricultural business accounts
• Application deadlines approx. quarterly

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Processing IiH Applications

• Agricultural staff will summarise the Business
  Plans.
• SEERAD Surveyors will assess and summarise the
  Investment in Holding (IiH) applications.

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Project Assessment Committee

• Applications assessed by Project Assessment
  Committee 6-8 weeks after deadline
• One committee
• SEERAD HQ and Area Staff
• Industry organisations invited as observers
• Make recommendation to Scottish Ministers on
  whether the project should be supported and if
  so, at what grant rate
• Project cannot start until approval accepted

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Project Management

• 2 year deadline for project completion
• Variations/extensions only granted in exceptional
  circumstances
• Project monitored for 5 years after completion

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Investment in Holdings application deadlines

• 30 March 2006
• 17 May 2006
• 11 September2006
• Please note that a Business Plan must be
  submitted at least 6 weeks prior to an IiH
  application being submitted.

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Farm Business Development Scheme

• Iain Carmichael Area Project Manager
• Christine McLaren Area Project Manager