To provide an outline of the key features and benefits of these Grant Schemes and the Grant Application procedures.

A list of grant aided costs is available by clicking on Grant Aided Costs.


2. Main UK Grant Schemes

The following is a list of the main Grant Schemes operating in the UK.

2.1 England Rural Development Programme (ERDP)

The ERDP was introduced in October 2000 and will operate for six years. It comprises the introduction of four new, and extension of six old Grant Schemes aimed at developing rural enterprises and communities and protecting and improving the countryside. These ten Grant Schemes are listed below.

Processing and Marketing Grant - for primary food processing, storage and marketing

Farm Improvement Grant Scheme - for environmental protection and pollution and waste management

Farm Enterprise Grant - for various farming and related activities and energy crops

Training - Farm Adaptation - for training in the agricultural, horticultural and forestry sectors

Tir Gofal - for environmental protection
Mynydd - for farming in Less Favoured Areas

Organic Farming Scheme - for conversion to organic farming

Woodland Grant Scheme - for woodland planting

Farm Woodland Premium Scheme - for woodland maintenance

Hill Farm Allowance Scheme - for hill farming

2.3 Scottish Rural Development Plan

(This has not yet been introduced, but will be similar to the ERDP)


2.4 Northern Ireland Rural Development Plan

(Contact John Cook for the current position on grants in Northern Ireland)

2.5 Marketing Development Scheme

This scheme provides Grant Aid to the farming, food processing and related sectors for market research, marketing, establishment of Marketing Co-operatives and Groups, and recruitment, employment and training of key marketing staff.


2.6 Financial Instrument for Fisheries Guidance (FIFG)

This scheme provides grants on Capital and Non Capital costs in the fishing, fish farming and fish processing and marketing sectors.


2.7 Fresh Fruit and Vegetable Producer Organisations

This scheme provides Grant Aid to Fruit and Vegetable Producer Groups for marketing, quality improvement and environmental protection activities.


2.8 Enterprise Grant Scheme

This provides grant on capital costs in most processing and manufacturing sectors.


2.9 Regional Selective Assistance

This provides grant on capital costs in most processing and manufacturing sectors.

3. Features of Grant Schemes

3.1 Grant Scheme Objectives

Grant Schemes are operated by the UK Government and EU to achieve various policy objectives such as raising income and profits, creating jobs, improving skills, encouraging production, improving competitiveness, assisting restructuring, protecting the environment, encouraging research, etc. Each Grant Scheme has its own specified objectives.


3.2 Grant Scheme Budgets

Each Grant Scheme operates for a specified number of years and is allocated a specific annual budget. Applicants are required to submit Grant Application Forms and supporting Business Plans in which they are required to specify and make a case for the level of grant required within the maximum grant rates. Grant aid is awarded to those projects that most closely fulfil the scheme objectives. The value of all Grant Applications sometimes exceeds the available budget. The schemes are therefore competitive, and a Grant Award is not guaranteed.


3.3 Eligible Costs

Costs eligible for Grant Aid are specific to each scheme and can be categorised as follows:

Grants towards Capital Costs such as land and building purchases, access roads and site works, new buildings and building alterations, plant, machinery and equipment and related professional fees.

Grants towards Non Capital Costs such as staff recruitment, staff salaries, training, market research, marketing, consultancy, legal fees, etc.

Revenue Grants such as payments per hectare or per animal to farmers for undertaking specific activities.

Some Grant Schemes stipulate minimum and/or maximum total project costs.

The various activities that are submitted for Grant Aid in a Grant Application are collectively called the 'Project'


3.4 Eligible Areas

Some Grant Schemes, such as Regional Selective Assistance, are restricted to specific geographical areas.


3.5 Eligible Applicants

Virtually any type of business or organisation can apply for a grant of some kind - Sole Traders, Partnerships, Limited Companies, Co-operatives, Marketing Groups, Associations, Societies, Councils, Trusts, Museums, Colleges, Unions, Tourist Boards, etc.

Some Grant Schemes are restricted to particular business types or sectors, or are restricted or give priority to Small and Medium sized Enterprises (SME's). SME's are businesses with fewer than 250 employees and either an annual turnover of no more than EURO 40 million (around £25 million), or a Balance Sheet total of no more than EURO 27 million (around £17 million).


3.6 Eligibility Criteria

Each Grant Scheme has its own specific eligibility criteria. Potential applicants should ensure that their business and proposed project fulfil these before incurring the expense and time involved in preparing and submitting the Grant Application Forms and supporting Business Plan.

We advise businesses and organisations on their eligibility for Grant Schemes FREE OF CHARGE.

3.7 Grant Award Criteria

Grant Awards are made on the basis of how closely the proposed project matches the scheme's criteria and objectives as detailed in the Application Forms and supporting Business Plan. This is usually undertaken by the grant awarding body using a scoring system. The Application Forms and Business Plan therefore need to be carefully and thoroughly prepared, and clearly and professionally presented. This is important to show how the project fulfils the scheme objectives and why it needs Grant Aid. It will also assist the Grant Authority Scoring Panel and improve the chance of receiving a Grant Award.


3.8 Grant Rates

Each Grant Scheme has a maximum specified grant rate that is expressed as a percentage of eligible costs. Some, such as the Processing and Marketing Scheme, have a maximum Grant Award.

Percentage grant rates vary from 7.5% (Enterprise Grant) to 100% (Rural Enterprise Scheme). For certain Grant Schemes, such as the Processing and Marketing Grant, the rate of grant may be higher in specified geographical areas, such as Objective 1 Areas.

Where an economic return is the primary objective, grant rates of up to 55% may be available. Where economic return is not the primary objective (for example projects benefiting the community) a grant rate of 100% might be available in very exceptional circumstances.


3.9 Start of Work Rule

Applicants for Grant Aid must not start work on their project until they have received written confirmation of a Grant Award


3.10 Grant Applications

Grant Applications comprise Grant Application Forms and a supporting Business Plan. The contents of the latter are specified in the Grant Scheme Guidance Notes or Brochures.

Before a Grant Application can be prepared, the Applicant will need to determine the proposed project actions and costs. For capital projects, layout drawings, building tenders, equipment quotations and Planning Consent have to be obtained and included in the Grant Application. Plenty of time should therefore be allowed, prior to the planned start date , for preparing and appraising Grant Applications.

When a project is selected for Grant Aid the Applicant receives a letter confirming the value of the Grant Award and Conditions. If an Applicant later intends to change the timing, nature or cost of the project they must inform the grant awarding body before undertaking starting work.


3.11 Grant Claims

When expenditure has been incurred, a Grant Claim is submitted containing the original invoices and an Accountant's Certificate as well as various tables comparing planned and actual actions, capacities and costs.