Adding Value Grant – for Farmers and Growers
Details of the Adding Value Grant, open june 9th 2022 – 21 july 2022, have been released by the Rural Payments Agency (RPA).
Applicants can request grants for buildings, machinery or equipment that will allow them to add value to eligible agricultural products after they are harvested or reared. Eligible items include, arable and horticultural crops, livestock products and non-food crops.
The grant can cover up to 40% of the eligible costs of a project, and the minimum grant you can apply for is £25,000 (40% of £62,500). The maximum grant is for £300,000 per applicant business.
Projects will be prioritized where they:
- increase, improve or introduce new processing capabilities
- grow your business – to improve business resilience
- process products for the first time
- shorten supply chains
- encourage collaboration and partnerships
- improve environmental sustainability
Projects providing wider benefits will also be of interest. Those benefitting or collaborating with other businesses benefitting the environment are noted by the RPA. These could include the use of renewable energy or reduction in use of harmful emissions, or pollutants.
Eligible capital items:
- 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
Projects could incorporate processing agricultural products, adding value to agricultural products or for retailing products. Examples include:
- Adding value to products prior to sale by washing, sorting or packing
- Processing a product to change it into a new product, such as potatoes to crisps, or milk to cheese
- Introducing facilities for the sale of added value products, such as buildings for retail or milk vending machines.
Unlike some other funding streams, second-hand items will be eligible. The associated supplier must include a statement that the item:
- has not previously been purchased with public funding
- is fit for purpose
- does not cost more than an equivalent new item
- is expected to last for at least 5 years
There are an array of costs that cannot be covered by the grant. Certain agricultural, general and financial costs will not be covered. These include, but are not limited to:
- Business running costs
- Repairs or maintenance of existing buildings, equipment or machinery
- Purchase of land or buildings
- Revenue costs
- Relocation costs
For a full list of ineligible costs visit the gov.uk website here.
Who can apply:
- Grower or other producer of agricultural products
- Business processing agricultural or horticultural products which is at least 50% owned by agricultural or horticultural producers
- Assets must be located in England
The land must be owned by the applicant business or have a tenancy agreement in place until 5 years after project completion
Who cannot apply:
- Forestry businesses
- Public limited companies
- Processing businesses that are not at least 50% owned by agricultural or horticultural producers
- Commercial contractors including agricultural contractors
- Public organisations, including Crown bodies and non-departmental public bodies
- Local authorities
- Members of Producer Organisations under the Fresh Fruit and Vegetables Aid Scheme if they have funding for the same project through their operational programme
If you have a project in mind you would like to apply for, experts at DR Company have the knowledge to guide you through your project from planning to completion, and assist you in every step of your grant application. Get in touch today on 01837 658643.