NEW ENTRANTS
PILLAR 2 (Rural Development)
Scotland Rural Development Programme (SRDP)
Current Position
1.
SG Committed to encouraging new entrants to farming. First administration to
introduce dedicated new entrants support measure. This provides the maximum
support allowable under EU rules (up to €40,000 interest rate relief plus €30,000
establishment grant.
2.
Option is one of several in the “New Entrants and Young Farmers” support
package within Rural Priorities, often with a 10% enhancement of grant rates for
young farmers: for example, 60% grants for business restructuring, infrastructure or
installation of renewable energy capacity.
3.
New and young farmers are also eligible for other support measures, on the
same basis as other farmers, including 75% training grants, 80% farm business
advice grants as well as environmental and diversification grants.
4.
Since the SRDP was launched in 2008, we have given support under the
Interest Rate Relief option to 65 New Entrants to farming. This will amount to approx
£1.9M over the period of the programme. Recently another 36 new entrants have
had their applications approved. Final values for these New entrants will not be
known until contract are issued but likely to be in the region of a further £1M.
Draft Rural Development Regulation
5.
Main route for support for New Entrants and Small Farmers in draft RDR is
Article 20 - Farm and Business Development.
6.
Article 20 appears to cover a number of measures in the current RDR e.g.
setting up of young farmers, modernisation of farm holdings, diversification into nonagricultural activities and support for the creation and development of microenterprises.
7.
Support under the measure includes business start-up aid under Article 20(a),
investments in non-agricultural activities under Article 20(b) and for farmers
participating in a proposed new “small farmers scheme” under Article 20(c).
8.
To qualify as a young farmer you must be under 40 years of age though this
is still being considered/debated. (See issues for consideration)
9.
There are several common provisions for support for business start-up aid
including that the maximum amount will be €70k over a maximum 5 year period.
Support is conditional on the production of a business plan.
10.
Support through non-agricultural activities in rural areas is to farmers or
members of the farm household diversifying into non-agricultural activities and also
to non-agricultural micro and small enterprises in rural areas.
11.
The “small farmers scheme” is new to RDR and being established under
the Direct Payment Regulations with support being made available to farmers who
commit to permanently transfer their entire holding and payment entitlements to
another farmer. Farmers must already have been in the small farmers scheme for at
least one year before qualifying. The amount of support will be equal to 120% of the
annual payment under the small farmers scheme.
12.
Under Article 20 the definition of a ‘farm household’ cannot include ‘farm
workers’.
Issues for consideration
13.
We are working with DEFRA and other UK administrations to allow start-up
grants to be provided to all New Entrants regardless of age, as we believe it is unfair
to restrict those under 40.
14.
Under Article 8 of the RDR there is the opportunity to have thematic subprogrammes aimed at addressing specific needs. An extra 10% intervention rate can
be awarded under this sub-programme but only to those areas listed by the EC
(young farmers, short supply chains and small farms). We are exploring the potential
here but are sceptical it would deliver anything extra beyond what we could already
do in main programme.