Farmers can now access grants up to £1 million through a £60 million initiative launched today by Defra secretary Caroline Spelman. The grant fund aims to stimulate growth in rural areas, following accusations that the government has neglected rural concerns and that austerity cuts have had more severe effects in rural communities.

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The Rural Economy Grant scheme, according to the environment minister, aims to increase both the competitiveness and profitability of rural businesses. Succussful applicants to the grant scheme will receive up to 40 per cent of the cost of projects in five business areas (farm competiveness, agri-food, tourism, forestry, and micro enterprise support.)

 
Upon unveiling the project, Ms Spelman said, “Businesses in rural England can play a significant part in helping to rebuild the nation’s finances. Our £60 million investment will give farmers and rural entrepreneurs life-changing opportunities to transform their business prospects for the long term. It’s part of a £165 million package of initiatives to unlock the economic potential of our rural areas.

The Defra secretary admitted that rural areas “Have been overlooked for too long,” but said the new grant scheme would enable rural entrepreneurs to help themselves. She said the new scheme would prioritise small businesses in awarding grants of between £25,000 and £1 million.

As well as helping farmers find new export markets through part-funding processing and packing equipment, Defra claims the scheme will also provide farmers with the opportunity to improve animal health and welfare and improve soil nutrients and water management. There are also opportunities available for capitalising on the growing tourism industry.

Farming groups have welcomed the news. NFU Vice President Adam Quinney said that many farmers have long had innovative plans for diversification and improving the resilience of their business, but in the past a lack of finance has held them back. Mr Quinney said, “The scheme is good news for the farming industry. Defra wants the capital grants to support projects that will be a ‘game-changer’ in transforming farm businesses and we share this ambition of wanting the fund to bring about real change.

“It must be used to facilitate investment in projects that will bring lasting benefits, and prepare businesses for the future and we will need to see the banks showing a similar level of confidence in the selected projects, so that farmers have access to the match funds required on the right terms.”

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