Grants for Farmers

The system that gives grants to farmers isn’t easy to follow. An enquiry to DEFRA (the Department for Environment, Food and Rural Affairs) will often lead to other bodies. Among these are Regional Development Agencies (RDAs); the Forestry Commission; and various other agencies that cover the regions of England, Northern Ireland, Scotland and Wales.

However, it’s possible to give an overview of agricultural grants. This can at least ensure that farmers don’t lose out on the common types of funding.

Single Payment Scheme

The European Union’s main grant programme for farmers is the Single Payment Scheme (SPS). There is no relation between the SPS and farm production. Farmers can build their businesses on the demands of the market rather than demands from government.

The agencies that run the SPS, and the methods of administration, differ in each UK region. In England, the conditions for receiving SPS payments are as follows: an eligible party must be a farmer; must have eligible land; and must have entitlements. The definition of eligible land is permanent pasture and arable fields.

Entitlements refer back to 2005. In this year, the government issued entitlements to most farmers. Farmers can get more entitlements by buying or leasing them from other farmers.

To claim SPS payments, a farmer must have a hectare of eligible land for each entitlement. The payment is a flat rate plus an amount based on any subsidies a farmer received before 2005. In England, payment for each entitlement will become just a flat rate by 2012.

English farmers must make their SPS payment applications via the Rural Payments Agency. The deadline is 15 May each year. This summary of SPS payments does not cover Northern Ireland, Scotland and Wales. The regional SPS agencies have further details.

Forestry Commission Grants

If a farmer has woodland, there are grants for forest development and management. Funding comes from the EU. Each region runs the scheme to meet local needs. However, a useful first point of contact for grants is the UK Forestry Commission.

Area Payment for Nuts Scheme (APNS)

Farmers can apply to their regional agency for money to help fund nut growing. The nuts eligible under APNS are almonds, hazelnuts, pistachios and walnuts. The grant also applies to locust beans.

Aid for Energy

Farmers can grow crops such as willow and rapeseed for energy production. Energy companies may burn the crops to create electricity; or they may process the crops into fuel such as biodiesel. Farmers receive a set amount per hectare of energy crop.

Protein Crops

For the purpose of a grant, protein crops are field beans, peas and sweet lupins. Farmers growing these crops receive a set premium per hectare.

Restrictions

The APNS, Aid for Energy and Protein Crop grant schemes have restrictions. For example, if the total number of energy crop hectares exceeds two million across the UK, the amount of the payments drops.

Some schemes also have a limited life. It’s therefore wise to check the current and future position on grant payments within a region before changing a farm’s produce.