Rural Development Programme for England 2014-2020 Confirmed - - PowerPoint PPT Presentation

Rural Development Programme for England 2014-2020

Confirmed accurate as at January 2018

Fay Collington ELM Policy, Defra

Common Agricultural Policy

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Rural Development Programmes can support:

• the environment;
• farming, food and forestry sectors; and
• economic and social development in

rural areas Pillar 1 Pillar 2

Pillar 1

Provides direct payments to farmers and market control measures

Pillar 2

Promotes rural development through programmes in each Member State

• r region

7 year programme cycle: From 2014 to 2020 [2023]

CAP

What is RDPE trying to achieve?

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The rural economy is hugely important to this country. We want to unleash the economic potential England’s rural areas have to offer, both for the prosperity of those living in rural areas and for the benefit of the UK economy overall. Get the most out of each £ we spend on the environment to benefit nature and improve water quality. Have the best food and farming industry in the world: exciting, dynamic and at the forefront of technology and innovation. A programme focused much more on growing the rural economy and job creation and that targets tax payers money where it makes the greatest difference. We are aiming to protect the natural environment on 2.5m ha of our farmed land, create around 6,750 jobs and fund planting of 14,000 ha of trees.

Targets, outcomes and monitoring 2014-2020

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3,625 agricultural holdings and businesses supported under Countryside Productivity 2,521,000 ha managed under agri-environment Countryside Stewardship 6,700 participants in training under the Countryside Productivity scheme 210 operations supported to improve basic services and infrastructure in rural areas under the Growth programme Population of 8,190,000 covered by LEADER

Main (non-financial) targets for RDPE set out in the performance framework are:

835 investments in energy savings and efficiency or renewable energy production under Countryside Productivity and Growth programme

The RDP consists of four schemes with complementary objectives…

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Countryside Stewardship 87% Improving the environment, particularly biodiversity, water quality and soils Countryside Productivity 4% Supporting farm and forestry productivity, new enterprises and technology Growth Programme 5% Rural business development broadband, renewable energy and rural tourism. LEADER 4% Funding to support jobs and growth in rural areas. Total Socio-economic budget 13%

Countryside Stewardship

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• The Countryside Stewardship scheme is
• pen for farmers, foresters and other land

managers who voluntarily manage their land in ways which benefit the environment to meet local priorities.

• The Countryside Stewardship offer consists of

4 elements:

• Higher Tier,
• Mid Tier,
• Capital Grants and
• Facilitation Fund
• New Scheme for 2018 opened 15th January

Further details- www.gov.uk/guidance/countryside- stewardship/how-it-works

Rural Development Programme for England (RDPE)

3 Schemes Available:

• Growth Programme
• Countryside Productivity

large grant scheme

• LEADER

Growth Programme Scheme

• Defra launched national RDPE Growth calls in January 2017 for:
• Business Development
• Tourism Infrastructure
• Food Processing

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https://www.gov.uk/government/publications /rdpe-growth-programme RPA helpdesk 03000 200301

Business Development

What are the grants for? To help small rural businesses grow and create more jobs. Grant funding can help pay for:

• constructing or improving buildings
• buying new equipment and machinery

How much money can you apply for?

• Grants can cover up to 40% of the eligible costs of a project.
• Grants are for a minimum of £35,000
• State aid rules limit funding to €200,000, around £170,000

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Business Development – National Priorities

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Your project is more likely to get a grant if it achieves at least 2 of these;

Create jobs Creates new, higher-skilled or higher-paid jobs. Creates at least 1 FTE job for every £30,000 of grant funding Grow your business Increases the turnover and profitability of a business Improve productivity through innovation Introduces new techniques, equipment or processes to a business to make it more productive Open new product markets Helps your business sell goods or services to new customers or markets. Export Helps your business access export markets

Business Development – Local Priorities

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Priority will be given to projects that:

• create skilled jobs in the applicant business
• increase productivity in the applicant business
• allow farming businesses to diversify into non-agricultural activities
• create new or expand existing micro and small businesses in rural areas leading to

growth of the applicant business in the following priority sectors:

• manufacturing and engineering
• pharmaceuticals
• food and drink
• Knowledge Intensive Business Services
• creative

Tourism Infrastructure

What are the grants for?

• The aim is to support projects that will encourage more tourists to

come, to stay longer and to spend more money in rural areas.

• The grants will help fund the costs of capital expenditure on

tourism infrastructure. How much money can you apply for?

• Min £35,000 – Max €200,000 (approx. £170,000) for commercial

projects, up to 40% grant rate

• No maximum for non-commercial projects

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Tourism - National Priorities

Your project is more likely to get a grant if it achieves at least 2 of these; Create jobs Create at least 1 FTE job for every £30,000 of grant

• funding. Creates skilled jobs

Extend the tourism season Attracts tourists outside the usual period of May to October Develop tourist attractions and infrastructure Creates or develops tourist attractions and infrastructure to increase the range of attractions available locally, encourage tourists to stay longer and increase their spend. Wider benefits Provides benefits to the wider tourism economy in the rural area.

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Tourism Infrastructure – Local Priorities

Priority will be given to projects that:

• develop new or improve existing tourist attractions that encourage more visitors to stay for longer

and spend more

• develop outdoor and adventure-based recreational activities for visitors in open country and/or

forests particularly cycling, mountain biking, walking, climbing, water sports and marine nature tourism

• develop new or improve existing tourism attractions, experiences, trails and infrastructure that

improve access to and understanding of:

• - the coastline
• - protected landscapes - especially if making links to neighbouring protected landscapes,

including the Land of Oak and Iron Initiative

• - Dark Skies - developments must comply with the British Astronomical Society’s Lighting

Guidelines

• - North Eastern heritage including the industrial, Roman and religious history
• - local distinctiveness - including music, crafts, local culture and local food and drink

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Tourism Infrastructure - Continued

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Priority will be given to projects that:

• attract more visitors during the months of October to March
• increase the variety and number of indoor activities, especially spa or recreational and

exercise facilities aimed at tourists

• improve the visitor experience for those with access needs and/or which add to the quality
• f reception facilities especially at appropriate locations on the coast, exceeding statutory

requirements

• Improve the accommodation offer in the rural area and in particular within Northumberland

National Park, AONBs and other protected landscapes

Tourism Business and Accommodation Development – Local Priorities

Priority will be given to projects that invest in accommodation to:

• encourage more visitors to stay for dark skies-related visits, particularly overnight visitors and

those from other areas

• address gaps in accommodation along recognised cycling and walking routes
• improve the quality as defined by Visit England 4 star accreditation or other nationally

recognised ratings. This includes boutique hotels and inns, glamping and camping accommodation, bunkhouses, lodges and touring caravan sites These grants will not support projects that:

• refurbish, repair or maintain existing accommodation where the current standard of facilities

and / or accreditation rating is retained

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Food Processing

Who can apply?

• Food and drink businesses that process agricultural and horticultural products.

What are the grants for?

• To help businesses grow and create new jobs.
• Grant funding can help pay for (full list of eligible costs will be available in the handbook):
• constructing or improving buildings
• buying new equipment and machinery

How much money can you apply for?

• Min £35,000; Max - £250,000

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Food Processing - National priorities

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Your project is more likely to get a grant if it achieves at least 2 of these;

Create jobs Create at least 1 FTE job for every £30,000 of grant funding. Grow your business Increases the turnover and profitability of a business Benefit the supply chain Provides direct benefits to the farmers and growers who supply the raw materials, particularly local farmers and growers. Access new markets Helps you sell more products locally, nationally and through exports. Improve productivity through innovation Introduces new techniques, equipment or processes to a business to make it more productive Create joint ventures and partnerships Creates new and useful links between businesses – for example between growers and processors.

Food Processing – Local Priorities

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Priority will be given to projects that:

• process locally sourced produce
• process high value bioactive and functional foods
• process speciality foods especially those produced from local sources within our areas of protected

landscapes and which contribute to the unique heritage offer of North East local food and drink

• invest in equipment, technologies or processes to develop new or higher quality products
• enable the applicant business to start exporting products, or increase the volume and/or value of

products exported

• improve the resilience and/or sustainability of the applicant business, for example, through new or

more effective processing technologies including equipment or processes to reduce waste or

• btain added value from waste (waste valorisation) as part of a larger project
• improve the digitalisation of the applicant business, for example through ICT adoption or wider use
• f ICT in the processing and business or logistics operations as part of a larger project

Timescales

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Expression of Interest (EoI) Open until 31 May 2018 RD response to EOI (including local ESIF Sub-Committee input) 30 working days (6 weeks) Full Application preparation 2-3 months Decision on Full Application 60 working days (12 weeks) The final date by which all projects must be finished, paid for and complete grant claims submitted 31 December 2020

What we look for at Full Application stage?

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Strategic Fit How well the project meets the national as well as the local priorities for funding. How the project will impact on the environment. That the project does not disadvantage anybody in terms of ethnicity, disability, age or gender. Value for Money How the project Costs represent value for money. The amount of grant required to deliver the outcomes and outputs (E.g. Cost per Job). What difference grant funding will make compared to what would happen without grant funding. Need and Demand Why grant funding is required for the project. A clearly identified market need for the project. The impact the project has on other businesses. Financial Viability How the project impacts on your existing business operations How you will fund the project until the grant can be claimed. How the business will benefit from the project financially. Deliverability and sustainability Whether the project will be delivered within budget and on time. That the right skills and resources are in place to deliver the project successfully. How the project outputs and other benefits will be monitored and recorded. That risks to project delivery have been identified and how they will be mitigated.

Ineligible costs (see also list in handbook)

Some examples:

• Costs of refurbishment and simple like-for-like replacement of buildings,

machinery or equipment

• Leasing contract costs – like lessor’s margin, interest refinancing costs,
• verheads and insurance charges
• Costs of computers, software or printers used in general running the business

(e.g. accounts or processing orders)

• Salaries or running costs
• Developing or setting up agricultural businesses
• Costs of marketing and promotion
• Contributions in kind

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Projects that will not be supported :

• Projects which displace existing activity in the rural area
• Where the project is to relocate a business with no net increase in economic

activity or jobs;

• Where there is no demonstrable plan to increase productivity as a result of

the investment

• Where the project only creates a small number of low productivity jobs and

such jobs are not needed in the area

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Countryside Productivity

• Water Resource Management
• Improving Forestry Productivity
• Improving Farm Productivity
• Adding Value to Agri-food

All Handbooks, guidance and application forms can be found at: https://www.gov.uk/guidance/countryside-productivity-scheme RPA helpdesk 03000 200301

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Water Resource Management

Purpose of grant is to improve farm productivity through;

• more efficient use of water for irrigation
• securing water supplies for crop irrigation by construction of on-farm reservoirs
• Who’s eligible to apply – any size arable or horticultural business
• Minimum grant is £35k, maximum grant – none
• Grant rate – max 40%
• Eligible Items – a list can be found in the Handbook

Why are we funding Water Resource Management projects?

• To improve productivity – enable the farm to introduce more efficient processes, techniques or equipment
• To enhance resilience – make the farm more resilient to climate change
• To improve efficiency – enable the farm to reduce water usage within the business
• To introduce innovation – help the farm adopt innovative techniques
• To grow the business – enable the farm to increase turnover and/or profitability or create jobs through

increased range or higher value crops

• To encourage collaboration and partnerships – encourage the farm to create new links between

businesses through sharing water

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Improving Forestry Productivity

Purpose of grant is to improve forestry productivity through

• felling
• extraction
• adding value by primary processing of timber products

Who’s eligible to apply?

• private forest holders managing at least 10 ha of forest
• Micro, small or medium sized forestry contractors
• Minimum grant is £35k, maximum grant – none
• Grant rate – max 40%
• Eligible Items – a list can be found in the handbook

Why are we funding Improving Forestry Productivity projects?

• To improve productivity
• To grow the business
• To encourage collaboration and partnerships
• To create higher value products

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Improving Farm Productivity

Purpose of grant: to improve farm productivity through

• the use of robotic equipment to aid crop or livestock production
• increasing the use of renewable energy produced on farm by improving energy

storage and distribution

• the use of LED wavelength controlled lighting to aid crop production
• more efficient use of livestock slurries and manures, and digestate
• Who’s eligible to apply – any size farming business (livestock, dairy, arable and horticultural

sectors)

• Minimum grant is £35k, maximum grant – none
• Grant rate – max 40%
• Eligible Items – a list can be found in the handbook

Why are we funding Improving Farm Productivity projects?

• To improve productivity

To enhance resilience

• To improve efficiency

To introduce innovation

• To grow the business

To encourage collaboration and partnerships

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Adding Value to Agri - Food

Purpose of grant: to improve the processing of primary agricultural products to

• Shorten supply chains
• Deliver benefits to primary producers
• Who’s eligible to apply – any size farming business (livestock, dairy, arable and

horticultural sectors) and any size food and drink business in rural or urban areas

• Minimum grant is £35k, maximum grant – none
• Grant funding can pay for Equipment, machinery and Constructing or improving buildings

associated with all aspects of processing

Why are we funding Adding Value to Agri-food projects?

• To benefit the supply chain –provide direct benefits to the farmers and growers who grow the Annex 1

materials

• To create higher value products –improve the processing of Annex I products
• To improve productivity –introduce more efficient processes, techniques or equipment
• To introduce innovation – to help the business adopt innovative technologies
• To grow the business
• To encourage collaboration and partnerships

LEADER

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• LEADER is a French acronym which roughly translates as “Liaison Among Actors in

Rural Economic Development”.

• More of an approach than a scheme.
• Bottom up, community led approach to funding.
• LEADER Local Action Groups (LAGs) made up of public, private and civil society.
• Delegated powers to bring forward and fund local projects in line with Local

Development Strategy.

• 79 LEADER groups have been approved, covering approximately 85% of the rural

population in England.

• 70% of projects directly support the rural economy, with the remaining 30% all needing

to make a contribution.

LEADER

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• LEADER has 6 priority areas:

– Farm productivity – Micro and small enterprises and farm diversification – Rural tourism – Rural services – Culture and heritage – Forestry For more information: www.gov.uk/rural- development-programme-for-england- leader-funding

The 25 Year Environment Plan

The Plan is launched

The 25 Year Environment Plan

“The environment is something personal to each of us, but it is also something which collectively we hold in trust for the next

• generation. And we have a responsibility to

protect and enhance it” Theresa May, 11 January 2018

• The National Ecosystem

Assessment (2011)

• The Natural Environment White

Paper (2011)

• The Natural Capital Committee’s

third State of Natural Capital report (2015)

• “…we pledge to be the first

generation to leave the environment in a better state than we inherited it. That is why we shall produce a comprehensive 25 Year Environment Plan that will chart how we will improve our environment” (2017)

• The 25 Year Environment Plan

(2018)

The journey here

The 25 Year Environment Plan

Putting the plan into practice

The 25 Year Environment Plan

• Consulting on setting up a new independent body to hold government to account and a new set of

environmental principles to underpin policy-making.

• Developing a set of metrics to assess progress towards our 25-year goals.
• Refreshing the 25 Year Environment Plan regularly to ensure that collectively we are focusing on the right

priorities, using the latest evidence, and delivering better value for money.

• Strengthening leadership and delivery through better local planning, more effective partnerships and learning

from our four pioneer projects.

• Establishing a new green business council and exploring the potential for a natural environment impact fund.
• Work closely with a large range of stakeholders over the coming year to identify their contribution to the goals

set out in this Plan.

Leaving the European Union and the Common Agricultural Policy: a new farming and environmental policy framework

Summary

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The Common Agricultural Policy is a large and clumsy policy tool. At €40bn per year it accounts for 40% of the EU’s budget and is costly, complex and burdensome to administer. Government has committed funding to 2022, and ministers are focused on meeting manifesto commitments on food and farming, the environment and animal welfare. Leaving the European Union means leaving the Common Agricultural Policy. We now have a historic opportunity to take back control of our policies on agriculture and the environment. We have the opportunity to revitalise the farming industry, enhance growth in the sector and take the opportunity to use public money to reward environmentally-responsible land use. We are developing policy options for Ministers and have identified several areas on which we will build future policy.

Manifesto Commitments

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• A commitment to maintain current levels of

funding for farmers until the end of the parliament.

• A commitment for a new agri-environment

system.

• A commitment to improve flood

management; improve animal welfare; and a recommitment to the 25 year environment plan.

• A commitment to grow more, sell more and

export more great British food.

Core Elements of a Farming and Environmental Policy

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Productivity and Growth Risk Management and Resilience Environmental Outcomes Animal and Plant Health and Welfare RuralGrowth

Key Milestones

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Consultation Publication Consultation Period Agriculture Bill Introduced March 2019: UK leaves the EU

Environmental Land Management – Future Scheme

Leaving the EU presents a major opportunity for UK agriculture and we will be able to design new policies which specifically benefit British agriculture, countryside and the environment and provide better value for money to the British taxpayer. We have no intention of weakening our current environmental

• protections. We want to

ensure that we are the first generation to leave the environment in a better state than we inherited it. We want to work with farmers, food producers and environmental experts across Britain to devise a new environmental land management system that uses public money to reward environmentally- responsible land use. Through the new scheme it will be possible to support farmers and land managers to minimise environmental damage and see themselves as providers of environmental services and enhancements. We will be trialling new schemes to assess what works.

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Consultation

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The scope and timing of a consultation is still to be decided. Our current intention is to set out the direction of travel and some detail on the policy options. Preparing for this will require stakeholder engagement. We have held meetings with many of the major stakeholders and collected views from over 150 organisations. As well as groups, we are meeting with local groups of farmers and developing our understanding of the views of both farmers and citizens through robust evidence.. The consultation and stakeholder engagement will prepare for the introduction of the Agriculture Bill. The Environment Secretary’s intention is to publish a consultation document in early 2018.

Agriculture Bill

The Queen’s Speech confirmed there will be an Agriculture Bill. The purpose of the Bill is to:

• Provide stability to farmers as we leave the EU.
• Support our farmers to compete domestically and on the global market,

allowing us to grow more, sell more and export more great British food.

The main elements of the Bill are:

• Measures to ensure that after we leave the EU, and therefore the Common

Agricultural Policy, we have an effective system in place to support UK farmers and protect our natural environment.

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Delivery and Transition

Business as usual (now until March 2019)

• As we prepare to exit the EU we will

continue to use our current delivery systems to deliver the CAP.

• Pillar I will continue to be

administered by the RPA and Environment Agency.

• Pillar II by the RPA, Natural England

and Forestry Commission.

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• Orderly transition is a key priority
• EU (Withdrawal) Bill will roll forward existing EU

legislation

• Funding guarantee provided to end of Parliament
• Need to ensure farmers and land managers understand

what they have to do to continue to receive funding

• Need to provide clarity over inspection and enforcement

arrangements

• Need to ensure delivery agencies and systems are

prepared

• Potential to simplify existing processes within the

constraints of the EU (Withdrawal) Bill

Day 1 of Exit (March 2019 until first use of powers under the Agriculture Bill)

Any Questions?

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Contact Fay Collington Fay.Collington@defra.gsi.gov.uk