Applications for both tiers of the upcoming 40% capital grant scheme will require a letter from a bank or lending institution to confirm that the applicant has access to funds to complete the project.

Making the announcement on Monday, DAERA Minister Michelle McIlveen said that although a letter was required for both tiers of the scheme, it was particularly important for tier two applications for projects that cost over £30,000.

“I am conscious that those applying to the scheme will be taking on additional investments at a time when many sectors have felt the impact of low prices and market volatility,” she said.

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Tier 1, for equipment and machinery costing between £5,000 and £30,000 (maximum grant of £12,000), and Tier 2, for construction projects or higher-value equipment costing over £30,000 (a maximum grant of £250,000), are both due to open for applications before the end of this month.

According to the Department, obtaining indication of support letters for Tier 1 projects should be straightforward and can be agreed over the counter at local banks or lending institutions. For Tier 2 projects, banks have said that this can take up to two weeks and will require assessment of the business plan being submitted along with the application.

Minister McIlveen reiterated that the business plan for Tier 2 projects needs to show that the investment “is viable, affordable, and meets the objectives of the scheme”. A business plan for Tier 1 projects is contained within the application form.

A template for Tier 2 business plans, as well as the list of reference priced eligible items for Tier 1, will be available when the scheme opens.

Minister McIlveen also announced that all Tier 2 applications involving construction will have to include a map produced from a planning tool programme on the DAERA website. “My Department has developed the Farm Investment Planner Mapping Tool. It is designed to assist the farmer with mapping existing and potential capital investment,” she said.

In addition, all applications will have to include a self-assessment certificate indicating that farmers have reviewed health and safety on their farms. The “Making it Safer” online tool can be found at www.farmsafenet.org.

Meanwhile, it is understood that Countryside Services Ltd, based in Dungannon, has secured the contract to administer applications to Tier 1 of the scheme. It also previously administered the Farm Modernisation Programme.