Dairy farms made up the largest proportion of successful applications under the first two tranches of the Tier I capital grant scheme in NI.

A breakdown of grant recipients by farm type shows that milk producers made up 42.2% of successful applications, 28.4% were beef or sheep farms and 19.8% of Tier I recipients came from the poultry sector. Across other farming sectors, 3.4% of Tier I recipients were pig farms, 1.8% were crop farms, 2.3% were mixed crop and livestock farms, with the final 2.2% coming from the horticulture sector.

The figures were published last week in a DAERA report on the implementation of the current Rural Development Programme 2014-2020.

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The Tier I scheme provided a maximum of 40% grant funding for equipment and machinery costing between £5,000 and £30,000.

Both tranches were oversubscribed and applications were assessed on a points-based selection system. More points were available for criteria such as having a band-one priority item, an online application and, crucially, a grant request that was below 40% of DAERA’s item reference price.

Uptake

The report notes that there was a low application rate coming from farms under 30ha in size.

“Feedback from applicants suggested smaller farm holdings would not be able to access funding for the 60% input required,” the report reads.

Farm profitability and the availability of cash to invest is also likely to have been a key factor influencing the different level of scheme uptake across farming sectors. Variations in the range of eligible items for each sector could have affected uptake too.

The DAERA report points out that beef and/or sheep farms make up 79.3% of NI farms, but accounted for only 35.2% of Tier I applications. Dairy and poultry farms account for 10.6% and 2.5% of NI farms, yet both sectors made up 39.5% and 16.3% of applications respectively.

Younger farmers made a larger proportion of applications when compared with the actual age profile of NI farmers. Also, applicants aged 25-39 had a 58% success rate, compared with 46% for applicants aged 40-65. Both observations stem from extra selection points being available for young farmers aged under 40.

Tier II

There has also been one tranche of the Tier II grant scheme, which provides 40% funding for buildings and large-scale investments costing over £30,000, up to a maximum grant of £250,000.

A full breakdown of applications by farm type is not available, although the report indicates that no projects based around beef or sheep enterprises had been approved for funding by the end of last year.

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