The latest indications are that the £200m farm capital grant scheme under the new Rural Development Programme (RDP) might be open for applications before the end of 2015.

The RDP was submitted to the European Commission for approval last October, a process that normally takes around six months. Once formally approved, more details should emerge. In the meantime, over the next few weeks, DARD is expected to come forward with tools to help farmers start the planning process.

The scheme is likely to be opened in stages and have two tiers – the first for project costs of between £5,000 and £30,000 and the second tier for project costs up to £625,000 (£250,000 grant). As the rate of grant rises, expect the level of scrutiny to increase – anyone claiming £250,000 of grant will require a robust business case.

In terms of what will be eligible for assistance, the scheme will favour applicants increasing farm output and efficiency.

A project that upgrades existing facilities is unlikely to be eligible. There is also the possibility that young farmers will receive a higher grant rate (50% rather than 40%), although if DARD uses the same criteria as was used in the young farmers scheme, a young farmer who is ineligible for that scheme (head of a holding for more than five years) suffers a double hit.

There is then the fear that the intensive sectors (pigs and poultry) use up a lot of the money. Some 320 projects getting the full grant amounts to £200m. Expect weighting criteria to be applied, which favours some sectors over others.

While some have suggested a £100,000 cap to ensure that the money is evenly distributed, a significant upturn in prospects across a number of sectors will be required to get the money spent, irrespective of the grant rate.