A differing view has been taken by the Ulster Farmers’ Union (UFU) and the Young Farmers’ Clubs of Ulster (YFCU) on the rate of grant for young farmers in the upcoming Farm Business Improvement Scheme (FBIS).

The £200m capital grant scheme should open for applications at some stage in early 2016, and like with most EU-approved schemes it comes with a 40% rate of grant.

However, there is provision in the legislation to allow young farmers under 40 – and set up as head of holding within the last five years – to avail of a 60% rate of grant.

That rate of grant is available to young farmers in the Republic of Ireland applying for the TAMS II capital investment scheme.

In NI, the Department has previously indicated its intention to apply a 50% grant rate for young farmers. It has been something publicly stated by DARD Minister Michelle O’Neill as recently as last week.

Despite that, the UFU has been consulting members on what grant rate they would want.

Earlier this week, it released a statement favouring a 40% grant rate for all farmers, but with selection criteria weighted in favour of all applicants under 40 (not just those who meet the EU definition of a young farmer – under 40 and head of a business less than five years).

“This is clearly not a solution with which everyone will agree,” acknowledged UFU president Ian Marshall.

“But it is a balanced position that does tackle the anomaly of young, established farmers being denied aid because of past business decisions that made sound sense at the time.”

However, the YFCU was quick to respond to the UFU position with its own statement, outlining its support for the 50% rate of grant to eligible young farmers.

Cathy Knowles, YFCU chair of agricultural and rural affairs, said: “With young farmers in many other parts of Europe benefiting from 60% grant aid, any further dilution to a flat 40% would be unfair.”

On enquiry by the Irish Farmers Journal, a Department spokesperson did not provide definitive clarity, despite the recent pronouncements by DARD Minister Michelle O’Neill.

The spokesperson said: “Issues such as scheme selection criteria and whether to award young farmers a higher rate of grant are being considered as part of the business case.

“The views of the UFU are considered, alongside other evidence, to help the Department arrive at a final conclusion. DARD has offered the UFU a meeting to discuss the FBIS.”