We own and run a business which manufactures and sells agri-equipment. For the last few years, we’ve worked hard on making new, more eco-friendly ag-tech equipment, and we’ve paid for everything ourselves.
We’ve started out well, but now we’re not sure about our next steps.
We still want to keep improving our product, especially as sustainability is becoming so important. Are there any supports out there that can help us with the eco side and with growing the business?
ANSWER: Turning new ideas into real products can take a lot of time and money. Luckily, in Ireland there are many groups that can help – especially if your ideas are about being sustainable or creating something new.
Local Enterprise Offices (LEO) around Ireland are most likely your first port of call as they offer feasibility study grants for product concepts and they also assist business expansion. To get this help, you’ll need to start working on a business plan with financial projections and think about who might want to buy your new products. LEO might even help with this planning.
In terms of testing and gaining additional expertise, LEO and Enterprise Ireland offer Innovation Vouchers. These connect businesses with relevant experts, providing you the opportunity to work with a knowledge partner. Enterprise Ireland’s Technology Gateways can also offer the opportunity work with a Technological University to bring your concept to prototype stage and test it.
There is also a European programme, called Horizon Europe where Enterprise Ireland has assisted many Irish businesses in collaborating with European counterparts on research and development of sustainable agri-equipment. Part of this initiative could very well be working with partners like universities and there is the potential for substantial funding for the right concepts.
There is also the potential, under the Department of Agriculture, to avail of the European Innovation Partnership which offers support for research and new concept trials. Importantly, Teagasc collaborate with numerous companies on research, trials and can offer specialised support and knowledge transfer opportunities.
Many other supports are also available, whether it be cross-border collaborations with universities through InterTrade Ireland or gaining subsidised training on sustainability and innovation via Skillnet.
In terms of tax-based supports, one of the most valuable tax incentives for innovative businesses is the Research & Development (R&D) tax credit.
The tax credit could be substantial; however, Revenue does enforce strict guidelines in terms of claims.
Staff costs, materials used in trials, specialist consultancy and some overheads linked to the R&D could be applicable.
A feasibility study could even be eligible as long as it meets the criteria. What is key here is the right advice from a tax professional. If you have never claimed R&D tax credits before, your advisor may be able to assist you in gaining pre-approval from Revenue.
Finally, do not underestimate the value of networking within your industry. Particular elements of your product development process will be sensitive from a commercial point of view. However, collaboration with other innovators, researchers and ag-tech specialists could be highly beneficial.
These engagements could lead to pilot projects and crucially, access to information about upcoming initiatives and assistance programmes.
While it can seem daunting when even considering looking for assistance to develop a new concept, there are so many different funders and funding programmes.
These organisations are there to help you though. Ireland has a rich history of supporting business innovation, and a key focus is now on sustainability and circular economy. It appears that you are a well-established business that is ticking those boxes. I would highly recommend engaging with the above organisations and explore the opportunities available to help your business grow.
Andrew Brolly, is fractional cfo with ifac, which is the professional services firm for farming, food and agribusiness.