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Plans are being made within DAERA for a second tranche of the Tier II capital grant element of the Farm Business Improvement Scheme to open by the end of March next year.
There were significant delays in processing applications in the first tranche and 18 months on from when applications closed in March 2017, 29 applications still have outstanding queries.
A DAERA spokesperson confirmed on Tuesday that 109 applications have been approved to date.
In total, 32 were unsuccessful and a further 20 applicants withdrew from the process.
Planning permission with local authorities was the main cause of delays in the first tranche, and reports suggest that most Tier II applicants may need to contact planners next time round.
In preparation for the second tranche, a DAERA spokesperson said that potential applicants should consider how the investment will “enhance the long-term financial and environmental performance” of their farm.
“They should also look into the relevant planning and environmental requirements and health and safety legislation,” the spokesperson said.
Tier II provides 40% grant funding for capital investments costing over £30,000, up to a maximum grant of £250,000. With £12m of funds used for the first 109 successful applications, the average applicant in the first tranche is to receive a grant of around £110,000.
The second tranche of Tier II is subject to budgetary approval from the Department of Finance.
With a £40m budget for two initial tranches of Tier I and Tier II, it is expected that approximately £10m will be available from the second tranche of Tier II, which should fund approximately 100 applications.
The DAERA spokesperson said that a new tranche of Tier II would also be subject to a “lessons learned review” of the first tranche of the scheme. It is understood that a questionnaire has been sent to first tranche applicants, as well as consultants that were involved in the scheme.
“The department will publish guidance for potential applicants when the opening of a second tranche of Tier II is confirmed,” the DAERA spokesperson said.
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