The first tranche of the capital grant element of the Farm Business Improvement Scheme opened for Tier 1 applications on Monday (31 October) and closes on 16 December at 4pm. Tier 1 provides 40% grant funding for new machinery and equipment items costing between £5,000 and £30,000.

However, applications for 40% grant support for construction projects costing over £30,000 and with maximum grant up to £250,000 under Tier 2, will not open until 19 December 2016 and will close on 24 February 2017.

It should be noted that applicants cannot apply for funding for both Tier 1 and Tier 2 projects in the first tranche of the scheme. An initial budget of £40m has been approved for two tranches of the scheme, with the second tranche expected to open in autumn 2017.

The total maximum grant available to a farm business over the lifetime of the scheme for both Tier 1 and Tier 2 is £250,000, and the total grant available over the lifetime of Tier 1 alone is £12,000.

Overall, 160 items are eligible for grant funding under Tier 1. The aim is to improve farm sustainability, with the items listed in four sections covering various themes.

Eligible items

In the first section of ‘‘environment, weather resistance and climate change’’, eligible items include trailing shoe and dribble bar slurry equipment, automated slurry scrapers and heat detection technologies.

Feed bins, rubber slats, cubicles and automatic cluster removers are included under the animal and plant health section. The third area of health and safety includes sheep handling units, trailers and slurry pumps. Diet feeders, zero grazers and grass tedders are available for support under production and resource efficiency.

Fencing made it on to the list for double fencing at boundaries, as well as permanent electrified fencing and standard permanent fencing to sub-divide paddocks to improve grassland management. Drainage was included in last year’s whole farm needs assessment survey but, in the end, funding is not available. The full list of eligible items is available on the DAERA website.

Assessment of applications is based on selection criteria points.

A minimum of 40 points are required and DAERA has said that applications will be ranked if this tranche is oversubscribed.

Each item is listed with a reference price and a band number from one to three, which represents how the item meets the terms of the scheme.

A maximum of 40 selection criteria points is available for band one items. If an application has several items, points are awarded based on the lowest scoring band item. Up to 39 points are also available for “value for money”. Where the item to be bought is 20% or more below the reference price, maximum points are awarded. Below that, points are awarded on a pro rata basis down to zero points if the item is bought at the reference price.

Online applications receive 11 selection points, applicants aged under 40 on 28 October 2016 receive five points and applicants with a level two qualification in agriculture also receive five points.

Grant support is paid at 40% of either the reference price or the actual price, whichever is lower. Prices do not include VAT, but businesses that are not VAT-registered can apply for VAT to be included in the grant.

Applicants are required to provide a support letter from a bank, complete the online farm safety assessment and complete the business plan within the application form for Tier 1 applications.

Items purchased before letters of offer are received will be ineligible and claims for grants can only be made once the items have been paid for in full.

Six events across NI are being held by DAERA between 7 and 17 November to provide information to potential applicants, the first being in Enniskillen on Monday night (see our Northern Ireland diary of events).