rural development programme funding opportunities 2017

Rural Development Programme Funding opportunities in 2017

Chair WelcomeAndrew May, Chairman, Cornwall Agri-food Council

pkf-francisclark.co.uk

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Housekeeping

Programme

Rural Development Programme for England – January Growth Calls – James Glover, Deputy Head of Southern Region Rural Development, Rural Payments Agency/Paul Dean, Rural Development Manager

Introduction to LEADER – Jon Teague, LEADER Groups

Other Funding Opportunities – David Rodda, Cornwall Agri-food Council

Getting Grant Ready – Richard Wadman & Brian Harvey, Corporate Finance Director, PKF Francis Clark

Q&A Panel Session - All

Lunch

1-2-1 sessions with the speakers & representatives from their agencies


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Rural Development Programme for England – January Growth Calls

James GloverRural Payments Agency

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Purpose

• Brief overview of the Rural Development Programme for England

• Grant funding available from January

• Application process and timescales

• Further information and support

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The Contribution of Growth programme to Rural Development

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CAP2014-2020

Pillar 1

sCMO Direct payments Greening

Pillar 2 – RDPE £456m

Growth

£177m

Countryside Productivity£141

m

LEADER

£138m

ERDF ESF

Structural Funds

RDP (EAFRD)

Growth Programme

£177m

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Background• The Government has confirmed that it will guarantee funding for RDPE

Growth Programme grants if these are agreed and signed before the UK’s departure from the EU, even if the grant agreements continue after we have left the EU, subject to projects meeting the following conditions: they are good value for money they are in line with domestic strategic priorities

• Following the announcement on Thursday 26 January Defra has launched RDPE calls for the following socio-economic project themes: Food Processing Business Development Tourism Infrastructure

• Future Growth calls for Tourism Co-operation and Broadband are currently under consideration.

• Countryside Productivity grants are likely to follow later in 2017.

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How are the funds managed?• The Rural Payments Agency (RPA) delivers the grants, working with

European Structural and Investment Fund (ESIF) Sub-Committees (ITI Board in Cornwall & Isles of Scilly) in Local Enterprise Partnerships (LEP) areas.

• RPA’s role is to assess applications for grants, with advice from the ESIF sub-committees.

• Local Enterprise Partnerships (LEPs) are partnerships between public bodies and businesses. Their role is to decide local priorities for the grants – where money should be directed to give the most benefit locally.

• The grant process is competitive. When you apply for a grant, you’re competing with other applicants in your LEP area. RPA assesses all applications to see how well they fit the priorities for funding and which projects provide best value for taxpayers’ money.

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Lessons Learnt From Previous Calls• Previous calls for projects applications were launched in the summer 2015.

• The numbers of applications received was lower than we would have liked.

• Wide ranging review has resulted in a number changes to deliver better quality applications (further details in remainder of the presentation); Simplified applicant information – one handbook per subject area (rather

than separate info for every LEP area) Moved to longer application windows (12 months rather than 3 months),

with larger associated budgets available. Introduced a shorter (4 page) Expression or Interest (EoI) form rather

than an outline application. We will aim to provide a response to your EoI within 30 working days (6

weeks) from point of submission, including input from your local European Structural and Investment Fund (ESIF) Sub-Committee.

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Overlapping LEP Areas

• Some areas of the country are part of two LEPs, and may have two grant application calls available at the same time but with differing priorities/ support available.

• You can only apply for one source of Rural Development Programme for England funding per project.

• Therefore, you should apply to the LEP or LEADER (more later) call which has the ‘best fit’ between your project objectives and their identified local and national priorities.

• If we find that you have applied to the wrong LEP call at EoI stage, we can address this with you through the appraisal process.

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Business Development, Food Processing and Tourism Infrastructure Calls

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Business DevelopmentWho can apply? • Small rural businesses – new or existing. That includes farmers who want to diversify into non-

agricultural activity.

Who can’t apply?• non-departmental public bodies or Crown bodies • members of Producer Organisations under the Fresh Fruit and Vegetables Aid Scheme who have

(or can apply) a grant for the same project through their operational programme document • projects that are carried out only to meet a legal requirement

What are the grants for? • To help rural businesses grow and create more jobs. • Grant funding can help pay for (list of ineligible costs will be available in the handbook):

constructing or improving buildings buying new equipment and machinery

How much money can you apply for? • Grants can cover up to 40% of eligible costs of a project. Typically , the minimum grant is

£35,000 (minimum project size of £87,500) though this will vary in some LEP areas. State aid rules limit funding to €200,000, around £170,000

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Business Development National priorities for funding - Your project is more likely to get a grant if it achieves at least 2 of the following:

• Create jobs - Creates new, higher-skilled or higher-paid jobs. Creates at least 1 FTE job for every £30,000 of grant funding.

• Grow your business - Demonstrates a clear future plan to grow your

business.

• Improve productivity through innovation - Introduces new techniques, equipment or processes to a business to make it more productive.

• Open new product markets - Helps your business sell goods or services to new customers or markets.

• Export - Helps your business access export markets.

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Business Development

Local Priorities for Funding - Cornwall and the Isles of Scilly

Initial amount allocated to Call - £1.35 million

Minimum grant - £50,000 in Cornwall£10,000 on the Isles of Scilly

Maximum grant - €200,000 approximately £170,000

Priority will be given to projects that:

• generate growth through an increase in turnover and jobs in the applicant business• improve productivity in the applicant business

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Business Development Local Priorities for Funding - Cornwall and the Isles of Scilly (continued)• create jobs that are paid above the average annual salary for Cornwall and the Isles of Scilly (£17,389)• enable farm businesses to diversify into non-agricultural activities, including

• creation of office space/workspace to fulfil evidenced local need• development of craft and handicraft activity• leisure, recreational and sport activities

• create new and expand existing micro and small businesses in rural areas• allow the applicant business to start exporting products, or increase the volume of products exported/ reduce the need for imports• invest in equipment, technologies or processes, which can include commercialising academic research or trials, to make new or higher quality products• invest in, equipment, technologies or processes to reduce waste, where this forms part of the project

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Food ProcessingWho can apply? • Food and drink businesses that process agricultural and horticultural products.

Who can’t apply?The following are not eligible for the grants: • non-departmental public bodies or Crown bodies • members of Producer Organisations under the Fresh Fruit and Vegetables Aid Scheme who have

(or can get) a grant for the same project through their operational programme document • projects that are carried out only to meet a legal requirement

What are the grants for? • To help businesses grow and create new jobs. • Grant funding can help pay for (list of ineligible costs will be available in the handbook):

constructing or improving buildings buying new equipment and machinery

How much money can you apply for? • A minimum of £35,000, though this will vary in some LEP areas. • Intervention dependent on nature of activity, for example primary agricultural production (annex 1)

in and out of process could be eligible for up to 40%.

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Food ProcessingNational priorities for funding – Your project is more likely to get a grant if it achieves at least 2 of these;

• Create jobs - Creates at least 1 FTE job for every £30,000 of grant funding.• Grow your business - Increases the turnover and profitability of a business.• Benefit the supply chain - Provides direct benefits to the farmers and

growers who supply the raw materials, particularly local farmers and growers.

• Access new markets - Helps you sell more products locally, nationally and through exports.

• Show innovation - Introduces new techniques, equipment or processes to a business

• Create joint ventures and partnerships - Creates new and useful links between businesses – for example between growers and processors.

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Food ProcessingLocal Priorities for Funding - Cornwall and the Isles of Scilly

Initial amount allocated to Call - £3 million


Maximum grant - £1 million

Priority will be given to projects that:• generate growth through an increase in turnover and jobs in the applicant business• improve productivity in the applicant business• create jobs that are paid above the average annual salary for Cornwall and the Isles of Scilly (£17,389).• located in a Food Enterprise Zones

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Tourism Infrastructure Who can apply? • If the project is commercial and will make a profit, only small businesses and farmers who

want to diversify can apply. • If the project won’t make a profit, a wide range of organisations can apply (including public

bodies and charities).

• Who can’t apply• Crown bodies• Projects that are carried out only to meet a legal requirement

What are the grants for? • The grants will help fund the costs of capital expenditure on tourism infrastructure. The aim

is to support projects that will encourage more tourists to come, to stay longer and to spend more money in rural areas.

How much money can you apply for?• Normally, a minimum of £35,000 – though this will vary by LEP. • Maximum grant rate for commercial projects will be 40%. Higher levels of support available

for semi-commercial (80%) and not-for-profit (100%) activity.

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Tourism Infrastructure National priorities for fundingYour project is more likely to get a grant if it achieves at least 2 of these;

• Create jobs - Creates at least 1 FTE job for every £30,000 of grant funding. Creates skilled jobs.

• Extend the tourism season - Attracts tourists outside the usual period of May to October

• Develop tourist attractions and infrastructure - Creates or develops tourist attractions and infrastructure to increase the range of attractions available locally, encourage tourists to stay longer and increase their spend.

• Collaborate - Encourages collaboration and links between local tourism businesses.

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Tourism Infrastructure Local Priorities for Funding - Cornwall and the Isles of Scilly

Initial amount allocated to Call - £2.175 million


Maximum grant - Commercial projects €200,000 approx. £170,000Other projects £250,000 subject to state aid rules

Priority will be given to projects that show one or more of the following:

•benefit the rural area as a whole including multiple businesses, not just the applicant business• improve the range and quality of tourism products for example by investing in leisure, cultural and heritageamenities

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Tourism Infrastructure Local Priorities for Funding - Cornwall and the Isles of Scilly

Priority will be given to projects that show one or more of the following (continued):

• create jobs that are paid above the average annual salary for Cornwall and the Isles of Scilly (£17,389)• increase the volume and value of rural and farm based tourism in the off-peak season, for example bycreating new all-weather tourist attractions and activities• attract more visitors from overseas• increase the number of visitor overnight stays, for example by improving existing guest facilities• develop and increase outdoor tourism, for example cycling and walking• fit with the local tourism strategy and relevant destination management plan• improve the competitiveness of micro and small businesses in the tourism sector in rural areas• show innovation where there is clear market need and demand

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LEADER Funding

• Another avenue for securing RDPE funding support is through LEADER.

• LEADER funding is delivered through 80 Local Action Groups (LAG) across England, supported by an accountable body, providing grants to enable jobs and Growth.

• LEADER funding is available for similar types of activity, but often offer support at a lower threshold – grants can be available from £2,500 upwards.

• You can not apply to LEADER and Growth funding for the same project.

• In developing your project, it may be worth considering which fund is more appropriate for you (depending on the scale and type of activity) and the LEP minimum grant thresholds in your area.

• https://www.gov.uk/guidance/rural-development-programme-for-england-leader-funding

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https://www.gov.uk/guidance/rural-development-programme-for-england-leader-funding

https://www.gov.uk/guidance/rural-development-programme-for-england-leader-funding

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Application Process

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What we look for at Expression of Interest stage?

• EoI stage intended to give you a relatively quick view on whether your proposed project; is eligible for RDPE funding if it ‘fits’ with local priorities for grant support.

• Circa 4 page form seeking key information.

• RPA will aim to provide an outcome 30 working days (circa 6 weeks) after submission, including seeking a view on ‘strategic fit’ from your local European Structural and Investment Fund (ESIF) Sub-Committee.

• EoI application forms and handbook guidance will be available from the following website: https://www.gov.uk/topic/farming-food-grants-payments/rural-grants-payments

• Completed EoIs should be e-mailed to: [email protected] 27

https://www.gov.uk/topic/farming-food-grants-payments/rural-grants-payments


mailto:[email protected]

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What we look for at Full application stage?

• If invited to the next stage, a full business case is required for the RPA to make a funding decision on your project.

• Full application stage remains competitive – although your EoI was successful it is no guarantee your full application will be funded.

• We will agree a submission date with you, but given the limited time available to commit the funds, you should aim to submit your application as soon as possible.

• It can take a number of months (average of 3 months) to pull together your application. You will be given a specific RPA point of contact to support you.

• At this point, it is expected that a project would have received; All required approvals (such as planning permission), Secured match funding, Can evidence the case for need/ demand, and Demonstrate value for money against costs (such as providing three like for like quotes for

each area of expenditure). .

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What we look for at Full application stage?

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Strategic Fit How well the project meets the national as well as the local priorities for funding.How the project will impact on the environment.That the project does not disadvantage anybody in terms of ethnicity, disability, age or gender.

Value for Money How the project costs represent value for money i.e.in terms of outputs/outcomesThe amount of grant required to deliver the outcomes and outputs (E.g. Cost per Job).What difference grant funding will make compared to what would happen without grant funding.

Need and Demand

Why grant funding is required for the project.A clearly identified market need for the project.The impact the project has on other businesses.

Financial Viability

How the project impacts on your existing business operationsHow you will fund the project until the grant can be claimed.How the business will benefit from the project financially.

Deliverability and sustainability

Whether the project will be delivered within budget and on time.That the right skills and resources are in place to deliver the project successfully.How the project outputs and other benefits will be monitored and recorded.That risks to project delivery have been identified and how they will be mitigated.

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Ineligible costs (see also list in handbook)

Some examples:• Costs of refurbishment and simple like-for-like

replacement of buildings, machinery or equipment• Leasing contract costs – like lessor’s margin, interest

refinancing costs, overheads and insurance charges• Costs of computers, software or printers used in general

running the business (e.g. accounts or processing orders)• Salaries or running costs• Developing or setting up agricultural businesses• Costs of marketing and promotion Contributions in kind

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Projects that will not be supported • Projects which displace existing activity in the rural area

• Where the project is to relocate a business with no net increase in economic activity or jobs;

• Where there is no demonstrable plan to increase productivity as a result of the investment

• Where the project only creates a small number of low productivity jobs and such jobs are not needed in the area

• Projects that have incurred costs before they have received a decision and grant funding agreement

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Top Tips• Jobs & Growth – whole purpose of the Growth programme is to create jobs and

economic growth across rural areas, so tell us how your project will do this.

• Sell us your idea – explain clearly what your project does and how it will benefit the economy. It is a competitive process.

• Don’t ask for full amount if you don’t need it – we will assess your application on a competitive basis ensuring it represents value for money for the public purse. You should only apply for the amount you need to for the project to proceed.

• Show us what the grant funding means to your project – why is it critical you receive public money to enable it to happen.

• Do the market research – you have to be able to evidence that there is a real need/ demand for what you want to do.

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Further info

• All information (including the handbook for each call and EoI application form) will be available on the .gov.uk website https://www.gov.uk/topic/farming-food-grants-payments/rural-grants-payments

• Please also contact the RPA if you would like to discuss your project/ would like any further advice

Rural Payments helpline : 03000 200 301

Email: [email protected]

Completed EoIs should be e-mailed to: [email protected]

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LEADER

Jon TeagueCornwall Development Company

Liaison among Actors in Rural Economic Development

Previously up to a maximum of £35,000but this limit has been removed

40-50% towards project costs depending on priority

Rural Development Programme 2014-2020

European LocalNational

Countryside Stewardship€3.875bn(£3.1bn)

Countryside Productivity€176m

(£141m)

Growth Programme€221m

(£177m)

LEADER€172.5m(£138m)

Rural Development Programme for England

£6m for Cornwall delivered through 4 Local Action Groups

Local Action Groups are made of volunteers from the private sector, public

sector and voluntary & community sector

Cornwall Development Company acts as Accountable Body for Local Action Groups

boost rural tourism

increase farm productivity

increase forestry productivity

provide rural services

provide cultural and heritage activities

LEADER funding priorities:

support micro and small businesses and farm diversification

Timescale:The whole application process will take between 4 - 7 months

3. Complete and submit your Full Application for appraisal and decision by the LAG

2. Complete and submit an Outline Application to confirm eligibility and receive feedback from the LAG

1. Contact the relevant LAG Project Coordinator for your area

How to access LEADER funding:

Project: Installation of additional processing equipment to double the production facility’s capacity. Greater range of pot sizes and ripple effect ice cream.

Business: Moomaid of Zennor Ice Cream Ltd

Full cost: £51,250

LEADER: £23,062

Benefit: 2.39 FTE jobs – local farm to sell extra 10% of total milk output at a premium rate to Moomaid.

LEADER project files

Project: Improvements to campsite facilities (toilet/shower/laundry blocks) and creation of hard standing pitches.

Business: J&J Sawle & Son (Beacon Cottage Farm)

Full cost: £68,850

LEADER: £27,540

Benefit: Extend the season - increase occupancy - reduce time spent on maintenance/cleaning - increase turnover by 10% - create 0.3 FTE job


Project: Installation of bottle blower added to the beginning of the bottling line. Can blow their own bottles from small blanks.

Business: Cornish Natural Spring Water

Full cost: £84,689.91

LEADER: £33,875.96

Benefit: 1.5 FTE jobs – less deliveries and storage of bottles – less spillage - - increased efficiency of bottling line.


Project: Installation of a walk-in chiller unit to an old dairy building to increase the numbers of turkeys being raised and processed.

Business: Treway Farm Cornish Turkeys

Full cost: £11,495

LEADER: £5,747.50

Benefit: 6 seasonal jobs – reduce the expense of hiring chiller trailers and other costs during the busiest periods.


www.localactioncornwall.co.uk

Pick up a flyer and talk to a co-ordinator

Liz GilbertProject Co-ordinator

Tel: 01872 324445 Mob: 07973 813803

[email protected]

Caroline HanlanProject Co-ordinator

Tel: 01872 326750 Mob: 07484 011512

[email protected]

Jon TeagueProject Co-ordinator

Tel: 01872 326751 Mob: 07484 010456

[email protected]

Josyanne ThatcherProject Co-ordinator

Tel: 01872 326735 Mob: 07484 010458

[email protected]

Other Funding OpportunitiesDavid Rodda MBE, Cornwall Agri-food Council

Getting Grant Ready (or getting ready to grab that EU cash)

Richard Wadman & Brian Harvey, PKF Francis Clark


Grants – some of the businesses we have worked with…


1. Project 2. Robust Business Case3. Eligibility (plus)4. Dialogue with fund holders and others5. Patience6. Financials7. Match funding (plus)8. Need for grant – presenting the case9. Procurement

10. Post Offer Letter11. Prepare for acronym fatigue…!

Getting Grant Ready


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Project

A project for grant funding will generally:

• Defined capital expenditure

• Defined job creation

• Facilitate growth

• Be geographic specific

• Not be for “business as usual” or implementation of statutory requirements


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Robust business case

Can you support assertions that project will:• Lead to job creation?• Lead to growth? • Be sustainable (self sufficient after grant)?

Important for you and for grant administrator (competitive process)

Market research• Customers and Competitors • Supply chain


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Eligibility (plus)

Read the guidelines/ seek guidance:• Geography (“Rural”)• Business size• Sector• Qualifying expenditure• Jobs (FTE)• Fit with local priorities • Timelines• State aid• Annexe I• Procurement• VFM

Enquires?1. No names

basis2. Short paper


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Dialogue/ Form relationships

Fund administrators:

• Understand what they need

• Understand their timelines

• Put your business case to the fore

• They will be supportive (as far as the scheme rules allow)

Others, including:

• Growth Hub; Cornwall Development Company


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Patience

Take deep intake of breath

Practice counting to 10

Remember your “end goal”


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Financial appraisal

Sustainable and robust proposition:

• Accounts (up to date, if not why not?)

• Management accounts (if not available, why?)

• Projections?

• Aim is present your business and the project as financially credible (“public money” and “your money”)

Get Grant Claim/ Audit ready (Grants process does not stop at Grant Funding Agreement…)


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Match funding (plus)

Grant schemes seldom 100% of qualifying costs:

• Balance of qualifying costs to fund

• Non- qualifying costs to fund e.g., increased staff costs

Cash flow funding as grants normally paid post defrayal

Funding sources to match:

• Own funds (projections support/ sensitivity analysis)

• Other sources – see factsheet (seek confirmation s/t grant funding)


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Need for grant

Argument must be persuasive that without grant funding project would not go ahead (*):

• No spare funds or capacity to borrow

• Cash/ debt capacity earmarked for other projects

• Like to maintain a “safety net”

• Risk adverse

• Accelerates the project (*)


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Procurement

Understand the procurement requirements

• Count to 10

• Keep your end goal in mind

• Comply…

• Keep records and present these to fund administrator


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Post Grant Funding Agreement…

Ensure that you do “grab” and retain that EU cash

• Understand the terms of Grant Funding Agreement, including:

• Basis of making grant claims• Audit requirements?• Events of default/ repayment clauses

• Comply with terms of Grant Funding Agreement

• Keep records• Keep a dialogue with fund administrator


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RDPE – Rural Development Programme for England

LEADER - Liaison among Actors in Rural Economic Development (it is French..!)

LAGs – Local Action Groups

EAFRD – European Agricultural Fund for Rural Development

ESIF - European Structural Investment Funds

State Aid

De-minimis

Cross-cutting themes

GGR – Getting Grant Ready

Acronyms and terminology

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Disclaimer & copyright


Chair Sum upAndrew May, Chairman, Cornwall Agri-food Council

Q&A PanelChaired by – David Rodda


Lunch &

1-2-1 sessions