Farming can be a rewarding experience and job but it can also be a costly one. Upkeep of land and new equipment can set you back a lot, especially if your farming business is relatively new or you don’t have a lot of money to begin with. Fortunately, if you are looking for some funding options to support your agriculture or farming business, there are many available.

RDPE Farm Productivity Scheme

The government currently has a number of grants available for farming, one of which is the Rural Development Programme for England (RDPE) Farm Productivity Scheme.

The grant can cover 40% of the eligible costs of a project and are for a minimum of £35,000.  However, there are rules which dictate what the grant can and cannot be used for. The scheme states that the grant is to be used to “improve farm productivity”, which may include purchasing equipment to aid crop and livestock production, as well as to improve the efficiency of livestock slurries and manures.

The grant cannot be used to buy irrigation equipment, crop storage or purchase equipment used in the processing and packing of fruit and vegetables.

One thing to bear in mind though is that while the grant is provided by the government, it is actually funded by the European Union which has naturally caused some concern for farmers in relation to Brexit. Fortunately, the government has stated they will guarantee funding for all applications that have been signed and approved before the UK departs from the EU.

You can find out more about the scheme and how to apply here.

LEADER Funding

While also funded by the EU, LEADER funding works slightly differently in that decisions are made by small localised teams across the country, known as LAGS.

Each LAG decides on what projects to fund in their respective area. To ensure you stand the best chance of securing funding, it’s important that your application fits into the LEADER qualities. From a farming perspective, you want to ensure the money will go towards farm diversification and increase farm productivity.

You can find a list of LAG groups, as well as their contact details, here.

Business Loans

Outside of government funding, many banks and private institutions can provide valuable sources of funding. Unlike the grants previously mentioned, business loans will need to be repaid.  

This may dissuade many farmers, but changes over the years have made it easier to take out a manageable business loan. What’s more, the Enterprise Finance Guarantee (EFG) is an effective way for small or medium size business to secure a loan where they may have had difficulty otherwise.

Of course, don’t just jump into applying for a loan without doing proper research. Many banks and institutions won’t even consider your application unless you have a well thought out and detailed business plan.

It’s also worth shopping around to get the best deal. You might even consider looking into using a broker who specialises in farming loans to help you with the overall process.

For more information on funding options available, contact our dedicated team today.