Farming Transformation Fund – Adding Value grant scheme open

09 June 2022

Farm business Agricultural Transition Plan
NFU Vice President David Exwood pictured with produce in the shop at his mixed farm in West Sussex

NFU Vice President David Exwood pictured in the shop at his mixed farm in Horsham, West Sussex. Products to assist with processing agricultural products for sale and retail display equipment are among the items that would be eligible for a capital grant under the Added Value funding scheme.

Defra's Adding Value grant scheme under its Farming Transformation Fund is now open for applications. The closing date for applications is 21 July 2022.

Adding Value grants will be awarded to farmers and growers to support their work processing, diversifying and adding value to their products.

It is a £30m fund, which will offer capital grants of between £25k and £300k (at 40% intervention).

It is a competitive fund. The RPA will award funding to the strongest applications.

Eligible businesses

To be eligible to apply for an Adding Value grant, you must be a:

  • grower or producer of primary agricultural products (agricultural, horticultural and livestock)
  • business processing agricultural products which is at least 50% owned by agricultural or horticultural producers.

Types of grant – what items are covered?

If your business is eligible, you can apply for an Adding Value grant to pay for capital items that will enable you to add value to eligible agricultural products, after they’ve been harvested or reared.

Eligible capital items include:

  • equipment for preparing or processing edible agricultural products for added value sales.
  • equipment for ‘second stage’ processing of grain - for example, colour sorting, blending.
  • equipment for processing non-edible agricultural products into new products (for example, flax, hemp, wool, hides, and skins).
  • equipment for retailing eligible agricultural products (for example vending machines or display facilities).
  • premises for the preparation or processing of added value agricultural products, including associated integral storage areas.

Second-hand items are eligible for grant funding, provided that the associated supplier quote includes a statement that the item:

  • has not previously been purchased with public funding
  • is fit for purpose
  • does not cost more than an equivalent new item
  • is expected to last for at least five years.

Application process

The Added Value grant fund opened for applications on 9 June 2022. The closing date for applications is 21 July 2022.

Defra has issued a manual so you can find out more and consider whether a grant application would be suitable for you.

You can read the manual on the Gov.uk website: Guidance | Adding Value grant for farmers to improve crops or livestock

Making your application

Stage 1: Complete the online check to make sure you're eligible and how well your project fits the funding criteria. This will give you an idea of how successful your application is likely to be.

Stage 2: If your application scores highly enough against the funding priorities, you will then be invited to make your full application. Details of how to do this will be outlined when the application period opens. The deadline to submit your application will be 31 January 2024 (to include planning permission if required).

grants

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