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The initial budget approved for the capital grant element of the Farm Business Improvement Scheme (FBIS) is unlikely to have enough left over to fund a third tranche of Tier I.
A total of £40m was approved for two tranches of both Tier I and II in 2016. It is understood that £7.5m was earmarked for each Tier I tranche, with £15m for the first tranche of Tier II and £10m for the second.
Tier I provided up to 40% grant funding for equipment and machinery costing between £5,000 and £30,000, whereas Tier II was for larger construction-type developments with up to £250,000 of grant funding available for individual projects.
On enquiry, a DAERA spokesperson said that £13.2m worth of grant funding has been allocated for 122 Tier II projects that have been approved in the first tranche of the scheme so far.
“It is not possible to be definitive about total spend until all claims have been received, processed and paid,” the spokesperson said.
When asked about the opening of a second tranche of Tier II, the spokesperson said that no date has been confirmed for the launch of the scheme as of yet.
The NI executive initially promised £200m to fund a capital grant scheme under the current Rural Development Programme (RDP). Getting approval for more funding for the capital grant element of FBIS will require an executive to be sitting at Stormont for ministers to sign off funding.
With funding used on two tranches of Tier I, the first tranche of Tier II and with a second tranche expected shortly, the possibility of funds being left over from the original £40m to fund a third tranche of Tier I appears remote.
“Consideration of any further tranche of Tier I would be subject to business case approval and availability of funding,” the DAERA spokesperson said.
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