Rural Priorities Funding Scheme Open for Business in 2012

Scotland's Rural Priorities funding scheme will be open for business again in 2012, Rural Affairs Secretary Richard Lochhead confirmed this week.

Mr Lochhead told the AgriScot event that there would be a further round of Axis 1 (restructuring, development and innovation) and Axis 3 (farm diversification) Rural Priorities funding next year. A further round of Axis 2 (agri-environment) has previously been confirmed.

However, he said it was vital the Axis 1 funding was spent carefully as there was less money in the pot because spending was brought forward in 2009 and 2010 in response to the credit crunch.

He said: "The Rural Development Programme has provided badly-needed funding for Scotland's rural areas since it began in 2007, helping to sustain and create hundreds of jobs.

"We have already announced there will be a full agri-environment funding round under Rural Priorities next year and today I'm pleased to confirm that there will also be a further rounds for the other parts of Rural Priorities, Axis 1 and 3.

"However, it's vital that we get the maximum possible bangs for our bucks and that's why, for Axis 1, this funding will be targeted to provide the maximum possible benefit.

"To achieve this, we will concentrate the round on food processing, new entrants, renewable energy and climate change, including energy efficiency. There will also be a lower cap on awards to make sure as many businesses as possible can benefit.

"But I'd like to reassure people that we're not moving the goalposts for those who've already applied - so projects already submitted to us will be processed on the basis of the rules when they applied."

Mr Lochhead also updated the event about the latest progress on European negotiations to reform the Common Agricultural Policy (CAP) and reiterated his intention to get a fair deal for Scotland's farmers.

He said: "On Monday, I met with Commissioner Ciolos in Brussels. That meeting convinced me, yet again, how vital it is that we get the foundations right.

"So that means lots of hard work - from officials and stakeholders - with commission officials to explain to them the nature of our farm sector. This is crucial because if they understand that, they'll understand what we need the future CAP to look like.

"The hard work has already begun and I know it will be a long road. However, we couldn't be working more closely with our stakeholders and we'll work out the way forward together."

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