Guidance

How to apply for the Improving Farm Productivity grant Round 2 and claim payment 

Updated 22 March 2024

Applies to England

The Improving Farm Productivity grant Round 2 is competitive and you will not automatically get a grant.    

If you are offered a grant, you must accept a grant funding agreement (GFA) and reach the project start date in the GFA before you:

• start work    
• commit to any costs (including paying deposits)    
• enter into any legal contracts    
• place an order    

Any costs you incur before this, are at your own risk and may make your whole project ineligible.    

The application is a 2-stage process.    

Stage 1 – online checker   

The online checker closed at 11.59pm on 21 March 2024. No new applications can be accepted for this grant.

The online checker was used to make an initial online application.

You could check:

• if you could apply for a grant for your project
• how well your project fitted the funding priorities

Stage 2: make a full application    

If RPA invites you to make a full application, you will need to fill in the full application form and email it with your supporting documents to FTF@rpa.gov.uk.    

RPA will tell you the deadline for submitting your full application. If you do not submit a full application by this date, your application will be withdrawn.    

RPA will assess value for money alongside the funding priorities. This may affect your overall project score.    

You will be competing for funding so the success of your full application will also depend on the number and value of other applications received. Not all applications will be awarded a grant.   

What you will need for your full application    

You will need to provide more details about your project in your full application.    

Use the:    

• same project that you used in your Stage 1: online application    
• project number provided by RPA in your invitation to apply for a full application email    

We know that some minor project details may change since you completed the online application, for example, changes to project costs as they are finalised. However, the main details of your project should not be significantly different to your online application. Significant changes to your full application may lead to your project being rejected.   

Email FTF@rpa.gov.uk before you submit your full application if you need to discuss changes to your online application.    

The full application form is in 2 parts, a Word document and a spreadsheet. You should provide full details about yourself, your business, and your project, including:    

• a breakdown of project costs    
• supplier details    
• key dates and project milestones    
• proposed project outputs    
• financial impact forecast    
• explanation of how the project will be funded    
• you will be asked to show how it will make your business more efficient and improve its productivity    
• details of previous similar grants    
• details of your agricultural inputs and outputs and how this might change as a result of your project   

If your project needs planning permission, you should check with your Local Planning Authority before preparing a full application.  

You will have to submit the approved planning permission documents for your project with your full application. Without these documents, your grant application will be considered ineligible and will be withdrawn.    

You will need to send us supporting information or documents appropriate to your business and the project including:    

• financial accounts for the most recent 3 years of trading    
• latest tax returns, management accounts or a statement of income and expenses from an accountant (if you are a new business or self-employed)    
• financial and production projections    
• relevant permissions and consents including planning permission  
• quotes - 3 references to catalogue listings or formal tenders for each item with a value of £5,000 or more, one quote for any items with a value up to £4,999.99  
• evidence of match funding for the balance of your project costs   
• if you purchase any second-hand items, we need confirmation from the supplier that it has a 5-year life and has not received previous grant funding    
• evidence (letter from Chartered accountant or HMRC) that you are able to include irrecoverable VAT in your project costs, where applicable    
• details and draft agreement between parties where a joint venture is proposed    
• letter(s) of support from any third parties    

How RPA will check your full application   

RPA will check your full application to make sure the project is still eligible for a grant and it’s the same as described in your Stage 1: online application.   

Your project will also be assessed on the following criteria:    

Funding priorities    

RPA will score how well the project meets the funding priorities. These are projects that:    

• improve productivity   
• improve the environment   
• introduce innovation  
• introduce technology to address labour shortage  (Farm Productivity projects)

Shows value for money    

RPA will score how well the project costs represent value for money. This includes the amount of grant needed to deliver the outcomes.   

Financial viability    

Your project will also be assessed to make sure that it is viable.   

RPA will assess:    

• the current financial viability of your business    
• how the project may affect your existing business operations    
• how you will fund the project until the grant is claimed    
• how the business will benefit from the project financially    

Delivery and sustainability    

RPA will assess how you will:    

• meet the project timelines within budget    
• mitigate any risks to project delivery    

Withdrawing an application  

You can withdraw your application at any time by emailing FTF@rpa.gov.uk.   

If you are offered a grant  

RPA aims to give you a decision about your application as soon as possible after receiving a complete full application (within 60 working days).    

If you are offered a grant, RPA will send you a grant funding agreement (GFA) for you to sign and return. This will set out the legal terms and conditions of the grant, including the:    

• amount of the grant    
• outputs we have agreed for your project    

If you need to change anything in the GFA over the course of the project, you must get written agreement from RPA first. Without this, RPA could end your agreement and reclaim any grant already paid.    

You’ll get more information and help with your GFA if you are offered a grant.    

If your application is unsuccessful    

If your application is unsuccessful, RPA will write to you and tell you why. If you’re unhappy with the decision, you must follow RPA’s Complaints procedure on GOV.UK.   

How to claim your grant   

You can make a maximum of 3 claims over the duration of the project. RPA will discuss the staging and timing of claims with you.   

Grants will be paid in arrears. Your final claim must be at least 15% of the total claim amount.   

You can only make a claim for items or work which has been completed and paid for.   

You must not start work, commit to any costs (including paying deposits), enter into any legal contracts, or place an order until your project start date. This date will be in your GFA.   

Incurring project costs before this date may make your application ineligible, as the project could be considered as already started.   

If you buy an item for the project using lease purchase or hire purchase, you need to own it outright before you can claim any grant money towards it.    

If you do not own it outright, you will not be able to include these costs in your claim. This means that you need to pay all the instalments and show that the title has passed to you before you claim the grant.   

Publicising successful grants   

You need to follow any guidance from RPA about acknowledgement and publicity of the grant. This includes using templates or materials, if provided.   

Contact RPA    

Contact the Farming Transformation Fund (FTF) team at RPA if you’re not sure if you are eligible to apply, or if you are not able to access the online checker.    

Email: FTF@rpa.gov.uk    

Telephone: 0300 0200 301 and follow options for the Farming Transformation Fund.    

Post:    

Farming Transformation Fund
Grants Service    
Rural Payments Agency    
Sterling House    
Dix's Field    
Exeter    
EX1 1QA