Applying for the Improving Farm Productivity Grant Round 2

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Improving Farm Productivity grant: Round 2

Now in its second round, the Improving Farm Productivity Grant is a major offering from the Farming Investment Fund. Round 2 of the grant aims to ensure as many businesses as possible have the opportunity to invest in new equipment, especially environmentally-friendly agricultural kit, for the future.

DEFRA has decided to increase the proportion of the costs that the grant will cover from 40% to 50% for robotic and automated equipment, like the range of automated farming AgBot equipment produced by AgXEED.

Reducing environmental impacts is a big part of the scheme, so eligible Farm Productivity equipment using an electric or renewable energy source will be prioritised over fossil fuel-powered equipment.

Learn more about who can apply for the grant and what it’ll cover.

Robotic and automatic machinery and the use of solar equipment 

The Improving Farm Productivity grant is open to farmers and horticultural businesses. It will pay for capital items to improve farm and horticulture productivity through: 

  • the use of robotic and automated equipment and systems to aid crop and livestock production 
  • the installation of solar equipment to increase energy resilience and the take-up of renewable energy generation on a farm (solar photovoltaic (PV) systems)
  • wavelength-specific LED lighting for horticultural crops
  • advanced ventilation control units

The Rural Payments Agency’s Role in Grant Funding

The Rural Payments Agency will prioritise funding for particular projects, so the more your project meets the grant’s funding priorities, the higher your application will score. To meet these criteria, the funding needs to be used on equipment that will:

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

Who are The RPA?

The RPA pay out over £2 billion each year to support the farming and food sector, supporting agricultural and rural communities. The RPA is an executive agency, sponsored by the Department for Environment, Food & Rural Affairs.

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Who can apply for the Improving Farm Productivity grant Round 2?

You can apply for a grant if you’re a farmer or horticulturalist in England. Contractors can also apply if they have a registered business address in England.

Contractors — defined as a business (including a sole trader) — that carry out an agricultural or horticultural activity as a service may also apply for the funding. However, contractors aren’t eligible to apply for solar PV grants.

Who can’t apply for the Improving Farm Productivity grant Round 2?

The following groups are not eligible for the grants:

  • Government departments, executive agencies, non-departmental public bodies (NDPBs) and any public body where the business forms part of their obligations as a public body
  • Members of Producer Organisations under the Fresh Fruit and Vegetables Aid Scheme, if they have funding for the same project through their operational programme
  • Forestry businesses

Improving Farm Productivity grant: Changes from Round 1 to Round 2

For robotic and automated equipment, the minimum grant threshold for round 2 has been decreased to £25,000, from £35,000 for round 1. The maximum grant available remains at £500,000. The grant will cover up to 50% of the cost of eligible items. 

For solar equipment, there’s also a lower threshold (£15,000), allowing as many farms as possible to submit a proposal to enhance their businesses with the latest sustainable technology. The maximum grant is £100,000 and will cover up to 25% of the cost of eligible items. 

You can apply for both automated and robotic equipment and solar equipment, however, your maximum grant amount cannot exceed £500,000 in total for both applications together. 

The grant is part of the Farming Investment Fund.

Applying for a grant.

If you would like to discuss a grant for an autonomous AgXEED tractor please fill out the form opposite and one of our industry experts will be in touch.

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