Explanatory note

This instrument amends the Farm Business Development (Scotland) Scheme 2001 (“the Scheme”) which enables the payment of financial assistance for measures which are listed in the Schedule to the Scheme for that part of Scotland outwith the Highlands and Islands area.

Paragraph 2(2) inserts a new objective into paragraph 3 of the Scheme, being measures relating to re structuring of an eligible business or re-orientation of its agricultural production. Paragraph 2(7) inserts a corresponding set of new measures eligible for financial assistance under the Scheme in the form of new Part III to the Schedule to the Scheme.

New paragraph 3A of the Scheme allows the Scottish Ministers to require an eligible person who wishes to benefit from financial assistance for measures under new Part III of the Schedule to the Scheme to prepare a business plan for the agricultural business for their approval (paragraph 2(3)).

The particular matters in respect of which the Scottish Ministers must satisfy themselves in respect of applications for measures under Part I of the Schedule to the Scheme are applied to applications for measures under new Part III of the Schedule to the Scheme (paragraph 2(5)).

The limits on the amount of financial assistance payable in respect of any measure under Part I of the Scheme are applied to measures under new Part III of the Schedule to the Scheme (paragraph 2(6)(a)).

The total amount of financial assistance payable to one or more eligible person in respect of one eligible business is increased by £5,000 to £25,000 (paragraph 2(6)(b)). In respect of an application for financial assistance in relation to a collaborative venture the total amount of financial assistance payable in respect of each eligible business is increased by £5,000 to £35,000 (paragraph 2(6)(c)).