Explanatory note

This Scheme, which applies to Great Britain and operates from 1st January 1988, makes provision for aid for the diversification of agricultural businesses in the form of grants in respect of expenditure of a capital nature incurred in connection with the establishment or carrying on of ancillary farm businesses (paragraph 8(1)). The works, facilities or transactions eligible for grant, and the types of ancillary farm business in relation to which those works, facilities or transactions may be performed or provided, are set out in the Schedule.

The rate of grant payable generally under the Scheme is twenty-five per cent, and a higher rate of thirty-one and one quarter per cent is available in relation to agricultural businesses carried on by young farmers or young farmers' partnerships (paragraph 9). Grant in relation to the provision of horses and ponies for hire is only available in less-favoured areas (paragraph 5(2)(c)). Less-favoured areas are defined by reference to designated maps which are available for inspection during normal office hours at the addresses specified in the definition of designated maps (paragraph 2(1)). Copies of the maps may also be inspected during normal office hours at any Regional or Divisional Office of the Ministry of Agriculture, Fisheries and Food, at any Divisional Office of the Welsh Office Agriculture Department and at any Area Office of the Department of Agriculture and Fisheries for Scotland.

The classes of person which may benefit from grant are defined (paragraph 3). To benefit from assistance, an applicant must submit a farm diversification plan for approval by the appropriate Minister (paragraph 4). The plan must show that on its completion the ancillary farm business to which it relates will be capable of being carried on as a profit-making enterprise, or that its completion will bring about a lasting improvement in the economic situation of the agricultural business of which the ancillary farm business forms part (paragraph 5(1)).

The Scheme also—