Written by: Ernie Richards, Advisory Service Officer for Wales at CXCS
The first funding opportunity under the Sustainable Farming Scheme (SFS) Optional Layer is now open, giving Welsh farmers the chance to apply for Capital: Production & Efficiency grants. This marks the first capital funding opportunity to become available under the Optional Layer, giving farm businesses the opportunity to invest in equipment that can improve productivity and efficiency while supporting the wider objectives of the Sustainable Farming Scheme.
The Optional Layer is designed to build on the Universal Layer of the Sustainable Farming Scheme by providing additional funding opportunities for farmers who want to go further. While the Universal Layer focuses on actions that all participating farm businesses are expected to complete, the Optional Layer offers funding for projects that can improve farm performance while delivering wider environmental benefits. Capital: Production & Efficiency is the first Optional Layer funding opportunity to open, with further categories expected to follow.
The scheme offers up to 40% funding towards a wide range of eligible capital items, with grants available from £500 to £15,000 per business, per financial year. Applications are made through RPW Online and can be submitted throughout the year, with businesses able to make more than one application, provided they do not exceed the annual funding limit.
Funding is available across a broad range of investments, including livestock handling and animal health equipment, precision farming technology, slurry management, grain storage and monitoring, digital farm management systems, water management and many other capital improvements designed to improve productivity and efficiency. With more than 100 eligible capital items available, it’s worth taking the time to identify the investments that will deliver the greatest benefit for your farm business.
Unlike some previous capital grant schemes, each eligible item has a predefined technical specification, fixed grant value and item score. Applications are assessed against these criteria rather than the purchase price of the equipment, making it important to understand the scheme requirements before deciding which investments are right for your business. Taking the time to review the guidance and select the most appropriate items could help strengthen your application.
Whether you’re looking to improve livestock handling, invest in precision farming technology or upgrade existing infrastructure, the Capital: Production & Efficiency scheme provides an opportunity to invest in equipment that could benefit your farm for years to come. Planning your application carefully from the outset can help you make the most of the funding available.
You can read the full Welsh Government guidance here: SFS Optional: Capital Production & Efficiency technical guidance
Support & advice
Capital: Production & Efficiency funding could provide a valuable opportunity to invest in equipment that improves the efficiency and resilience of your farm business. However, understanding the eligibility criteria, selecting the most appropriate items and preparing a strong application are all important parts of the process.
If you would like us to review how the scheme could benefit your farm business or discuss making an application, please get in touch on 01981 590514 or email info@cxcs.co.uk to speak to our Stewardship & Grants team.
You can also find out more about our Stewardship & Grants service on our website.
As further SFS Optional Layer funding opportunities become available, we’ll continue to keep you updated with the latest developments and guidance.