Award of RESAS/009/23 - capital grants schemes evaluation

Introduction1. The Scottish Government (SG), on behalf of the Scottish Ministers, wishes to contract an evaluation of the capital grant schemes of the Scottish Rural Development Programme (SRDP).2. The three capital grant schemes to be evaluated are the New Entrants Capital Grant Scheme, the Small Farms Grant Scheme, and the Crofting Agricultural Grant Scheme.3. This specification sets out the aims of the project and the tasks required of the contractor. It also sets out the management arrangements and timescales.Background & Context4. The three capital grant schemes were part of the SRDP 2014-2020. The regulatory base is Article 17 (Investments in physical assets) of Regulation (EU) No 1305/2013 of the European Parliament and of the Council on support for rural development by the European Agricultural Fund for Rural Development (EAFRD). The relevant EU measure is Measure 4.5. These schemes were intended to address European Commission Focus Area: Improving the economic performance of all farms and facilitating farm restructuring and modernisation, notably with a view to increase market participation and orientation as well as agricultural diversification6. The New Entrants Capital Grant and Small Farms Grant Schemes were designed to aid and develop agricultural production on small or recently established agricultural businesses – sustaining the economic basis of farming and helping retain people in rural communities.7. Funding was to support eligible applicants in carrying out individual or collective investments that reduce production costs, such as the construction or improvement of agricultural buildings.8. New entrant farmers or crofters who had set up, as head of holding for the first time, no more than five years before the application for support were eligible for the New Entrants Capital Grant Scheme.9. Holdings of between 3 and 30 hectares of eligible agricultural area (as defined in article 4(1)(e) of Regulation (EU) No 1307/2013 were eligible for the Small Farms Grant Scheme.10. The New Entrants Capital Grant Scheme closed for new applicants on 31 August 2018, having approved 826 applications and provided funding of £12.4m over the period 2015-2018.11. The Small Farms Grant Scheme closed for new applicants on 1 December 2022, having approved 172 applications and provided funding of more than £1.3m over the period 2015-2022.12. The Crofting Agricultural Grants Scheme (CAGS) provides grants to tenant and owner-occupier crofters towards the costs of a range of agricultural operations. The scheme is designed to aid and develop agricultural production on crofting businesses, thereby sustaining the economic basis of crofting, and helping retain people in rural and island communities.13. Funding supports a range of capital projects, such as the construction or improvement of agricultural buildings and shelters, works associated with agricultural buildings including yards, hard-standings and silos, investment in land management, fencing, and the provision or improvement of equipment for the handling and treatment of livestock. It also has the provision to support the establishment of common grazings committees, who are responsible for managing and maintaining common grazing.14. The Crofting Agricultural Grant Scheme remains open and has approved over £25m in grant funding since 2015 to over 4,000 crofters.