The FTF (Farming Investment Fund) scheme for water was launched on 16 November 2021 for round 1, while round 2 was launched on 19 April 2023. Both these rounds are now closed for new applications and successful applicants are working through the requirements of the scheme.
The full application deadline for successful applicants of Round 2 was 23:59 on 31 October 2024.
Information for Round 2 applicants
This round of the grant scheme was open to arable and horticultural businesses that are either already growing, or intending to grow, either irrigated food crops, ornamentals or forestry nurseries.
You could apply for grants for capital items to improve farm productivity through more efficient use of water for irrigation, securing water supplies for crop irrigation by constructing on-farm reservoirs that will store abstracted water or harvested rainwater, and the use of best practice irrigation equipment.
Assets purchased under this scheme must remain in England, and mobile assets must be secured in England when not in use. Static assets can only be installed on land owned by the applicant business or on tenant land so long as the applicant has an agreement until at least five years after the project is completed.
There were restrictions on who can apply. The following could not apply for support under this screen public organizations, including Crown bodies and non-departmental public bodies (NDPBs), and members of Producer Organisations under the Fresh Fruit and Vegetables Aid Scheme if they have funding for the same project through their operational program, and businesses which will not use any of the water stored to grow and irrigate their own crops.
What could Round 2 pay for?
Eligible equipment includes introducing more efficient water application (for example, by changing from rain gun application to trickle or boom application), securing water supply for crop irrigation that enables water use in a more sustainable way (for example, constructing a reservoir and moving away from summer abstraction to rainwater harvesting or peak flow/winter abstraction), improving business resilience and prosperity (for example, using new irrigation systems and newly irrigated areas to increase productivity or introduce high-value crops and/or moving away from fossil fuel powered equipment), and encouraging collaboration for water storage and irrigation of crops (for example, supplying water to neighboring farmers).
The grant follows a similar two-stage application process as Round 1. However, the major distinction for Round 2 applicants was to submit approved planning permission and abstraction licenses for their project if they were invited to apply after the initial application stage.
Applicants should be aware that the Environment Agency is continuing to review abstraction licenses to ensure abstraction is sustainable.
The minimum grant value is £35,000 and the maximum is £500,000 per applicant business per round of funding. Grant funding can only contribute to 40% of the eligible costs, 60% must come from private funding sources. You cannot combine multiple sources of public funding, such as local authority funding.
Work cannot begin until you have a grant funding agreement (GFA). You must also reach your project start date before engaging in starting work or committing to any costs (this includes paying deposits), entering into any legal contracts, and placing any orders with suppliers.
Any project costs incurred prior to this may render the entire application ineligible. Grants will be paid in arrears in up to three installments, depending on how often you claim.
Claims can only be submitted after the work has been completed and paid for. Claims for items on a lease purchase or hire purchase can only be claimed once it is owned outright by the claimant. This can be done by showing the RPA that you have paid off all the installments and that the title has passed over to you.
Source: NFU Online