To ask the Minister of Agriculture, Environment and Rural Affairs to detail (i) any active and proposed schemes designed to encourage and assist business diversification among meat and dairy farmers; and (ii) any conversations he has had with farmers and other sectors in relation to this issue.

There are two types of farm diversification for which my Department has brought forward investment support:

Diversification into a different farming activity

Diversification into a non-farming activity

Diversification into a different farming activity

The Farm Business Improvement Scheme – Capital (FBIS-C) under the Northern Ireland Rural Development Programme 2014-2020 (NIRDP) is aimed at improving the competitiveness and sustainability of the farming industry. The scheme has two separate tiers: Tier 1 is designed to support small scale investments that will improve the sustainability of farm businesses through the purchase of equipment and machinery, costing from £5,000 to £30,000, from a list of eligible items.

Tier 2 is designed to support larger investments that will enable transformational change in farm businesses across all sectors, which may include diversification into a different farming activity, through projects costing over £30,000 (subject to an overall grant limit of £250,000).

While the FBIS-Capital scheme is currently closed for applications, I am considering what further capital support can be provided under both tiers of the scheme, and within the Future Agricultural Policy Framework for Northern Ireland, which will be launched in the coming months.

Financial support may be available for farm diversification projects from the Agri-Food Co-operation Scheme, also part of the NIRDP, where a farmer would be considering working with others to progress a project. The Agri-Food Co-operation Scheme can provide up to £30,500 of funding along with 50 facilitation days to assist groups of farmers and food producers to progress a new project collaboratively.

Eligible support measures as part of this scheme include Specialist Mentoring, Training, Business Tools, Study Tours and Co-operation Support. The scheme is delivered on behalf of DAERA by Countryside Services Ltd; further details are available on the Countryside Service Ltd website at www.countrysideservices.com/agri-food-co-operation-scheme/

Diversification into a non-farming activity

The LEADER priority (six) of the NIRDP made investment support available under the Rural Business Investment scheme to assist all rural businesses, including farms, to diversify into a non-farming activity. This scheme is delivered by Local Action Groups (LAGs) across the council areas in Northern Ireland. All LAGs fully allocated their funding in order to deliver projects by 2020.

I have not had any specific conversations with farmers and other sectors in relation to diversification. However, I am aware of the interest in, and benefits which can arise from, business diversification.