National Strategy for Farm Business Advice and Skills: Whole Farm Review Pilot Scheme Explanatory Booklet

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Section A - Introduction

1. Welcome to the Whole Farm Review Pilot Scheme. This Scheme offers you an opportunity to take a fresh look at your business, with the help of a professional adviser. The adviser (selected by you) will provide a detailed breakdown of where your business currently stands, what are its main strengths, weaknesses, opportunities and threats and develop an action plan to improve your business performance. The adviser will look at your whole business and help you to make the most of all your assets - business, environmental and skills.

2. Participation in the Scheme will provide you with up to £2,250 worth of professional advice. As it is a pilot scheme, the Scottish Executive will fund a very high proportion - up to £2,100 - of this cost. To be included in this Pilot Scheme you must apply before 31 December 2003 and receive SEERAD approval before entering into a contract with your chosen adviser. We are only accepting up to 250 applications, so the sooner you apply, the better chance you have of being accepted into the Scheme.

Whole Farm Review Pilot Scheme

3. Following the publication of the National Strategy for Farm Business Advice and Skills (February 2003), the Scottish Executive Environment and Rural Affairs Department (SEERAD) intends to launch a new farm business advice service by the summer of 2004. Before launching the new service, we are carrying out an extensive pilot of the key support scheme, the Whole Farm Review.

4. This booklet provides background information, guidance and scheme rules for the Whole Farm Review Pilot Scheme (referred to from now on as the 'Scheme'). It provides information about the Scheme, what it aims to achieve, who is eligible to take part and how to apply. The service available under the Scheme is accessed through the Enterprise Network gateways ( see Annex 2 at the back of this booklet), delivered by a farm business adviser of your choice and grant-aided by SEERAD.

PLEASE TAKE TIME TO READ THIS BOOKLET BEFORE REACHING A DECISION ON WHETHER OR NOT TO APPLY FOR GRANT ASSISTANCE UNDER THIS PILOT SCHEME.

5. This booklet is correct at the time of going to print. You should note that the information supplied in the booklet is not exhaustive and should only be taken as a guide to the Scheme. As this is a pilot exercise, SEERAD may find it necessary to introduce amendments to scheme rules and procedures (e.g. to close the Scheme early if there is an over supply of applications).

Aims and objectives

6. The overall aim of the new service is to help farmers and crofters to develop financially viable and environmentally sustainable businesses. Among other things, it will offer grants to farming and crofting businesses to help them obtain whole farm business advice (the Whole Farm Review) aimed at improving business and environmental performance. Although you are not obliged to act on the recommendations contained within the review, it is hoped that the review will highlight the opportunities for improving performance that are available to your business and that it will provide a firm basis for you to consider the future development of your business.

7. Before we formally launch the new advice service next year, we want to ensure that it provides farmers with the advice they need and that the administrative systems and processes work well, by testing it in real world conditions. We have therefore set up this Scheme, under which the proposed service, along with significant grant assistance, is available to farmers who are keen to improve their business performance. The Scheme will only be open to applications from 1 October and up to and including 31 December 2003 with the follow-up service being delivered over a period of up to 7 months (to allow farmers to fit it into their work schedules). A maximum of 250 grants will be awarded under the Scheme so, if you decide that you wish to join the Scheme, you should submit your application as early as possible (and in any event before 31 December 2003) to SEERAD, Farm Business Advice and Skills Branch in Pentland House ( see Annex 2 at back of this booklet).

Section B - Eligibility and Scheme Rules and Conditions

Eligibility of farmer or crofter

8. Any farmer or crofter based in Scotland who is registered in Scotland with IACS, SAPS or SCPS or who is using a current milk quota is eligible to apply for Whole Farm Review grant assistance under this Scheme. Only one grant-aided Whole Farm Review per farm/croft business is allowed. Grants will be offered to eligible businesses that apply from 1 October and before the closing date of 31 December 2003, broadly speaking on a first-come first-served basis, although that is subject to achieving a representative sample, both geographically and across the various farming sectors.

Grant rates

9. SEERAD will pay up to £1,600 towards the cost of the adviser who delivers the service. Grant will be paid on receipt of valid claim forms in two instalments, to reflect the two parts of the service (the Whole Farm Review itself and the later Action Plan Review), as follows:

  • 1st instalment - 90% of the cost* of carrying out the Whole Farm Review, up to a maximum of £1,350.
  • 2nd instalment - 100% of the cost* of the Action Plan Review, up to a maximum of £250.

10. In addition to the two payments mentioned above, you may also apply separately (using form WFR 11 (pilot)) for a 3rd and further grant of up to £500 towards the cost* of training or more specialised advice to implement any of the recommendations in the Action Plan agreed during the development of the Whole Farm Review (see paragraphs 12 and 13 below).

* Excluding VAT, except for businesses which are not registered for VAT and will not reclaim the VAT from HM Customs & Excise, in which case grant will be based on the total cost inclusive of VAT.

The Whole Farm Review

11. The Whole Farm Review has four main elements:

  • an overview of your whole business, including your objectives, financial performance, environmental performance and skills needs;
  • an analysis of the key threats and opportunities facing the business;
  • an Action Plan setting out practical measures to improve the business's financial and environmental performance; and
  • a review of the Action Plan after 2-3 months.

Additional grant assistance

12. In addition to the grant of up to £1,600 towards the cost of the Whole Farm Review service, you may also apply (separately, using form WFR 11 (pilot)) for a grant of up to £500 towards the cost* of training or more specialised advice needed to implement any of the recommendations in the Action Plan developed during the Whole Farm Review. This additional assistance is only available to farm businesses that have completed a Whole Farm Review and each such business is entitled to only one offer of additional grant assistance under this Scheme.

13. Grant will be paid only towards training or more specialised advice for which financial support is not available from any other source or under any other grant scheme. Grant will be offered on the basis of a quotation or estimate from the provider detailing the service and the total cost. Grant will be paid on the basis of a receipted invoice detailing the service provided and the cost to the farmer. If you wish to apply for this additional grant, you must submit your application to SEERAD within 6 months of the date of the Whole Farm Review grant offer letter. If grant is offered, you will have a further 6 months to complete the training or obtain the advice and to submit your grant claim form.

The role of the adviser and your responsibility

14. The review must be completed by an independent, professional adviser with no direct connections to the business under review, either as a partner, or a director or shareholder of a limited company, or as a close family member of a sole trader or any of the foregoing. The adviser will carry out the whole farm review and, 2 to 3 months later, the review of the Action Plan. It is up to you to select your adviser and agree a price for delivering the service. It is recommended that your chosen adviser has at least 2 years' practical experience of providing farm business advice.

15. Your adviser may, with your agreement, engage another adviser or advisers to help with aspects of the service (e.g. to provide specialist knowledge of environmental issues), but your contract will be with your main chosen adviser who must be responsible for delivering the service as a whole and for incorporating advice from other sources into the Whole Farm Review and Action Plan.

16. It is up to you and your adviser to agree on how best to work together but, to get the most out of the service, it is essential that you are fully involved in the review process and that you provide all the information needed to give a full picture of your business, your resources and the skills available to you. This will allow the adviser to develop a clear understanding of your business, opportunities and constraints and to formulate practical options for improving your performance and achieving your objectives.

17. For most farms, this service is estimated to involve up to 3 to 4 days' advisory support, depending on the size and complexity of the business, plus the time and effort that you put in to provide information and discuss issues and options with the adviser. A detailed Whole Farm Review Specification (see Annex 1 at the back of this booklet), sets out the areas and issues that must be considered. You will need to draw the specification to the attention of your adviser when agreeing a contract. This Specification must form the core of your contract with the adviser.

18. As Scheme participant you have a number of obligations to SEERAD in return for the grant assistance. Your main obligations are as follows:

  • Both parts of the service (the Whole Farm Review and the later Action Plan Review) must be completed.
  • You will have to follow the instructions set out in this explanatory booklet and in the grant offer letter and claim forms.
  • You will have to send a copy of the Whole Farm Review to SEERAD with your first grant claim.
  • You will have to complete a Labour Market Information questionnaire and a Skills Development Plan.
  • You will have to provide feedback on the service.

Confidentiality of information obtained

19. SEERAD will not use the information contained within the review report and accompanying documentation for purposes out with the administration of the new service. However, SEERAD will receive a copy of the Whole Farm Review report so that we can monitor the operation and effectiveness of the pilot service. The report will not be used for any other purpose by the Scottish Executive or released to any other organisation without your express permission.

20. To ensure that details of your business remain confidential, only anonymised statistical information on the Scheme will be included in any report prepared by SEERAD. (Under the Scheme, you are asked to provide some labour market information and information about training needs which will be passed to Lantra to help them ensure that farmers' future training needs will be provided for.)

Section C - The Application Process

21. An application form (WFR 2 (pilot)) accompanies this booklet. If you wish to participate in the Scheme, you should complete the application form and send it as soon as possible (and certainly not later than 31 December 2003) direct to the Farm Business Advice and Skills Branch, SEERAD. ( See Annex 2 at the back of this booklet for address details). If you do not receive any notification from SEERAD within 10 working days from posting the application form, you should advise SEERAD via the Pentland House contact address.

22. If your application is successful, you will receive, within 10 working days, a formal offer of grant letter and a 'Declaration and Acceptance of Grant Offer'. If you wish to accept the offer, you must return the letter and signed declaration to SEERAD within 21 days of the date of the offer letter. If you fail to meet this obligation, your application will be regarded as invalid. To ensure that you receive all the forms associated with the Scheme, we will enclose a 'Scheme Pack' with the offer letter. The pack will contain a number of forms (including your grant claim forms). As some of the forms will be used by your adviser, please make sure that he or she is aware of the Pack and that you discuss its contents together.

23. If your application is unsuccessful, you will also be notified by letter and giving the reasons why your application has not been approved.

Section D - The Grant Process

24. Grant assistance towards the cost of the pilot Scheme will be available direct from SEERAD in Pentland House. (Applicants should note that grant payments for this Scheme are not being administered through your local SEERAD Area Office.)

Claiming grant

25. Grant is payable in two instalments, as detailed at paragraph 9 above.

  • The first instalment can be claimed after the Whole Farm Review has been completed ( WFR 4 (pilot)).
  • The second instalment can be claimed after the Action Plan Review (between 2 and 3 months after completion of the Whole Farm Review) ( WFR 5 (pilot)).

Payment of grant will be based on actual evidenced expenditure, at the rates and up to the limits set out above.

26. To claim the first instalment (the Whole Farm Review), you will have to complete claim form WFR 4 (pilot) and send it to SEERAD, Pentland House along with a receipted invoice showing the amount that you paid your adviser. With this claim form, you must also enclose the following:

  • Customer Feedback ( WFR 6 (pilot));
  • a copy of the Whole Farm Review Report;
  • Development Plan and Labour Market Information questionnaire ( WFR 10 (pilot)) .

27. To claim the second instalment (the Action Plan Review), you will have to complete claim form WFR 5 (pilot) and send it to SEERAD, Pentland House along with a receipted invoice showing the amount that you paid your adviser. With this claim form, you must also enclose the following:

  • Impact Assessment ( WFR 7 (pilot));
  • and (if appropriate) a copy of the revised Whole Farm Action Plan.

28. A third payment may also be available in the form of an additional grant towards the cost of additional advice or training needed to implement any part of the Action Plan. To be eligible for this grant, you must apply separately using application form ( WFR 11 (pilot)) and if approval is granted, a claim form ( WFR 12 (pilot)) will be enclosed with the approval letter.

Section E - Some Questions Answered

Why should I get involved?

This is an opportunity to take a fresh look at your business, with the help of a professional adviser. The adviser (selected by you) will provide a detailed breakdown of where your business currently stands, what are its main strengths, weaknesses, opportunities and threats and develop an action plan to improve your business performance. The adviser will look at your whole business and help you to make the most of all your assets - business, environmental and skills.

What will it cost me?

Very little in financial terms. As a pilot project, the Scottish Executive is funding a very high proportion of the cost of the Whole Farm Review - over 90% of the cost, up to a maximum of £1,600. You pay your adviser and then claim back most of the cost from SEERAD. But you will need to spend time providing information and discussing your business with your adviser.

How long should the review take?

In terms of the adviser's time, the Review itself should take up to around 3 days for most farms and the later review of the Action Plan should take no more that half a day. But the adviser's ability to carry out an effective review depends on your willingness to take the time needed to provide information, discuss your business with your adviser and consider the suggestions and recommendations of your adviser. Both your and your adviser's contributions are likely to take place over several days or weeks (to allow time for consideration and to fit in with your normal work schedules), but the Review must be completed within 3 months of the date of the grant offer letter.

Will the information I provide about my business be used for any other purpose?

SEERAD will receive a copy of the report so that we can monitor the operation and effectiveness of the service. The report will not be used for any other purpose by the Scottish Executive or released to any other organisation without your express permission. Only anonymised statistical information will be included in any report on the pilot scheme prepared by SEERAD, to ensure that details of your business remain confidential. (Under the Scheme, you are asked to provide some labour market information and information about training needs, which will be passed to Lantra to help them ensure that future training provision meets the needs of farmers.)

How do I apply for a Whole Farm Review grant?

You can apply by completing application form WFR 2 (pilot) and returning it to SEERAD. But you must apply before 31 December 2003 - and you are advised to apply as soon as possible, since only up to 250 applications will be successful.

Who can apply for the Whole Farm Review grant?

Any farming or crofting business based in Scotland that is registered with IACS, SAPS or SCPS or who is using a current milk quota is eligible to apply for grant assistance towards a Whole Farm Review. Applications will be decided on a 'first-come first-served' basis up to the limit of the available budget, subject to SEERAD achieving an acceptable spread of farming sectors and geographical area to fully test the pilot scheme. Each business is entitled to only one grant-aided whole farm review.

What if I want the adviser to do more?

You may contract with your adviser to provide more extensive or detailed advice, but you can only claim grant support from SEERAD in respect of the Whole Farm Review and up to the stated maximum grant rates/amounts (see paragraph 9).

What is the role of the Business Gateway/Local Enterprise Company?

The Business Gateway and the Local Enterprise Companies (LECs) provide the gateway to the new service. They can provide basic information about the Scheme and supply you with the necessary application form. The Business Gateway/LECs may also be able to offer you a range of business improvement services and help you to access more specialised business advice - for example on marketing, exporting and starting up a new venture.

How do I select an adviser?

You may select any farm business adviser. They should have at least 2 years' experience of providing farm business advice. It is for you to select and contact your preferred adviser and agree the price for delivering the Whole Farm Review (which must be based on the specification at Annex 1). This specification must form the core of your contract. A copy must be given to the adviser to ensure they fully understand the minimum service they must provide to you (the Scheme Pack which will accompany your grant offer letter will contain another copy of the Explanatory Booklet, for you to give to your selected adviser).

How do I get the most out of the Whole Farm Review service?

You should be prepared to work with your adviser and to discuss your business performance and objectives openly and honestly. The more information you can provide to the adviser at the outset, the more time the adviser will have to analyse that information and concentrate on developing options for improving your business performance. The more open you are with your adviser, the more he or she will be able to develop an action plan that reflects your personal and business objectives.

What are my obligations to SEERAD?

In return for grant assistance, you will have to send SEERAD a copy of various documents, most of which will be provided by your adviser. You will also have to provide feedback on the service and its impact on your business (see paragraph 18).

What are the key dates I have to meet with my adviser?

  • A signed offer of grant letter must be returned to SEERAD within 21 days of the date of the offer letter.
  • The Whole Farm Review must be completed within 3 months of the date of the offer letter.
  • The claim for grant for the Whole Farm Review must be sent to SEERAD not more than 1 month after the completion of the Whole Farm Review and in any case not later than 4 months after the date of the offer letter.
  • The Action Plan Review must be carried out between 2 and 3 months after completion of the Whole Farm Review.
  • The claim for grant for the Action Plan Review must be submitted not more than 1 month after completion of the Action Plan Review and in any case not later than 7 months after the date of the offer letter.
  • The application for additional support must be submitted to SEERAD within 6 months of completion of the Whole Farm Review.

What other sources of advice are available to me?

There are numerous organisations offering a wide range of advisory services to farm businesses. Some of these are free and some are subsidised while others are fully commercial. Your adviser or your Business Gateway/LEC contact should be able to put you in touch with the right organisation for the type of advice you want. Your local SEERAD Area Office will also be able to give you more information about grants and other services available through SEERAD.

Section F - Complaints Procedure

What procedures should I follow if I wish to make a complaint?

If you have a complaint about the service provided, you should, in the first instance, write, setting out the facts as fully as possible, to the Head of Farm Business Restructuring Division, who will arrange for the matter to be investigated and reply within a reasonable time-frame. The contact address for the Head of Division is as follows:

Alastair Sim
Head of Farm Business Restructuring Division,
Room 1.13
SEERAD
Pentland House
47 Robb's Loan
Edinburgh
EH14 1TY

Page updated: Monday, July 24, 2006