Scottish Government

Annex 1 - Whole Farm Review Specification

The Pilot Scheme

1. The Scottish Executive intends to launch a new grant-aided service, the Whole Farm Review service, in 2004, along with other aspects of the National Strategy for Farm Business Advice and Skills. However, before finalising the scheme, the Executive wishes to test the scheme's processes, systems and effectiveness by carrying out a 6-month pilot based so far as possible on current proposals for the scheme proper. The pilot will run from 1 October 2003 until 31 March 2004 and farmers/crofters will be able to apply for grant assistance between 1 October and 31 December 2003.

2. To take part in the pilot Scheme, farmers/crofters will have to satisfy the Scheme's eligibility criteria and follow the application procedures. No more than 250 grants will be offered and it is therefore strongly recommended that farmers/crofters apply as soon as possible to avoid disappointment.

The specification

3. This specification describes the service towards which SEERAD is prepared to offer grant assistance under the Whole Farm Review Pilot Scheme. It must form the core of the agreement between the farmer/crofter and the farm business adviser the applicant chooses to deliver the service. Where the service is provided as part of a wider contract, the costs which relate to this service must be separately identified in the invoice to enable the farmer to claim grant to which he might be entitled under the pilot Scheme. Grant will not be paid in respect of any service which does not meet this specification.

The Whole Farm Review

4. The aim of the Whole Farm Review is to assess the current state of the farm business and consider how its performance can be improved. The review is in two parts: the Whole Farm Review itself; and a later review of the Action Plan. The output from the first part will be a report on the business, providing an overview of the whole business and its recent performance, highlighting the main opportunities and threats and proposing options for improving performance, and ending with a prioritised Action Plan setting out the steps to be taken, in particular over the following 12-18 months, to implement the preferred options. The key sections of the report, and where the adviser's skill and expertise will be most valuable, will be the development of options for improving the business's performance and the Action Plan to help the farmer achieve the potential improvements. The Action Plan need not be extensive, but should clearly set out the key steps to be taken to improve performance: this might, for example, include signposting the farmer to sources of additional advice and support, obtaining more specialised advice on specific issues such as environmental management, measures to improve financial management or business operations or arranging training to improve skills in particular areas.

5. The object of the second part is, with the farmer, to review progress on, and revise as necessary, the Action Plan, discuss any problems or outstanding issues and provide further advice as necessary. The adviser and farmer are also required to complete and return to SEERAD (with the farmer's second claim for payment of grant) an Impact Assessment Form, describing the impact of the review on the business. This review of the Action Plan must take place between 2 and 3 months after completion of the first part of the service.

6. The review must look at the whole farm business - that is, it must consider business, environmental and skills aspects when considering performance and future options. The review is carried out in the context of the increasing impact of environmental issues on farm operations, funding and business opportunities. It is becoming more and more important for farmers to take account of environmental issues and opportunities and to build these into their business planning processes and the adviser should be aware of sources of guidance on these issues (e.g. SEPA's NetRegs website; Local Biodiversity Action Plans; Good Farming Practice standards). Skills levels available to the business are also important to improving performance and, for example, making the most of diversification opportunities.

7. The attached table sets out the issues which the review must consider and suggests how the adviser and farmer should work together to get the best value out of the service: these are deliberately stated in 'headline' terms, to provide a large degree of flexibility for the adviser and the farmer to concentrate their efforts on the key areas for improvement in the particular business.

8. As stated above, there are two main parts to the review service: the first part (the Whole Farm Review) is expected to require around 3 days of consultancy support for most farms; and the second part (the Action Plan Review), which should take place between 2 and 3 months after completion of the first part, is expected to require no more than half a day of consultancy support. Within these parameters, it is for the farmer and adviser to decide how best to work together in order to get the best value out of the exercise. For example, the more basic information the farmer can provide at the outset, the more time the adviser will have to concentrate on the value-added tasks of analysing performance, identifying key areas for improvement or further examination and developing practical options for improving performance. Where there is a clear indication that the real need is for an exit strategy, the farmer and adviser may concentrate on exploring and developing this option.

9. A farmer may, if he wishes, contract with the adviser to provide extended or additional services, although grant under the pilot Scheme will only be paid towards the service as described in this document and only up to the prescribed rates and amounts. Various forms are provided in the Scheme pack (accompanying the approval letter) for the skills check and for feedback and progress reports.

10. The adviser may engage other specialist advisers to bring a broader range of knowledge and skills to the review (for example, to advise on environmental issues) but must remain the principal contractor to the farmer and must be responsible for managing the process and effectively integrating the additional advice.

11. The adviser should be able to refer the farmer to other sources of advice and assistance where appropriate, such as the Scottish Executive local agricultural offices, the Enterprise Networks, environmental bodies and industry organisations. This requires knowledge of these organisations and the services they offer as well as the ability to recognise when their services might be relevant to a particular farm business.

Grant assistance

12. Grant aid under the pilot Scheme is available to up to 250 farming/crofting businesses towards the cost of this service. To qualify for grant aid, the farmer must first apply to SEERAD and receive a formal offer of grant letter from SEERAD before entering into a contract with an adviser. Grant payments will be based on actual costs (up to the maximum amounts) and paid in arrears (i.e. after the farmer has paid the adviser). Since this is a pilot Scheme, the rates of grant are higher than currently proposed for the scheme proper due to be launched in 2004.

13. Grant will be paid to the farmer in two instalments (subject to receipt of valid claims, including evidence that the services have been provided and paid for). The first instalment covers the Whole Farm Review itself and the second instalment covers the later Action Plan Review. Grant rates are as follows:

• Instalment 1: 90% of net cost of the service, up to a maximum of £1,350.
• Instalment 2: 100% of the net cost of the service, up to a maximum of £250.

14. In addition, the farmer may apply separately for a further grant of up to £500 towards the cost of training or further, more specialised advice (which is not covered by other grants or subsidies) to implement any of the actions developed following the Whole Farm Review.

Forms

15. The Scheme pack includes a number of forms relating to the pilot Scheme. As well as grant claim forms and a feedback form for the farmer to complete, the pack includes the following forms of which the adviser should be particularly aware:

• A Development Plan and Labour Market Information questionnaire ( WFR 10 (pilot)) is provided which must be completed as part of the Whole Farm Review.
• A Farm Information Data Gathering form ( WFR 8 (pilot)), which advisers may use to collect basic information from the farmer.
• An Impact Assessment form ( WFR 7 (pilot)), for the farmer and adviser to complete as part of the review of the Action Plan.

Whole Farm Review Specification: issues to be considered