Introduction
The Small Scale Agricultural Aid Scheme (SSAAS) will provide grants to tenants and owner-occupiers of small holdings, living in the Highlands and Islands of Scotland, towards the costs of a range of agricultural operations on their holdings which fall within the definition of an Small to Medium Sized Enterprise (SME).
Small scale agricultural activity exists in areas of Scotland where production and investment costs are traditionally high due to the geographical remoteness of certain areas. Through SSAAS, small holders can carry out individual or collective investments which ensure production costs are reduced through improved stock control and crop protection from damage by deer and other wild animals. SSAAS assists with the provision of facilities for the wintering of livestock and storing winter fodder, which helps contain the cost of production by reducing waste and the resultant need to import additional fodder with its very high associated transport costs. SSAAS also promotes improved grassland management through the establishment of grass swards that are suited to the harsh climate that prevails in the former crofting counties. This further ensures the quality of produce without an associated increase in production and that the traditional mosaic pattern of land use and environmental protection is preserved.
Limitations
Payments made under this scheme will only relate to those primary producers, or non-crofters, that were previously given approval to commence work under the Crofting Counties Agricultural Grants (Scotland) Scheme (CCAGS) payable through the SRDP. Originally the scheme was open to crofters and non crofters but changes to the rules governing eligibility for the scheme require that from 01/04/2011 applicants must be crofters. This scheme is not open to new applications but will allow payment to be made to primary producers who are not registered crofters but were approved under the old scheme to carry out the work agreed and receive aid which respects the aid intensities of article 4 of Commission Regulation (EC) No 1857/2006.
Measures eligible for support
In compliance with article 4 of 1857/2006 Grants approved have been found to demonstrate that the project meets at least one of the following scheme objectives;
• To reduce production costs;
• To improve and redeploy production;
• To improve quality;
• To preserve and improve the natural environment, hygiene conditions and animal welfare Standards.
Principle Categories of Eligible Operations
1. Erection or improvement of agricultural buildings, and shelters for the temporary housing and sheltering of out-wintered livestock;
2. Works associated with agricultural building, including yards, hard standings, dungsteads, slurry stores and silos (excluding grain silos);
3. Investment in land management including the initial grassland improvement works for the restoration of degraded land and the control of bracken;
4. Arterial drainage and field drainage including under drainage, hill drainage and ditching;
Note: Aid paid for drainage or irrigation work will only be eligible where such work will lead to a reduction of previous water use of at least 25%
5. Provision or improvement of facilities for the organised feeding of out-wintered livestock including permanently fixed troughs and feed barriers and associated concrete bases;
6. Provision or improvement of equipment for the handling and treatment of livestock;
7. Planting of shelter belts and provision of fences, hedges, walls, gates or stock-grids;
8. Provision or improvement of amenities including water supplies, mains electricity connection or supply; supply and installation of an electricity generator; and provision of a gas supply;
9. Provision of electrical equipment;
10. Provision or improvement of access tracks to land improvement areas, roads, bridges, culverts or boat slips.
Maximum aid allowed
The maximum grant paid to any individual business active in the primary sector will be up to 50% of eligible investments in less favoured areas and up to 40% of eligible investments in other regions.
Note: The maximum grant payable to an individual undertaking will however be capped at a maximum grant of £25,000.
The maximum grant paid to a grazing committee (or other eligible group) active in the primary sector will be up to 50% of eligible investments in less favoured areas and up to 40% of eligible investments in other regions. The maximum grant payable to a grazing committee or other eligible group will however be capped at a maximum grant of £125,000.
Note: The accepted norm would be that a grazing committee (or other eligible group) would constitute a minimum of four members.
State Aid
The scheme complies with the aid intensities allowed by Commission regulation 1857/2006 on state aid to small and medium sized enterprises active in the production of agricultural products and respects the aid intensities and conditions allowed by article 4 of the regulation for investment in agricultural holdings.
SME Definition
Small and Medium-sized enterprises which employ fewer than 250 persons and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million ( see annex 1 of Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application 87 and 88 of the treaty, OJ L 214, 9.8.2008, p 3).