Guidance

How to apply for an Adding Value grant

Updated 19 February 2024

Applies to England

The Adding Value (AV) grant is a competitive scheme, and you will not automatically get a grant.

You must receive a funding agreement offering you an AV grant before you:

• start work
• commit to any costs (including paying deposits)
• enter into any legal contracts
• place an order

Any costs you incur before that date are at your own risk, and may make your whole project ineligible if it is considered to have been started.

The application process is a 2-stage process.

Stage 1: check you’re eligible

The online checker closed at 11.59pm on 21 July 2022.

Stage 2: make a full application

RPA will invite you to make a full application and send you an application form if your Stage 1 online application scores highly enough.

You will need to complete a full application form and send this with your supporting documents to RPA. You should email your completed application form to RPA: ftf@rpa.gov.uk.

You must email your application and all supporting documents before 11.59pm on 31 January 2024.

RPA will assess value for money alongside the funding priorities. This may affect your overall project score.

You will be competing for funding so the success of your full application will also depend on the number and value of other applications received. You will not automatically get a grant.

What you’ll need for your full application

You will need to provide more details about your project in your full application. Use the:

• same project that you used in your Stage 1: online application
• project number provided by RPA in your invitation to apply for a full application email

We know that some minor project details may change since the online application was completed, for example, changes to project costs as they are finalised. However, the main details of your project should not be significantly different to your online application.

You should contact RPA by email ftf@rpa.gov.uk before you submit your full application if you need to discuss significant changes to your online application.

What information you need to provide

The full application is in 2 parts: a Word form and a spreadsheet.

You’ll need to provide:

• information about you, your business and project
• a breakdown of project costs
• supplier details
• project milestones
• proposed throughput volumes and outputs for the project
• financial impact forecast
• an explanation of how the project will be funded
• details of how the project will add value to agricultural products
• details of previous similar grants to your business
• evidence of market opportunity for your project including demand for the products and impact on competitors of your project

Planning permission requirements

You must submit a copy of the planning permission approval for your project with your full application.

Other supporting documents

You will need to provide the following supporting documents, if relevant to your project:

• a copy of a signed and dated tenancy agreement with the owner(s) of the land or buildings at the project location - if the applicant business does not own them
• financial accounts for the most recent 3 years of trading
• latest tax returns, management accounts or a statement of income and expenses from an accountant (if you are a new business or self-employed)
• financial and production projections
• relevant permissions and consents - in addition to planning permission
• 3 quotes, references to catalogue listings or formal tenders for each item valued at £5,000 or more
• 1 quote for any item valued up to £4,999.99
• evidence of project funding
• confirmation from the supplier of any second-hand item that it is expected to last for at least 5 years, is fit for purpose and has not received previous grant funding
• details and draft agreement between parties where a joint venture is proposed
• evidence where you are eligible to, and intend to, include irrecoverable VAT in your project costs (such as a letter from a Chartered Accountant or HMRC)
• evidence of market demand including letters of support from third parties, or forward orders from potential customers

Volume of agricultural products processed

RPA will monitor the volume of eligible agricultural products that are processed as a result of the AV grant. You’ll be asked to tell us about your current (baseline) and future (post-project) processing volumes.

How your application is assessed

RPA will make sure the project is still eligible for a grant at the full application stage. RPA will assess your application based on the following criteria.

Funding priorities

RPA will score how well the project meets the funding priorities. These are projects that:

• increase or improve processing
• grow your business
• process products for the first time
• shorten supply chains
• encourage collaboration and partnerships
• improve the environment

You will have a stronger application the more you meet the grant’s funding priorities.

Value for money

RPA will score how well the project costs represent value for money. This includes the amount of grant required to deliver the following outputs:

• benefits to businesses
• adopting new production techniques or processes
• creating new added value products
• additional turnover

Need and demand

Your application needs to provide an analysis of the:

• business need for the project
• market and potential customer demand

You should provide evidence to show your market research and support your conclusions.

Competition

You will need to provide an analysis of the potential competition of your project and evidence of your research, identifying local, regional, national or online competitors. This will help support your conclusions on demand and identify any displacement risks.

Environmental benefits

Tell us about any environmental benefits of the project, such as:

• using energy efficient machinery or equipment
• using renewable energy sources
• reducing food waste
• efficiencies in water use
• managing non-food waste
• using sustainable packaging, e.g. reducing or removing single-use plastics
• reducing harmful emissions or pollutants
• contributing to ‘Net Zero’ carbon targets

You will need to provide annual monitoring of any environmental benefits you declare in your full application, measuring progress against your project starting baseline.

Financial viability

Your project will be assessed to make sure that it is viable. RPA will assess:

• the current financial viability of your business
• how the project may impact on your existing business operations
• how you will fund the project until the grant is claimed
• how the business will benefit from the project financially

Delivery and sustainability

RPA will assess how you’ll:

• meet the project deadline
• mitigate any risks to project delivery

When you’ll find out if you’re successful

RPA aims to give you a decision on your application within 60 working days from receipt of a complete full application.

If you are offered a grant, RPA will send a grant funding agreement (GFA) for you to sign and return. This will set out the legal terms and conditions of the grant, including the:

• amount of the grant
• outputs we have agreed for your project

If you need to change anything in the GFA over the course of the project, you must get written agreement from RPA first. If you do not, RPA could end your agreement and reclaim any grant we have already paid. You’ll get more information and help with this if you are offered a grant.

If your application is unsuccessful

If your application is unsuccessful, RPA will write to you to tell you why. If you’re unhappy with the decision, you can complain or appeal to RPA in writing, by email or by telephone.

Contact RPA

Contact the Farming Transformation Fund (FTF) team at RPA if you’re not sure if you are eligible to apply, or if you are not able to access the online checker.

Email: FTF@rpa.gov.uk

Telephone: 0300 0200 301 and follow options for the Farming Transformation Fund scheme.

Farming Transformation Fund
Grants Service
Rural Payments Agency
Sterling House
Dix's Field
Exeter
EX1 1QA