Cereals

Intervention

The Department will purchase from producers from June to March in minimum quantities of 2 tonnes intervention grain (barley and wheat) which meets minimum quality standards of dryness and cleanliness. Milling wheat is not included in the scheme. Intervention prices are fixed per month, with the rates being set annually. Grain may be purchased from intervention in minimum quantities of 2 tonnes: the sale price is at 107.5% of that monthly intervention purchase price.

Area Payments

Laxey Glen Mills Limited Milling Wheat Scheme 2002

This scheme enables payments of up to £32 per tonne to be made to growers who supply Laxey Glen Mills Limited with milling wheat. Payments are based on the wheat meeting the strict standards required for milling and further processing.

Infrastructure

Farm and Horticultural Improvement Scheme 2006

This scheme allows for eligible farmers and horticulturists to receive grants to carry out improvements to their productive land and buildings. An application for a grant must be made and the work agreed prior to work commencing. Once the work is complete a claim is made and an Officer then inspects it and payment can be made if appropriate.

The Scheme is open to agricultural and horticultural production businesses, agricultural contractors and commercial bee-keepers. To be eligible a business operator, excepting bee-keepers, must have been permanently resident on the Island for at least 5 years immediately prior to the application and the business must generate at least 900 hours agricultural activity per year.

Grant assistance may be approved up to a maximum of £200,000 capital expenditure in a five year period with the exception of up to £60,000 capital expenditure in any 5 year period in relation to fixed agricultural effluent and waste facilities. Payments are calculated using a range of standard costs with the rates varying from 15% to 50% and an extra 10% available to Young Farmers.

Agri-Environment Scheme 2002

This scheme is aimed at supporting wildlife-friendly farming methods and allows payments to farmers who manage their land to agreed standards for the benefit of wildlife and the environment. The whole farm must be entered into the scheme and payments are made at 3 levels:

1) Whole Farm area, payment per acre, annually;

2) Habitat, payment by management technique, annually;

3) Options and Initiatives, payment for farmer-led initiatives to improve wildlife habitat, paid quarterly.

This scheme is now fully subscribed but may be extended in the future.

Organic Farming Scheme 2004

This Scheme seeks to encourage those who see an opportunity to develop a viable and sustainable organic market and to aid them during the conversion period.

Payments recognise that during the period of conversion the output from the land and farming activities may fall. The purpose of the scheme is to compensate the farmer for that reduced output and is not to support one particular management system over another.

To be eligible a farmer’s plan to convert land to organic status must be approved by a body sanctioned by the UK Register of Organic Farm Standards and must be for a minimum of 2 acres in area. Payments are made per acre for a 5 year period, reducing over that time.

Young Farmers Setting-up Scheme 2004

This scheme is intended to help young farmers (under 40 years of age) set up an agricultural production business. It allows for the payment of up to £20,000 towards capital scheme costs and for payment of the interest on a commercial loan taken out to progress the business.

The Agricultural Holdings (Loans) Scheme 2007

Individual sitting farm tenants, farmers and prospective farmers and certain Limited Companies may apply for a loan to purchase agricultural land for their own occupancy. There are however various conditions which must be met.

The applicant must show that he has agricultural experience and ability, and has resided on the Island for at least the last 5 years. He can then apply for a loan towards the purchase of agricultural land to be occupied and farmed by him.

The maximum loan is 90% of the assessed freehold value of the land on purchase cost incurred in the Isle of Man. The applicant must provide at least 10% of the purchase price - this money must not be borrowed on the security of the land. The interest rate on the loan is determined by the Treasury and is currently (October 2007) 5%.

Loan repayments and interest are to be made half-yearly; the period in which the whole is to be repaid will be determined by the Department, but will not exceed 40 years. The final decision on the application rests with the Treasury.

The Agricultural Credits Acts 1924 & 1966

This scheme allows for landowners or life tenants to receive loans to carry out approved improvements to their farm. It is related to capital work eligible under the Farm Improvement Scheme for grant assistance, so loans are available for buildings but not equipment, fencing or drainage.

The applicant may apply for a loan of up to 80% of the net cost of the improvements after any grant assistance. Loans must not exceed 75% of the valuation of the holding, taking account of all current encumbrances. Advances may be given up to 70% of the actual expenditure. The interest rate is 6% per annum; the loan must be repaid by twice-yearly instalments over a period which will be determined by the Department, but will not exceed 20 years. The loan is secured on the holding where the improvement is sited.

The Loan Assistance for New Farmers Scheme 1990

This scheme allows for new farmers to receive loans to enable them to buy new or re-conditioned machinery and implements.

A new farmer is someone who has for the first time commenced farming in his own right within a period of 2 years from the date of application, and prior to commencing farming was either associated with or actively engaged on a Manx farm throughout the immediately preceding 5 year period.

A new farmer can apply for a loan up to 75% of the cost of machinery and implements, net of VAT. The maximum loan is £15,000 either singly or in aggregate, with half-yearly payments; the maximum repayment period is 6 years. The interest rate on the loan is 6%.

The loan will be paid directly to the supplier, once a correctly certified invoice has been received. The Treasury buy the equipment and lease it on hire purchase terms to the applicant.

The new farmer must submit an application and wait for a decision before making his purchase. A Form of Agreement must then be completed by any successful applicant. If reconditioned goods are purchased then the farmer must get a Certificate of Warranty. The machinery/implement must be insured by the applicant.

Provision of Lime Scheme 2002

Lime is an important part of agricultural management of the land. It helps maintain soil fertility and is essential for grass and cereal growing. Under this scheme payment is made to the supplier on behalf of the Farmer once the lime has been applied to the land. The level of payment is based upon the neutralising value of the lime supplied.

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