The delay in decision making that has effectively stopped the Rural Development Programme (RDP) for England in its tracks, will not only put an immediate brake on diversification projects, but could also stagnate thinking on such projects for the future, according to Jonathan Armitage, Farm Business Consultant of Strutt & Parker.

“Two of the key factors for successful diversification are enthusiasm and momentum from the individuals involved in the scheme. The delay and uncertainty over when grants will become available in the future will have a major effect on both of these.

“There is a danger that schemes with real potential to make a difference to individual farming businesses and wider local communities by creating new opportunities just won’t go ahead. Many diversification projects need the grant to act as the hand-crank to get the businesses turning over in the first trading period, until they can stand on their own two feet.”

The delay in the RDP was announced last week because of the uncertainty surrounding the financing of grants. This was because the European Parliament has still not ratified agreement on the implementation of voluntary national modulation. Because of this the UK can’t say how much money it will have from this; it can’t determine the level of grants and has thus delayed the re-start of the scheme.

“If a diversification project is reliant on a grant for its initial success, then farmers should not go ahead with their project until the situation has been clarified,” he adds.

“The Government should, as the NFU insists, put a contingency plan in place to maintain the momentum of the diversification and prevent the undoubted stagnation of thinking and enthusiasm that will result if the grants dry-up in their entirety.”