Welsh Government

September 2012

Young Entrants Support Scheme (YESS)

Key Issues

• Loss of talented young farmers through lack of opportunities to start new businesses, or take over existing

businesses

• Increasing agricultural land prices and decreasing availability

• Lack of investment in holdings making them unviable to support succession

Objectives

To encourage young entrants into the agricultural industry and assist them in establishing viable farming businesses

To support young people setting up on their own for the first time, and/or to encourage farming succession in the

agricultural industry.

YESS Basic Eligibility Criteria

Support is provided for successful applicants who:

• are less than 40 years of age and are setting up for the first time on an agricultural holding as head of the holding;

• possess adequate occupational skills and competence;

• Submit a business plan for the development of their farming activities

Applicant Groups

Applications will be accepted from 3 types of businesses:

• Sole Traders

• Young Entrants Partnerships

• Young Entrants Majority Partnerships

The scheme prioritises applications from Sole Traders and Young Entrants Partnerships

Applications are accepted from current or prospective tenants who fall under one of the 3 types of business as long as the tenancy is for a minimum of 5 years

Head of Holding

Defined as:• Applicants must be Head of Holding of the new business

and: be lead decision maker; have financial control over the business account for the business; be in receipt of the majority of the profit from the business, at time of making a claim for grant aid.

Interpreted as:• Having set up as head of holding for the first time before

receipt of grant funding, or having set up as head of holding for the first time 12 months prior to receipt of a valid expression of interest form for the relevant scheme year

Skills and Competence

Two routes:

• Hold, or attain, a minimum of a National Vocational Qualification (NVQ) level 2 qualification in agriculture or subject deemed closely related by the Department or;

• 5 years practical experience and submit Personal Development Plan outlining 6 relevant, accredited agricultural short courses to be taken within 3 years. From year two a specially designed business planning course was made a requirement.

YESS application process additionality

• Comprehensive 5 year business plan

• Skills Assessment for all applicants

• Professional business planning and legal advice available at all public meetings

• YESS external approval group includes: solicitors; financiers; educational specialists; and farmers, who provide additional guidance to applicant

YESS integrated support

Through the Wales Rural Development Plan applicants can access:

• Free Skills Assessments

• Subsidised business planning

• Succession advice and succession facilitation service

YESS Support Package

• Grant aid intervention at 50% of an agreed, eligible expenditure up to £30,000 - maximum grant is £15,000

• Access to 100% subsidised mentoring service, up to 4 days maximum

What is eligible for grant support?

The construction, acquisition or improvement of immovable property

Long term land improvement

The purchase of machinery and equipment, including computer software up to the market value of the asset

Mentoring

Mentors are farmers/professionals who have been successful in business (farming, rural enterprise, diversification)

Mentors’ role is to give practical advice and guidance to the successful applicants

YESS projects - general remarks

Successful applicants from all parts of Wales

Dairy, beef and sheep were main sectors, but projects for pig, poultry and arable businesses have also been accepted

Investments ranged from hill farmer starter packs to new poultry sheds

Years two and three have seen an increase in the amount of projects investing in land improvements

YESS 2010/11 – key stats

Successful applicants: 114

Capital grant paid: £1,527,000

Private Sector leverage: £2,744,000

Projected transfer of business profits to YESS applicants over 5 years: £7,434,000

YESS 2010/11 – key stats

Number of projects with positive Animal Health & Welfare impact: 92 (83%)

Number of projects with positive environmental impact: 40 (36%)

No projects had a negative impact on Animal Health & Welfare or the environment

Key Policy Success

“Government and the industry have for years being trying to raise the issue of farm business succession and this scheme, whether by accident or design, has got the whole industry talking about the issue in a constructive way.”

YESS external approval group member