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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