Adjustment of subsidies in agriculture
Technical developments are also funded in agriculture, which is why the Federal Ministry of Food and Agriculture offers an extensive funding package. The aim is to save resources, reduce harmful emissions and preserve biodiversity. A total of 200 million euros will be made available by 2024 and are intended for the following investment measures:
- Purchase of new machines and equipment for foreign trade
- New construction of a plant for liquid manure separation or low-emission storage of manure
- Costs that are directly related to an investment, such as engineering services or advice
- Depreciable Software
- Measures to improve production and working conditions
- Measures aimed at rationalizing and reducing production costs
- Measures to increase operational value creation
As a prerequisite for an application, it must be ensured that a company is economically stable. In this case, an assessment is made via the house bank. The measure is to be implemented exclusively in Germany and in the case of structural measures, all necessary permits must be granted before the application is submitted. Intangible investments must be sourced from independent third parties.
For farms in primary agricultural production, the funding rate is 40 % of investment costs and maximum 250.000,00 €. Commercial companies in the field of agricultural services receive a reduced subsidy. Here will be maximum 20 % or. 100.000,00 € of the eligible costs.
All grants that are approved and paid out do not have to be repaid!
Limitation of the subject of funding
According to initial findings from implemented and subsidized investments, liquid manure tankers are excluded from a subsidy. Even before this tough decision, slurry tankers were a so-called co-funding for which this funding program was not decided.
A positive effect is an increase in the number of measures that can potentially be funded. In this way, more investment projects have the chance to receive subsidies for efficient investments until the funds are completely exhausted.
Why work with a grant advisor?
Most companies do not have the time to deal with the funding programs and their guidelines. Comparing the guidelines with the project ideas is usually not part of the planning. Later in the implementation phase, no project manager will normally be happy to compare every adjustment to the project with the submitted applications and report them accordingly. Conversely, however, every entrepreneur would like to win the non-repayable grants for themselves!
It is therefore the task of a funding advisor:
- Identify funding programs
- Assess eligibility
- to create applications
- Responsible for administrative management throughout the project
- Notify the sponsor of any adjustments
- Ensuring that all formal conditions are met and the grants are paid
legal entitlement to funding
There is almost no legal entitlement to any funding that is applied for. An exception here is the Innovation Promotion Act of the Federal Republic of Germany. There is a legal entitlement to a subsidy of up to €1 million per year. Funding is primarily provided for personnel costs that have been pursued in an activity that can be defined as innovative.
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