Rural businesses have been urged to apply for the new £60million Rural Economy Grant (REG) unveiled by the Government recently.

Land agency firm Strutt & Parker has welcomed the announcement of grant funding which is open to farmers, rural-based enterprises, forestry contractors, woodland owners, horticultural firms and other countryside businesses.

The programme is designed to boost farm competitiveness and enable significant 'game-changing' growth. It was established in response to the Department for Environment, Food and Rural Affair's (Defra) Rural Economy Growth Review, which identified that large grants (from £25,000 up to around £1m) were needed in order to unlock significant rural economic growth potential.

It adds to the Farming and Forestry Improvement Scheme (FFIS), which was developed for smaller projects with a maximum grant allowable per project of £25,000. The REG is directed at projects in the areas of farm competitiveness, including nutrient management, animal health and welfare and water resource management; tourism; forestry; agri-food; and micro-enterprise support. Successful applicants will be eligible to receive up to 40% of the cost of projects, provided those projects cost more than £62,500.

Paul Dennison, farm business consultant in Strutt & Parker's Northallerton office, said: "These grants offer a fantastic opportunity for farming and rural businesses to bring previously unrealisable ideas to life. They are undoubtedly going to be very competitive and will inevitably be time consuming to research and complete. However, they will allow for the development and improvement of businesses which might not have been possible otherwise and it would be foolish to pass up on this chance."

Projects offering the greatest return on grant investment are the most likely to be successful and outline applications must have been submitted by April 30, 2012. Those shortlisted will be then asked to submit a full application. The work cannot start until the grant is approved so the earliest likely start date for these projects will be the autumn.

For information, advice and guidance on grant applications please contact Strutt & Parker's Northallerton office on 01609 780306.