Promotion of Diversification of Activities in the Agricultural and Agri-Related Sector
The state of North Rhine-Westphalia supports farmers in developing additional sources of income in rural areas. Applications are only possible as long as budget funds are available.
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Grant criteria
Funding objective
The aim of the funding is to improve the viability of agricultural enterprises through the development and establishment of additional employment opportunities and alternative sources of income, as well as the expansion and strengthening of the economic foundations in rural areas.
Eligible expenses
- Organizational expenses (consulting, conception, business expenses)
- Personnel expenses (start-up subsidies)
- Material expenses and marketing
- Investments within the framework of the GAK (real estate, machinery, engineering services)
- Qualification measures
Non-eligible expenses
- Investments in agricultural primary production
- ongoing operating expenses
- repayment of liabilities
- compensations for hereditary rights
- loan procurement costs
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Eligible to apply
- Companies
Funding requirements
- Company located in North Rhine-Westphalia
- Agricultural operation meets minimum size according to ALG
- Project economically planned for at least 5 years
- Project must not be funded by other public programs
- Submission of secured overall financing
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Documents required for application
- Basic application
- Investment concept
- Income tax assessments
- Accounting documents
- Pension fund certificate
- Credit commitment declaration
- Proof of equity
- Construction documents or offer documents
- Proof of use
Evaluation criteria
- Creation of at least one new full-time equivalent job
- First-time establishment of a company for diversification
- Investment in retail/direct marketing
- Investment in tourism/farm holidays
- Participation in subject-specific qualification measures within the last 3 years
Description
The program "Promotion of Diversification of Activities in the Agricultural and Agricultural-Related Sector" of the state of North Rhine-Westphalia aims to strengthen the economic base of agricultural enterprises and secure jobs in rural areas in the long term. Funding is provided to small and medium-sized enterprises as well as individual agricultural entrepreneurs, contributing family members, and cooperations that generate at least 25% of their revenue from agricultural products. Through grants ranging from 20% to 80%, measures such as organizational expenses (consulting, planning), personnel costs for start-up aid, marketing and equipment expenses, investments within the framework of the GAK (real estate, machinery, engineering services), as well as qualification measures can be realized. Projects must be economically planned for at least five years and create a new full-time job or establish alternative income sources such as direct marketing, rural tourism, or innovative business branches. The maximum funding amount is €200,000 per recipient within three years.
For an application, a coherent overall concept, an investment plan, proof of own funds and credit commitments, as well as accounting documents are required. Furthermore, the business location must be in NRW and compliance with the de minimis regulation is mandatory. Investments in primary agricultural production, ongoing operating expenses, debt repayment, compensation payments, land purchase, or acquisition of animals are excluded. Since no budget funds are currently available, new basic applications cannot be approved. Interested enterprises should monitor funding opportunities and prepare for future calls to implement diversification plans promptly.
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