The Sustainable Farming Fund

This new Fund was launched by the Government on 6 September 2000 and is administered by the Ministry of Agriculture and Forestry.

The land-based primary industries are, and will remain, the cornerstone of the New Zealand economy. Wise use of the resources that underpin these industries is vital.

In recent years, rural communities have experienced many changes. Some of these, along with a number of natural events, have had adverse impacts for many of those communities. Our ability to manage the risks and to respond to new opportunities is the key to our future economic, social and environmental well-being.

The Government recognises the profound interdependence of financially viable land-based businesses, sustainable rural environments and thriving rural communities. As a former Parliamentary Commissioner for the Environment once said: “It’s hard to be green when you are in the red.”

Jim SuttonWhile a good season points to recovery in some sectors, the structural changes of the recent past have highlighted areas where support is needed. To help maintain the viability of rural communities and contribute to the improvement of their economic base and protection of environmental values, the Government will provide assistance in the form of a Sustainable Farming Fund.

This contestable Fund will provide financial support through grants for help in solving community problems, thereby enhancing environmental, economic and social outcomes.

Jim Sutton
Minister of Agriculture and Minister for Rural Affairs

The Projects

The Fund provides grants for projects lasting from one to three years.

Projects must seek to address a need that is identified by the community. The community needs to express a desire for the aim of the project and be willing to contribute to the project. Projects may include, but will not be restricted to:

  • resource inventory work;
  • investigations into the efficient use of land-based resources.
  • demonstration projects;
  • information/technology transfer; and
  • identifying barriers to and options for improved land use and management.

Criteria

Preference will be given to projects that:

  • provide the greatest benefit across a rural community (as opposed to benefits restricted to individuals or private companies);
  • demonstrate genuine commitment of, and partnership with, a rural community. Partnership must involve financial participation. A larger amount of community contribution indicates a greater degree of community support;
  • align with existing community or sector strategies (e.g. research strategies, regional development strategies);
  • promote economic and environmental sustainability;
  • are aligned with, and do not clash with, other government initiatives; and
  • can demonstrate value-for-money.

In general, the Fund should be the sole provider of a government cash grant to a project. A project may be co-funded from other government funds, but the total government contribution cannot exceed 80 percent of the total project cost. Contributions from partners and communities can be by cash or “in-kind “. Ways of valuing in-kind contributions are described in the guidelines to the application form (see section “How to Apply”).

In the first year a total of $5 million will be available for projects. This may increase in subsequent years. The maximum grant payable will normally not exceed $200,000 (GST inclusive) per project per year. To meet logistical constraints in the first year of the Fund (1 July 2000 to 30 June 2001) the lower limit for projects will be $10,000 i.e. projects should have a total cost of $10,000 or more. It is intended that, in subsequent years, part of the Fund will be reserved for projects under $10,000. Applicants for these projects will use the same application form but applications will be processed by a simpler system.

There will be two application rounds during the current financial year. The first round is for projects that will be ready to go in the financial year ending 30 June 2001 (applications closed for this round on 20 October 2000). The second round will be for projects that can start from July 2001. Funding for the second (and subsequent) years will depend on the availability of government money. Applications for this second funding period will be invited early in 2001.

Who is Eligible to Apply?

Any group, organisation or individual able to demonstrate they are capable of delivering the proposed project can apply.

To be eligible to apply for the Fund, applicants should:

  • be resident in New Zealand for tax purposes;
  • demonstrate how the funding will add value to existing activities;
  • demonstrate a commitment to retain the value of the proposal in New Zealand;
  • demonstrate capability and motivation;
  • show why they need this funding rather than any alternative funding;
  • have proposals and concepts consistent with New Zealand’s laws and regulations; and
  • represent an identifiable entity and have the authority to sign a project agreement (contract).

How to Apply

An electronic application form (plus guidelines) can be downloaded from MAF’s Internet web site (www.maf.govt.nz) or emailed on request to sffund@maf.govt.nz or mailed on a floppy disk on request by phoning 0800 100 087. Completed forms should be emailed or mailed back on floppy disk. A hard copy must also be mailed for confirmation. Paper copies of the application form and guidelines are available on request (phone 0800 100 087).

NB “Sustainable Farming Fund “is an operating name that refers to funding voted in the Estimates of Appropriation as: “Sustainable Resource Development -contestable fund for local sustainable resource development projects aimed at improving environmental outcomes and economic performance.”

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Contact for Enquiries

Amber Duncalfe
Editor - RM Update
Ministry of Agriculture and Forestry
PO Box 2526
Wellington
NEW ZEALAND

Tel: +64 4 894 0710
Fax: +64 4 894 0745
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