NORTHERN farmers have been urged to take advantage of funding aimed at helping them to diversify their business.

Many farmers are being forced to look at alternative means of income, according to rural business advisers, and, whether it is capital to fund projects or training to develop new skills, it is important to know what financial help is available, says the Institute of Chartered Accountants' farming group.

Mr John McGrother, the group's Northern spokesman, said: "Funding through the England rural development programme could be a significant lifeline for those who are looking at diversification schemes. With farming continuing to struggle financially, these grants could make a real difference in developing an alternative income source."

Mr McGrother, a partner in Jewitts, Stockton, added: "Farmers and landowners need to ensure they are making the most of what is on offer. These are changing times for the industry and every penny counts for rural businesses against the present backdrop of very limited reserves."

Launched by the government last October, the ERDP is the umbrella for a range of grant schemes, including the countryside stewardship scheme. The most important initiative is the rural enterprise scheme, which is specifically targeted at providing grant aid for farming and rural businesses seeking to diversify from core agricultural activities.

Support is available for projects such as a farm shop, tourist activities or converting redundant buildings for office or residential letting.

Grants are awarded on a competitive tendering basis, with each project assessed on its merits. Up to 30pc could be provided, even where there is a significant economic return.

Another government initiative is the vocational training scheme, which offers funding for farmers and their employees to develop new skills in areas such as information technology, business diversification, marketing and conservation.

A free skill check is available through LANTRA, the national land-based training organisation. For the current year, these need to be completed by the end of February. Further details are available from LANTRA on 0800 1699794.