Guidance

Aquaculture sector - Frequently Asked Questions (FAQs)

Updated 6 May 2020

1. Why is the aquaculture support fund needed?

Aquaculture businesses provide jobs and support our food supply. They also contribute to the economy and help support the economies of rural and coastal communities.

Analysis and evidence from the Fish Health Inspectorate, Seafish and industry bodies shows that businesses farming shellfish and trout for direct human consumption have experienced substantial adverse impacts due to the loss of retail opportunities, exports, hospitality and processing markets in recent weeks.

2. What is the support and what is it for?

Around £1 million of the Fisheries Response Fund (FRF) has been allocated to the aquaculture sector to support the ongoing production costs of active aquaculture farms in England producing shellfish and trout for direct human consumption. These are ongoing costs that cannot be significantly offset by a reduction in overheads, such as water supply, repair and maintenance and energy.

3. What payments will be available?

Fund payments are set in bands based on validated Full-Time Equivalent (FTE) employee numbers, which provide an indication of the scale of the business. The table below indicates the amount payable per band for each type of farm.

Band FTE	Month 1	Month 2	Total
SHELLFISH
0 output / 0 FTE	£0	£0	£0
0.01 – 0.49 FTE	£1,388	£1,388	£2,776
0.5 – 1.49 FTE	£2,776	£2,776	£5,552
1.50 – 2.49 FTE	£5,552	£4,448*	£10,000*
2.50 – 3.49 FTE	£8,328	£1,672*	£10,000*
3.5 + FTE	£10,000*	£0*	£10,000*

Band FTE	Month 1	Month 2	Total
TABLE TROUT
0 output / 0 FTE	£0	£0	£0
0.01 – 0.49 FTE	£3,166	£3,166	£6,332
0.5 – 1.49 FTE	£6,332	£3,668*	£10,000*
1.50 + FTE	£10,000*	0*	£10,000*

*The maximum amount payable in total is £10,000 per farm.

4. Who is administering the Fund for aquaculture?

The Marine Management Organisation (MMO) is administering the Fund for both fishing and aquaculture businesses, as well as the recently announced Domestic Seafood Supply Scheme (DSSS) on behalf of Defra. MMO has successfully delivered over £100 million through funds for fisheries and coastal communities in five years and currently operates the UK’s Maritime and Fisheries Fund (MFF) and the European Maritime and Fisheries Fund (EMFF).

5. How do aquaculture businesses apply?

From 6 May 2020, eligible businesses will be contacted directly by MMO by email or phone and asked to fill in an application form, which they must complete and return by email. To allow the grants team to work as quickly as possible through all applications, please avoid contacting them unless you have a query on a live application.

MMO has increased its grants team and extended its opening hours to provide support to eligible businesses and ensure payments are made swiftly.

6. Who is eligible for this aquaculture support?

This is a targeted scheme for aquaculture businesses in England that produce shellfish and trout for direct human consumption.

To qualify, businesses must operate an active aquaculture farm in England authorised by the Fish Health Inspectorate producing shellfish or trout for direct human consumption.

In general businesses can apply only once for support under the Fisheries Response Fund scheme – if they operate a fishing vessel and also have a shellfish or trout farm, they may apply either for the catch or aquaculture element of their business.

7. Which aquaculture businesses are not eligible?

The scheme supports businesses that farm trout and shellfish for direct human consumption.
The fund does not apply to:

• Farms that only produce trout or other fish to restock lakes
• Shellfish hatcheries, or businesses involved in the supply of juvenile fish or juvenile shellfish for aquaculture, or purifying shellfish prior to consumption (depuration)
• Farms that supply ornamental fish, or research bodies
• Aquaculture businesses that have already benefitted from the Fund will not be paid twice for the same business activity
• Other aquaculture fish for human consumption such as tilapia, sturgeon or carp

This fund is subject to the temporary state aid framework, which may mean some organisations may not be applicable.

This applies if your business has received other forms of support provided under the temporary state aid framework including the Fisheries Response Fund (FRF), the Domestic Seafood Support Scheme, Small Business Grant Fund, Coronavirus Business Interruption Loan Scheme (CBILs), or Bounce Back Loans and the total amount of benefits you have received from all schemes has exceeded €120,000 (around £105,000). Note this includes the value of the fees and 12 months interest received from the CBILS or Bounce Back Loan, not the amount of the loan.

8. Can I apply for other grants as well as this one?

You may apply for other government funds. Aquaculture businesses that have already benefitted from the Fund will not be paid twice for the same business activity
Businesses should be aware of the temporary state aid framework.

9. How have you defined the payment bands?

Businesses have been categorised into funding bands, according to the number of full-time equivalent employees (FTE), as recorded in the latest validated records available from the Fish Health Inspectorate (FHI) in 2018. This data has been selected as the best available verifiable data for the sector, providing an indicator of scale and business performance. Due to the difference in the average costs of production for shellfish and trout businesses there are separate bands for each.

10. How have you calculated the operational costs of production?

Average monthly operational costs of production have been calculated using publicly available data from the Scientific, Technical and Economic Committee for Fisheries (STECF) from 2016, with an increase to account for inflation. To comply with state aid regulations and avoid double-counting with existing government schemes which are available to the sector, the costs exclude livestock costs, wages and depreciation.

11. What if I farm trout for restocking as well as for human consumption?

Where businesses have farms that produce both table trout and trout for restocking lakes, the FTE band will be calculated in proportion to the production of their direct table trout output, based on 2018 data.

Production data held by the Fish Health Inspectorate will be used to determine what proportion of the business is involved in the production of table trout. The FTE employee number can be scaled to reflect only the table trout side of the business. For example, if a farm has 2 FTE employees and 50% of its production is table trout, then it will fall in the band for businesses with 1 FTE employee.

12. What if my business has more than one farm and my staff work across all of them?

The payments will be made per farm. Where a business runs more than one farm, the recorded total number of full-time equivalent employees will be proportioned pro rata across each farm.

13. Why is £10k per farm the maximum amount payable for FRF?

Government has announced a significant range of financial support for businesses and individuals in these unprecedented times and this fund operates alongside those. This additional support, like all other government schemes, has limited funds available. We are using the Fund to target those currently most in need within the funds available. Additionally, businesses may continue to operate and still receive Fund payments.

14. What can the money be used for?

The Fund provides targeted support to help businesses cover their ongoing costs of production during the Covid-19 crisis. These costs are likely to include water, repairs and maintenance and energy costs. It is for the business to identify how best to utilise the fund.

15. Why are fish and shellfish for restocking not included in the scheme?

The scheme focuses on food for direct human consumption. Farmed shellfish and table trout are an integral part of our food security now and will continue to be in the future.

16. Why are hatcheries or other associated businesses not included?

Like all other funds, there is a limit. We recognise the whole of industry is impacted but we have allocated this finite fund towards the sectors that directly provide fish and shellfish for human consumption.

The support scheme for eligible businesses will ensure that where practical the supply chain continues to flow and processors and other facilities are still able to access shellfish and trout. Other parts of the seafood chain are more likely to benefit directly from measures already announced by government to support business.

17. Why use 2018 figures?

These are the most recent validated figures which are held by the Fish Health Inspectorate.

18. What if someone has bought and operated a farm or extended their operations since 2018?

Businesses or farms that opened, or expanded their FTE employees number in 2019 should contact the MMO. They will be required to provide verifiable evidence of their FTE employee numbers in 2019.

19. Who will receive the payments if there is more than one farm in the business?

The operator of each eligible farm will be contacted by the MMO. Payments will be made into the bank account nominated by the operator.

20. If successful when will grants be paid?

The MMO has mobilised the new systems required to be ready to start processing the funds on receipt of completed application forms. The aim is to make payments directly into business bank accounts, generally the same day as they are approved.

21. Does the fund have a complaints and disputes process?

MMO is committed to providing good customer service. If you are not satisfied with our service please let us know and we will do our best to resolve the matter as quickly as possible.

For complaints about the quality of MMO customer service, for example - delays, unclear advice or discourteous behaviours, please contact the MMO using our published customer complaints procedure.

For disputes about FRF payments, please contact fisheries_response_fund@marinemanagement.org.uk with details of your concerns and any supporting evidence you want Defra to consider .

22. More information?

Further information on the Fisheries Response Fund and other support for the fishing and seafood industry

To allow the MMO grants team to work as quickly as possible through all applications, please avoid contacting them unless you have a query on a live application.

Fisheries Response Fund
Telephone: 03300 416579
Opening Hours: 9-7 Mon-Fri, 9-1 Sat
Email: fisheries_response_fund@marinemanagement.org.uk