Sustainable Farming Fund – Climate Change Application Process, Guidelines and Criteria

Background

The purpose of the MAF Sustainable Farming Fund (SFF) is to improve the financial and environmental performance of New Zealand’s productive land-based sectors.

It does this by supporting projects that are:

  • based around solving problems, or taking up opportunities, related to sustainable resource use; and
  • defined and driven by a farmer, grower or forester-led “Community of Interest” - groups of stakeholders drawn together by the common problem(s) or opportunity.

The SFF Climate Change portfolio (SFF-CC) is a dedicated fund to enable the primary industries to respond to the challenges of climate change and to help encourage the sectors to adopt greenhouse gas emissions mitigation technologies and land management practices. It is a new initiative that has been established as part of the Sustainable Land Management and Climate Change Plan of Action see http://www.maf.govt.nz/climatechange/.

A minimum of $2.0 million in grant funding is available for SFF-CC projects from the 2008/09 financial year onwards. In addition $200,000 per year is available specifically for projects that support Greenhouse Gas Footprinting and Life Cycle Analysis.

Groups wishing to apply for funding from the SFF-Climate Change portfolio should follow these Guidelines when completing the Application Form.

In 2008/09 SFF-CC projects will be assessed in a one step process. The maximum SFF-CC grant available is $600,000 (i.e., $200,000 per year over three years). Groups can apply for two types of funding, each lasting from one to three years:

1. Small projects, with a total grant of $20,000 (incl GST) or less

This category of funding is for groups wishing to undertake initial scoping studies before embarking on larger projects, or for projects with a regional or local focus. It is also suited to supporting one-off knowledge sharing and extension initiatives. These projects have reduced reporting requirements.

2. Projects with a grant up to $200,000 (incl GST) per annum

This category is usually for larger projects, often with a national focus. There is an increased level of reporting than the smaller projects (usually 3 times per year).

Timeframes

The following are important dates and timeframes for the SFF-CC assessment process:

10 March 2008

 Deadline for receipt of applications

Mid May 2008

 Applicants notified of final decisions.

SFF - Climate Change Information

SFF-CC Outcomes

At a practical level, SFF-CC is designed to provide land managers with:

1. Improved information - including:

  • Awareness of the overall issue of climate change and the need to respond;
  • The impact that climate change may have on their operations; and/or
  • The contribution that their operations may make to climate change.

2. Tools and technologies including management practices to adapt to the impact of climate change (i.e., adaptation tools and technologies) or reduce its impact (i.e., mitigation tools and technologies).

3. Enhanced capability to apply the above information/ tools/ technologies to their business.

The SFF-CC portfolio will invest in farmer, grower or forester-driven projects focused on advancing the three core climate change-related objectives outlined in The Sustainable Land Management and Climate Change Programme of Action, (http://www.maf.govt.nz/climatechange/sustainable-land-management-poa/page-03.htm):

  • Mitigation - Reducing greenhouse gas emissions (with associated reduction in related environmental impacts and improvement in efficiency of resource use);
  • Adaptation - Adapting to a changing climate; and
  • Business opportunities - Capitalising on climate change-related business opportunities, including undertaking Green House Gas Life Cycle Analyses (GHG-LCA).

Greenhouse Gas Footprinting and Life Cycle Analysis

Up to $200,000 per annum is specifically available for Green House Gas Life Cycle Analysis projects (GHG-LCA). The aim of this targeted funding is to:

  • ensure that smaller primary industries not covered by the sector methodology can progress GHG footprinting work;
  • focus on specific hotspots in a sector supply chain where robust information may be missing, or specific work needed to identify emission reductions opportunities;
  • provide the potential for better education, information and networking among the primary industries on GHG footprinting work; and
  • test or trial products and processes developed by commercial businesses, including those with LCA-GHG implications where they demonstrate a strong industry good technology transfer dimension.

Applications are to be made on the SFF-CC Application forms and will be assessed along with the other SFF-CC applications.

Eligibility

SFF-CC projects contribute to the economic, social and environmental viability of farmers, growers, foresters and their wider rural communities.

Projects can include, but are not restricted to:

  • generating and sharing tools and knowledge related to climate change, its effects and adaptation to them;
  • applied research, development, demonstration and technology transfer of greenhouse gas mitigation technologies, tools and land management practices;
  • development of greenhouse gas footprints and life cycle analysis;
  • technical investigations supporting improved use and efficiency of water, energy use and biofuels;
  • improving decision support for climate change issues;
  • adding value and exploring market opportunities for climate change initiatives.

Activities and expenditure that are usually1 not appropriate for SFF support includes:

  • projects involving unsustainable land management or environmental practices.
  • projects primarily benefiting an individual or single business/farming unit (including the funding of whole farm plans).
  • activities more appropriately funded by other funding bodies or organisations.
  • long-term on-going costs of an organisation or trial/project.
  • large capital expenditure.
  • retrospective costs.
  • local or central government fees or charges.
  • conservation, mining or marine farming projects.
  • projects from applicants not resident in New Zealand for tax purposes.
  • participation in statutory processes, litigation, or resource inventory work.

Note: SFF-CC projects must genuinely advance the climate change objectives. Projects that do not have a genuine climate change focus should be submitted into the normal SFF funding round.

General Assessment Information

The assessment process will primarily be based on the information provided in the application form for 2008/09 SFF-CC. Applications will be assessed by a panel comprised of external experts and MAF staff. The SFF may seek rankings and commentary from the Climate Change Technical Working Group and sectoral organisations as part of the assessment process.

The resulting panel recommendations will become the basis for funding decisions. The Director General of MAF (or his designate) will make final funding decisions on behalf of MAF.

Note: The Minister of Agriculture and Forestry is not involved in the assessment process.

When considering applying to the SFF, prospective applicants should note the following:

Unsuccessful Applications - The SFF project selection process is:

  • highly competitive (3-4 times oversubscribed);
  • based on a subjective assessment of merit; and
  • limited by the funds available.

Often well regarded proposals are unsuccessful (or successful at reduced funding). This is often because the assessment panel has concluded:

  • that the project is of lower merit or priority relative to others received; or
  • the area is adequately covered elsewhere in the SFF’s existing project portfolio.

Confidentiality - Information in project applications will usually be limited to the SFF team, other MAF staff and external SFF assessors (including other funders or pan-industry bodies whose input is sought). However, from time-to-time the SFF may also make application information available to other parties (including other applicants) - for example in a situation where two or more applications are similar and the SFF wishes to broker a coordinated or amalgamated project.

If the applicant considers any part of their project to be confidential then they must make a written request, under separate cover, to the SFF Manager at the time of submission. The request should specify the party(s) whom the applicant does not wish to view the application and the reasons why not2.

Intellectual Property - MAF will own3 all intellectual property developed, discovered or created during the course of an SFF-funded project including (but not limited to) any copyright in final reports and documents directly related to the project. However, in recognition of the public good objectives of the fund, the SFF’s default policy with respect to intellectual property is to grant a non-exclusive, royalty-free license to any person or body within New Zealand, to use, copy and distribute any intellectual property developed, discovered or created during the course the project.

To this end, the Applicant Group must make any such intellectual property available on request, and at no charge (except for such reasonable costs as may be approved in writing by MAF).

Note: If there is a compelling reason to restrict IP ownership or access (i.e., to provide exclusivity to the applicant Group or a third party), the applicant should discuss this situation with the SFF Manager during the project contracting process, or as soon as the situation is recognised.

General Project Management Information

If a project is successful, the applicants will need to commit to the following contractual obligations. Failure to do so may result in the withdrawal of funding support:

SFF Project Management - The SFF’s financial year runs from 1 July to 30 June. The following accounting and reporting requirements apply to grants made by the SFF:

  1. The grantee will provide written Progress Reports and Requests for Payments (usually up to three times per year) according to the SFF’s reporting schedule.
  2. Claims for payments will be lodged as Requests for Payments (in a format approved or supplied by the SFF) and certified correct by the project’s financial manager (who must not be the project manager).
  3. Note:  Proof of expenditure (invoices, etc.) must be available for Performance Validation and Audit (see below) but need not be submitted with a claim.
  4. Claims for payments must be supported by Progress Reports (in a format approved or supplied by the SFF) lodged by the project manager.
  5. A selection of projects will be subject to Performance Validation and Audit with respect to both financial management and milestone progress achievement(s).
  6. The Grantee must keep proper accounts for Performance Validation and Audit purposes. The SFF may ask for a copy of accounts to be supplied with any progress payment request.
  7. Final payment of up to 15% of the total grant may be withheld until the SFF receives a satisfactory final report of achievements and accounts.

MAF Publicity - MAF reserves the right to use information regarding grant funded projects for publicity purposes.

Acknowledgement of Funding - The Sustainable Farming Fund must be acknowledged as a source of funding in all publications and publicity regarding grant funded projects. MAF may specify the form and content of such acknowledgement.

Assessment Criteria

All applications will be assessed against the following criteria:

Potential Impact - An assessment of the overall financial, environmental and social benefits that would stem from a successful project in relation to the Community of Interest involved. This will include considering the following:

  • Scale of the problem or opportunity being addressed - including, where appropriate, consideration of alignment to wider industry strategies or priorities.
  • Uptake - the likely effectiveness of the project’s proposed knowledge sharing/extension activities (i.e., how well and widely the new knowledge, practice or technology developed will be disseminated, adopted and implemented).

User Commitment - An assessment of the Community of Interest’s (and other relevant stakeholders’) commitment to, and engagement in, the project. This will include considering the following:

  • Composition and roles/functions of the Project Team.
  • Financial and in-kind commitments being made to the project.

Ability to Deliver - An assessment of the technical and project management skills and capabilities being brought to bear on the project.

Value for Money - An assessment of the overall value for money based on the cost of the project and the potential benefits it might deliver.

In addition to the above, final investment recommendations also take into account consideration of:

Overall Portfolio Balance - An assessment of the balance across sectors, regions and outcomes (including consideration of existing SFF, and other funders, investments).

Other Factors - Where relevant, issues such as timeliness and innovation of approach will be factored into the overall assessment and ranking process.

Greenhouse Gas Footprinting and Life Cycle Analysis

In addition to the usual SFF assessment criteria, those projects with a focus on Greenhouse Gas Footprinting and Life Cycle Analysis will also be assessed on the following:

  • Alignment with relevant emerging international standards and national approaches such as the Emission Trading Scheme and National Greenhouse Gas Inventory (NB. there will be some flexibility around the unique factors applying to a particular industry or region). 
  • Comprehensiveness of the measurement approach - measuring all three major green house gases (carbon dioxide, nitrous oxide and, in livestock systems, methane), plus other green house gas emissions if relevant, would be considered more complete than focussing on one gas only.
  • Successful applicants will be invited to participate in a workshop to share and test their proposed methods.

Note: The application form will be the primary basis for assessment. However, MAF retains the right to use other information it deems relevant to assist in the assessment process. This includes seeking input from sector organisations and other funders.

Application Form - Completion Guidelines

General Submission Notes

  • Note that only applications submitted electronically, and on time, will be accepted.
  • All applicants will receive an automatic acknowledgement of their submission by return e-mail. If you do not receive a response please contact the SFF immediately.
  • Headings and numbering in these Guidelines relate to those on the Application Form.
  • Completed forms should not exceed the space available. Reducing font size and removing paragraph breaks makes proposals difficult to read, and are not received favourably by assessors.
  • Applicants should provide clear and succinct descriptions of their projects and use non-scientific language where possible.
  • No additional appendices will be considered (other than those specifically requested by the SFF).

1. Project Title

Provide a short (<10 words) and meaningful title for the project.

2. Applicant Group

Name the group submitting the application on behalf of the Community of Interest. This is often (but not always) the entity with which the SFF will contract successful projects.

Note: Applications may be submitted directly by the Community of Interest or by an agent (e.g., a closely allied organisation or individual).

3. Community of Interest

‘Communities of Interest’ are groups of people, organisations, or sectors drawn together by a shared problem or opportunity. They will be the primary beneficiaries of a project’s results and therefore should be directly targeted by the extension activities within the project (see Section 8).

Name the Community of Interest and briefly describe:

  • What stakeholders it represents;
  • The group's purpose; and
  • How and when the group was formed.

Note: If the Community of Interest is not yet organised into a named entity, please ensure the community’s “leaders” are listed in Section 4.

4. Project Team Composition

The project manager is the person responsible for delivering the project results. They are usually, but not always, the SFF contact person for the project.

List other individuals who will play an active leadership role in the project. The number of individuals listed will depend on the size and nature of the project. The objective is to demonstrate that there is real community partnership and engagement.

5. Contact Details

Any contact from the SFF during the application process will be directed via this person. The named contact must have sufficient knowledge about the application to be able to answer any queries, and be contactable on the given daytime phone number or e-mail.

6. Other Project Details

Record the SFF amount requested for each year as well as the total requested SFF funding. All figures must be GST inclusive. Note the expected start and end dates.

Indicate which of the climate change objectives the project primarily relates to (more than one is acceptable). Use Section 9 to outline how your project fits with these climate change objectives.

7. Problem/Opportunity Description

The problem and/or opportunity identified by the Community of Interest should be clearly described, i.e., what is the gap that the project is seeking to fill?

This section should describe the magnitude or importance of the issue. Wherever possible, try to quantify/size the issue (e.g., number of hectares at risk or affected; % or $$ production losses; potential market size; etc).

This section should also profile any critical timeliness issues (e.g., urgency to coincide with respect to wider factors or activities outside of the project).

8. Expected Outcomes

Outline what success would look like for your project’s Community of Interest - i.e., what changes would result, and who would make these changes happen? Also, outline whether this project aligns with any larger proposal or industry strategy.

9. Fit with SFF-CC

Describe how your project fits with the climate change objectives (see http://www.maf.govt.nz/climatechange/). Also outline the fit with other potential funding sources (e.g., local/regional authorities, levy bodies/industry, or other central government funding).

10. Project Design and Delivery

This section should succinctly describe what your project is actually going to do to solve the problem and/or take advantage of the opportunity identified. It should cover:

  • Project Design - Provide an outline of the experimental or investigatory approach to be taken (e.g., trials to be established, research to be undertaken, interviews to be completed, etc). Also describe how the Project Team or Community of Interest will help monitor progress and steer direction.
  • Knowledge Sharing & Extension - Describe how new information or knowledge generated will be communicated to the Community of Interest, and, where appropriate, to wider interested stakeholders.
  • Ability to Deliver - Demonstrate that the project has access to the necessary technical and project management skills to deliver on its intentions. Give the name of the individual or organisation who will provide any specialist (e.g., technical) skills required, or else outline how such skills will be sourced.
  • Evaluation - Outline how progress will be monitored and how the impact/success of the project will be measured. Also, indicate what on-going or long-term plans you have for the project if it is successful.

11. Previous Work

Clearly specify any directly relevant work that may have been undertaken previously in New Zealand or overseas, either by the applicant group or others. Describe how this project will build on this existing knowledge or practice base. If applicable, outline how the proposed approach is likely to succeed where previous attempts may have not. Alternatively, if the work proposed is completely new, please state that this is the case.

Note: This section should not be used to provide a record of past achievements of the applicant group or technical provider unless they directly relate to this proposal.

12. Milestones

Milestones are major activities, stages or outputs of a project that are key to achieving the project’s overall objectives. The milestone table will become the main basis for contracting projects objectives, so must include sufficient detail to enable the SFF team, or its agents, to monitor project progress and substantiate payments. There will be an opportunity to review milestones prior to contracting.

Milestones should be specific, measurable, achievement focused and time bound.

Description - Describe the major milestones for your project. These should reflect the activities and outputs described in Section 10 (Project Design and Delivery).

Milestones should be measurable (or otherwise auditable) and have an achievement-focus (e.g., Establish trial sites in….; Complete laboratory analysis of resistance and publish findings in industry publication…; Host field day for at least ## farmers in…).

Note:

  • All SFF projects must provide a final summary report upon completion. This is represented as Milestone X - Final Report in the table.
  • Final payment of up to 15% of the total grant may be withheld until the SFF receives a satisfactory final report of achievements and accounts.

Due Date - For each milestone please provide a planned completion date.

Estimated Costs - Provide an estimated cost for completing each milestone.

Note: SFF projects involve co-funding from industry or community partners. This co-funding may support discrete areas of activities (i.e., 'standalone' milestones) or may be used to support all project activities on a parallel/pro-rata basis alongside SFF funds. The milestone table should illustrate how this co-funding is being used.

13. Project Funding

Applicants are required to complete the tables4 that describe the project’s costs (Appendix 1 provides some definitions of cost items) and where the project’s funds will come from.

Note: All figures provided must be GST inclusive.

Applicants must also provide a detailed breakdown of the project costings represented in this table (cash and in-kind) as an appendix to the completed application form.

Non-SFF Contributions - The maximum grant available from the SFF and other central government funding is 80% of the project value. However, successful projects are likely to have a higher proportion of cash and in-kind input.

Factors such as the size and/or maturity of the sector and the nature of the project will impact on what is deemed to be an appropriate level of commitment from the Community of Interest. Projects that receive realistic cash contributions from their Community of Interest, or other parties, relative to their requested SFF investment, will have a stronger case for selection.

Please provide the name(s) and amount(s) of contributions from other sources (including local government, private funds, trusts, etc).

Status of Cash Contributions:

  • Complete the table so assessors can see what stage the project team has reached in securing cash contributions. SFF assessors appreciate that some co-funders are not able to commit funding before the submission date of these applications. However, downstream project approval and contracting will be contingent upon co-funding being secured to the satisfaction of the SFF.
  • Attach correspondence from potential co-funders to the application as evidence of the status of co-funding discussions. This can be in the form of a letter or e-mail from a person with authority to commit funding.

In-kind Contributions

Include details of the in-kind contributions in the table "Where Project Funds Will Come From", with a full breakdown of these contributions attached to the application (see Appendix 2 for further details on assessing in-kind).

14. Application Confirmation & Submission

A duly authorised agent of the Community of Interest or Applicant Group must submit the application electronically to sff@maf.govt.nz by Monday 10 March 2008.

Important Submission Notes:

  • Applications received after this date will not be considered.
  • Put your project title in the ‘subject’ line of your submission e-mail.
  • Include all the requested documents (application form, co-funding confirmation, detailed budget and trial outline or methodological design where applicable)
  • Hardcopies are not required. Only electronic submissions will be accepted.
  • By submitting the application, the agent is undertaking that the information provided is true and correct. The applicant is also acknowledging that the assessment process is both relative and subjective, and therefore agrees to accept MAF’s authority as the final decision-maker.

Contact for Enquiries

Process Coordinator
Sustainable Farming Fund
Ministry of Agriculture & Forestry
PO Box 2526
Wellington
Phone:  0800 100 087
Email:  amanda.hall@maf.govt.nz

Appendix 1: Definitions for Project Costs

Personnel: wages/salaries, including associated costs like PAYE, insurance, etc., UNLESS included under consultants and contractors.

Administration: office costs other than wages (e.g., rent/lease of offices and office equipment, power, phone, stationery, photocopying, printing other than for dissemination costs, etc.) UNLESS included under consultants and contractors.

Consultants & Contractors: ANY payments made to consultants and contractors.

Rental & Leasing of Equipment: plant, vehicles, laboratories (and equipment), etc., UNLESS included under consultants and contractors.

Overheads: anything not covered in specified costs but too small to split into “Other” (i).

Travel & Accommodation: Costs for travel and accommodation related to the project (but NOT travel costs associated with dissemination of results) UNLESS included under consultants and contractors.

Dissemination Costs: Includes costs of field-days, seminars, printing and distributing reports and booklets, etc., including associated travel, UNLESS included under consultants and contractors.

Financial/Legal Expenses: Payments to accountants, auditors, lawyers, etc.

Other: Any major cost items not already attributed within (a) - (h).

Appendix 2: Valuing and Specifying "In-Kind" (Non-Cash) Project Contributions

For a contribution to count as "in-kind", the contributor should incur actual and real costs resulting from being directly involved in the project. This does not include any stand-down time of equipment or laboratories or the cost of personnel and/or equipment undertaking activities that form part of their normal day-to-day duties (i.e., doing something that would be done anyway, but that also forms part of the project, like ploughing a field and sowing a normal crop, part of which then becomes a trial plot.)

For in-kind personnel costings, reasonable commercial rates should be used as a guide. If there are no commercial rates available, please use the following guidance:

Personnel - Personnel should be valued at rates that allow for overheads, administrative costs and local travel expenses, which form part of the work done by an individual. These expenses cannot be claimed separately. Personnel rates are:

Rate A: $75 per hour for technical, scientific expertise or professional advice (council officers, engineers, accountants, etc);

Rate B: $25/hr for general labour, administration and those not covered by Rate A.

Project support costs - These should be valued at the lower of actual cost or market value (e.g., cost of hire) and are restricted to the following costs:

  • meeting or workshop costs, such as room or hall hire and catering; and
  • the provision and use, in a directly beneficial and necessary way, of particular capital equipment or facilities - such as machinery and laboratories. Where these are necessary, their assessed value must be based on actual costs (excluding profit and capital charges) or an equivalent “contracted in” service, whichever is the lower cost.

Examples of "In-Kind" Budget Specification

(1) Widget Makers of NZ

In-kind Costs

FY1

FY2

FY3

Total

Personnel, technical @ $75/hr

8,400

8,400

3,000

19,800

Personnel, admin/labour @ $25/hr

800

800

800

2,400

Travel & Accommodation

1,200

1,200

1,080

3,480

Dissemination Costs (CD distribution)

    

1,080

1,080

Sub-Total In-Kind Costs (includes GST)

10,400

10,400

5,960

26,760

(2) MYOB Discussion Group

In-kind Costs

FY1

FY2

FY3

Total

Personnel, technical @ $75/hr

14,400

5,625

9,375

29,400

Personnel, admin/labour @ $25/hr

1,800

425

250

2,475

Tractor Time

2,300

1,250

3,500

7,050

Seed

900

900

  

1,800

Dissemination Costs (workshops)

    

600

600

Sub-Total In-Kind Costs (includes GST)

19,400

8,200

13,725

41,325

(3) Tekapo University

In-kind Costs

FY1

FY2

FY3

Total

Personnel, technical @ $75/hr

3,750

1,350

3,750

8,850

Personnel, admin/labour @ $25/hr

875

450

100

1,425

Travel & Accommodation

700

350

1,200

2,250

Sub-Total In-Kind Costs (includes GST)

5,325

2,150

5,050

12,525


1 SFF considers the eligibility of applications on a project-by-project basis. Potential applicants are encouraged to discuss their project ideas with the SFF if they are at all unsure of their eligibility status.

2 As a Government agency, MAF is required to supply all information it holds in compliance with the Official Information Act.

3 Note that this is a change from earlier SFF rounds where the Grantee or Applicant Group owned any IP. The change provides greater flexibility to MAF to ensure the IP is used to maximise benefits for New Zealand land-users. It does not alter the SFF’s fundamental/default policy of making SFF information available as widely as possible within New Zealand’s primary industries.

4 The Project Funding table is an Excel spreadsheet, to enter figures double click on the table. When you have finished entering the figures – click outside of the table.

Contact for Enquiries

Fund Administrator
Sustainable Farming Fund
Ministry of Agriculture and Forestry
PO Box 2526
Wellington

Tel: 0800 100 087
Fax: 04 894 0741
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