Grants to be made
3.—(1) Subject to the provisions of this Scheme, the Scottish Ministers may make a grant under this Part of this Scheme to a crofter or eligible occupier towards the approved cost of any project or part of a project of a kind specified in the Schedule to this Scheme (except where the purpose of a project is to replace an existing asset) carried out for the purpose of aiding and developing agricultural production for one of the following purposes:–
(a)to reduce production costs;
(b)to improve and redeploy production;
(c)to increase quality;
(d)to preserve and improve the natural environment, hygiene conditions and animal welfare standards;
(e)to promote the diversification of agricultural activities
in the case of a crofter or on behalf of a crofter, on the croft and, in the case of an eligible occupier, on the croft or holding or part of a croft, as the case may be, occupied by that eligible occupier.
(2) The Scottish Ministers may determine in each financial year the amount of grant payable–
(a)nationally;
(b)for specific areas as determined by the Scottish Ministers; or
(c)for specific activities as defined by the Scottish Ministers.
(3) The Scottish Ministers may refuse an application for grant solely on the grounds that to approve that application would result in the amount determined under paragraph (2) nationally, for the specific area or for the specific activity being exceeded.
(4) For the purpose of this paragraph, “approved cost” shall mean the cost approved for the purposes of a grant under this Part of this Scheme and comprising the aggregate of–
(a)the expenditure reasonably incurred by the crofter or eligible occupier in respect of materials required for the purpose of carrying out the relevant operation; and
(b)such other sum as the Scottish Ministers may deem reasonable.