THE rural economy in the Enterprise M3 Local Enterprise Partnership (LEP) area is set to benefit from a £3.6m boost from the European Agricultural Fund for Rural Development.

Businesses in rural areas across most of Hampshire and parts of Surrey are being invited to submit interest. It is part of the European Structural and Investment Funds programmes.

Three priority areas for the funding programme include food processing, rural business development and rural tourism infrastructure. A total of £881,000 will be available in small grants of between £50,000 and £170,000 for businesses in the food processing sector to drive growth and support innovation.

Similarly, £881,000 in grants, also ranging from £50,000 to £170,000, will be available as capital investments to develop rural tourism.

The largest share of £1.8m has been allocated to rural business development to help new and expanding businesses grow.

Zoe Gray, chairman of the Enterprise European Structural and Investment Funds committee, said: “I am delighted by the launch of this new European Agricultural Fund for Rural Development call in support of the rural business sector within Enterprise M3 LEP area.

“This will build on the benefits already being derived by several businesses that successfully applied for earlier calls of the European Structural and Investment Funds programme.

“Rural locations within Enterprise M3 area, contribute about 15 per cent of our economic output, so it is really important that rural businesses get the support they need to grow and maximise productivity.

“These small grants can be used to build new tourism visitor facilities, or for capacity expansion. For example, the first round of European Agricultural Fund for Rural Development calls helped a winery to develop a new wine cellar, and an artisan farm was able to improve organic processes in goat cheese fabrication.”