The TAMS grant scheme has led to unexpected cash flow issues for farmers, and a system of split payments for TAMS projects distinct investments would resolve the issue, according to ICMSA.
ICMSA’s Farm and Rural Affairs Committee Chairman, Patrick Rohan, said farmers in general would have submitted one application for TAMS that includes a number of distinct and separate investments on their farm. They must complete all the investments applied for before any TAMS payment is made.
The feedback, Mr Rohan said, from ICMSA members, is that farmers are committed to completing the investments, but split payments are needed to relieve cash flow pressures. For example, he said, a farmer may have applied for a calf house, a loose house, and a silage slab. He or she must complete the three separate investments before any grant is paid.
“If the calf house is completed first, the farmer should be allowed to submit a payment application for the calf house, get paid on it and then proceed with the next phase of investment.” Mr Rohan said split TAMS payments would increase uptake of the TAMS scheme, and would improve the financial viability of farmers’ projects.
It would considerably ease farmer cash flow fears and would free up cash for the next phase of the investment and reduce banking costs. It would also ensure that the annual budgetary allocations for TAMS are better utilised.
“The Department had such a system in place in the past, and it operated successfully,” said Mr Rohan.
Patrick Rohan, ICMSA: says TAMS has led to unexpected cash flow issues for farmers.