‘Huge gulf between TAMS and actual costs’

Farmers are being forced to shelve building projects on their farms due to the massive gulf between actual building costs and the Department of Agriculture’s reference costs for the TAMS scheme.

That’s according to Fianna Fáil Senator Paul Daly, who called on Agriculture Minister Charlie McConalogue to undertake an immediate review of the Department’s reference cost.

“It is too expensive and is not feasible for many farmers to carry out necessary projects, which would benefit not only their lifestyles and workloads, but also the environment and the welfare of their animals,” he said.

Mr Daly raised the case of one farmer who is developing a shed and said the Department estimates the project would cost in the region of €63,000.

“After a lot of negotiation, price comparison, haggling and so on, the cheapest he can get that job done for is €93,000. That is a massive gulf,” said Mr Daly.

“The difference in the 60pc grant on the Department costing and what the farmer will spend means it is more like he will be getting a 41pc grant.

“There is a difference for him in what he will spend of more than €17,000.”

Mr Daly said the gap was so large, he conducted his own research and found similar results.

“I did some research yesterday with a concrete company. The last time these prices were reviewed, one could buy a cube of 35N concrete for anywhere between €65 and €75. That is now coming in at between €120 and €130 per cube. That is an increase of 80pc.

“When I inquired on pricing in the steel side of things, which would be the second biggest component in any shed development project, the increase since the last review in 2021 is anywhere between 25pc and 30pc for cladding, steel and all of the major inputs,” he said.

Projects could be shelved because of the extra cost, Mr Daly said, adding: “We do not want a situation where necessary development that will improve the lot of farmers and the welfare of their flocks and that of the overall environment is delayed.”

Minister McConalogue said he accepted the senator’s point — as the scheme moves forward, it must be reflective of costs.

Updated

“The costs are coming in for those who were in tranche 1 and were assessed and updated before TAMS 3 was launched,” said Mr McConalogue.

“We are just starting to get the cost assessments from those who got grant approval and proceeded with work. As those returns come in, they will be assessed to see what the evolving situation is on the ground, with a view, as the year moves on and as we receive more returns, to updating the reference costs, as has been done previously over the long history of TAMS.”

However, the minister also said any change that may be made over the next couple of months, including updated reference costs, will apply to future applicants only.