IFAC remind farmers of TAMS II extension

IFAC, the farming, food, and agribusiness professional services firm, is reminding Wicklow farmers that the Department of Agriculture has made a number of extensions to the Targeted Agricultural Modernisation Scheme (TAMS II) deadlines, owing to the ongoing Covid-19 restrictions.

The closing date for Tranche 17 of TAMS has been deferred June 5. This three-month extension on completion deadlines will allow flexibility on all projects due to be completed between March 1 and July 1.

A three-month extension on outstanding TAMS payment claims for projects to be completed by 1 July

Philip O’Connor, Head of Farm Support at ifac, offers the following advice.

‘A derogation is now in place which defers the obligation to complete the now postponed Health & Safety course but allows the applicant to be paid for completed works. This derogation is proposed for a three-month period. These participants will be required to complete a course when courses resume.’

there are a number of grants available under TAMS II, including the Low Emissions Slurry Equipment grant.

Phillip says: ‘The grants available under TAMS II are 40% of €80,000 and this increases to 60 per cent if an applicant is a young trained farmer. Registered farm partnerships also allow for a ‘double’ ceiling of a grant claimable on a total spend of up to €160,000. The Low Emissions Slurry Equipment grant is another grant that is often forgotten about.

The grants available here on certain slurry spreading equipment are 40 per cent of €40,000 and this increases to 60 per cent if an applicant is a young trained farmer. Registered farm partnerships are allowed an additional ceiling with a total spend of up to €60,000.’

The next tranche after June 5 will open on June 6 and is expected to close in late

August (TBC).

‘While a farmer won’t miss out being able to apply for TAMS II if they apply in the wrong tranche, it could delay their investments and the timescale for their investment proposal,’ warns Phillip.

He also urges farmers not to rush the decision on investment for the sake of meeting a deadline.

‘this could be far more costly than delaying your application and making the right investment for your farm. There are three keys areas when looking at a captial investment. Firstly, should you make the investment? Will the capital expenditure give a return of investment.

‘Secondly, consider your cash flow pressures. Have you adequately financially planned the investment?. And if borrowing, have you the required borrowing capacity? Thirdly, review the tax planning issues such as VAT, Income Tax and Capital Repayments.’