In June 2015, the Department of Agriculture announced the opening of TAMS II (the second targeted agricultural modernisation scheme). TAMS is a grant scheme through which farmers are paid 40% grant aid towards the cost of pre-approved completed investments up to a total investment of €80,000. This increases to 60% for young, trained farmers. The investment ceiling doubles for farmers who are participating in a registered partnership.

The dairy equipment scheme is part of TAMS II. This covers investments such as milking machines – including robotic and rotary machines, milk storage and cooling equipment, plate coolers, water heating, meal feeding systems and meal bins.

All of the TAMS schemes are divided into a series of three-month tranches where farmers can make online applications for investments. Currently, the fourth tranche is open for applications and this will close at the beginning of October. The fifth tranche will open immediately after the fourth tranche closes.

The scheme is due to run until 2020 and there is a total budget of €395m set out between now and then. When a tranche closes, all of the applications in that tranche are subject to an administrative check and must be analysed to make sure the correct paperwork accompanies the applications, the costings are correct and any other relevant information is included. The applications then go through a ranking system. If all the information is correct and there are no issues with the application the Department will issue notice of approval. The length of time taken by the Department to issue approvals to start work for investment applications has been very slow up to now. However, the Department has finalised an online approval system and the process has speeded up significantly since. Farmers who make applications through the dairy equipment scheme should expect to receive approval earlier than other schemes. This is because the majority of investment items are straightforward with less accompanying paperwork to slow down the approval process.

For a successful application, it is important to avoid these common errors:

  • A common problem that is arising now, according to the Department, is where people are applying for a new dairy parlour in an existing shed that was built outside of Department specifications. There is no problem with building the parlour in an existing shed – however, the issue that can happen if the shed is built outside Department specifications is that there may be an internal agitation point in that shed. According to the Department, if the investment item (eg the dairy parlour) has a common airspace with the internal agitation point, it cannot be grant-aided.
  • Make sure to include all the supporting documents such as farmyard sketches and detailed drawings, if required.
  • In the case of some young farmers who apply under the Young Farmers Capital Investment Scheme (YFCIS), they may have already been a member of a milk production partnership and fall outside the five years date of setup and so they will not be eligible for the YFCIS and the higher rate of grant aid.
  • There is a minimum investment rate of €2,000 per application.