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DAERA has effectively ruled out a third tranche of the Tier I capital grant scheme until ministers are in place at Stormont to sign off funding.
A budget of £40m was initially approved for two tranches of both Tier I and II in 2016. A total of £7.5m was earmarked for each Tier I tranche, with £15m for the first tranche of Tier II and £10m for the second.
Tier I provided grant funding for equipment and machinery costing between £5,000 and £30,000, whereas Tier II was for larger construction-type developments with up to £250,000 of grant funding available for individual projects.
A second tranche of Tier II is not expected in the foreseeable future until issues surrounding ammonia emissions and planning permission for agricultural buildings are resolved.
There is no correlation between a possible third tranche of Tier I and the operation of the second tranche of Tier II
However, reports have been circulating that DAERA officials are working on a third tranche of Tier I, with the eligible item list being revised to incentivise the uptake of low-emission slurry spreading equipment.
On enquiry, a DAERA spokesperson said that a third tranche of Tier I would not be using the unspent budget which was originally allocated for the second tranche of Tier II.
“There is no correlation between a possible third tranche of Tier I and the operation of the second tranche of Tier II,” the spokesperson said.
They also indicated that DAERA officials would not be signing off new Tier I funding which is outside the initial £40m approved in 2016.
Signing off new funding for projects is usually the job of Stormont ministers.
The DAERA spokesperson pointed to guidance published last year on the running of departments in the absence of ministers.
It states that civil servants can only conduct ministerial tasks if it is in the public interest.
With spending pressures across all NI departments at present, DAERA officials are unlikely to be prepared to sign off new grant funding for farmers in the absence of a minster.
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