TAMS applicants who pay an up-front deposit to a manufacturer in advance of getting Department of Agriculture approval on their application will lose grant aid on the deposit amount.

That has been highlighted by the Department after a number of farmers paid deposits for milking machines and as a result lost out on their TAMS application.

Manufacturers of larger bespoke equipment such as milking machines or steel sheds will often seek a deposit before starting fabrication work.

Department grant schemes have always specified that work commenced or payments made before it gives approval will be ineligible for aid.

The ruling being applied by the Department for TAMS, where a deposit is paid before approval, is as follows:

  • If the deposit is less than 20% of the approved value of equipment or work then the deposit is rejected for grant aid. The balance of the cost is eligible.
  • If the deposit is between 20% and 50% of the approved value, then that work or item is not eligible for any grant aid.
  • If the deposit is over 50% of the value, then the entire application, including any other investment items, is ineligible.

    • Penalising farmers

    IFA rural development chair Joe Brady said that, in taking this approach on deposit payments, the Department of Agriculture was unfairly penalising farmers.

    “In light of the Department clarification, IFA is advising farmers who have applied for TAMS and are purchasing items such as bulk tanks, milking machines, or other equipment not to pay a deposit until such a time as they have got written approval for TAMS grant from the Department,” he said.

    Read more

    Full coverage: TAMS II