Making an on-farm investment can be an expensive endeavour, however the availability of a TAMS II grant aid can be the difference between a farmer making an investment or not. There is a lot of paperwork involved in the scheme but if completed correctly then it has the potential to save farmers a lot of money.
The maximum grant aid available to a general applicant is €32,000 (or 40% of €80,000 investment). A young, trained farmer can avail of a maximum grant of €48,000 (or 60% of the €80,000 investment). If a young trained farmer is in a partnership with a general applicant the maximum grant aid that they will be able to get is €80,000 (40% of €80,000 for the general applicant plus 60% of €80,000 for the young farmer).
The minimum investment that can be made under the scheme is €2,000. It is also important to note that investments are paid on the costs excluding VAT.
So far almost €25m has been paid out to farmers under the scheme with the average payment to a general applicant of €6,927 while the average payment to a young trained farmer is €25,733. Payments to farmers under TAMS are currently issuing at over €1m per week and the budget is available to meet all expected claims this year, according to the Department. The Department has reminded farmers to ensure they apply through the correct scheme in TAMS II as there are several different schemes for different types of investment, including:
Tillage Capital Investment Scheme.Young Farmer Capital Investment Scheme.Dairy Equipment Scheme.Low Emission Slurry Spreading Equipment Scheme.Pig and Poultry Investment Scheme.Animal Welfare, Safety and Nutrient Storage Scheme.Organic Capital Investment Scheme.If a young trained farmer applies for their investment under the Animal Welfare, Safety and Nutrient Storage Scheme they will only be eligible for 40% grant aid, they must apply through the Young Farmers Capital Investment Scheme if they wish to receive the 60% grant aid. This is an issue which is cropping up more often, according to the Department.
To be eligible for the Young Farmer Capital Investment Scheme the applicant needs to be under 40 years of age and qualify as a trained farmer. This is based on the date of the application. The applicant will be ineligible on the day that they turn 40. The Department have also reported issues where young farmers have not submitted the correct education certificates.
Common issues
There are several issues that farmers are coming across when submitting their payment claims which is leading to reduced payments or in some cases rendering the entire claim ineligible. Page 47 highlights the common mistakes that the Department are finding when processing claims.
Issues have been raised where a TAMS applicant pays an up-front deposit for some aspect of the investment before they receive Department of Agriculture approval on their application, this can have serious consequences for the applicant.
The TAMS II terms and conditions state that: “Aid will not be given for works commenced or equipment purchased before written approval has been conveyed to an applicant.” It goes on to state that: “Deposits or payments made prior to the date of approval are ineligible and will be rejected.”
The ruling being applied by the Department for TAMS, where a deposit has been paid before approval has been granted 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.The Department also highlighted the need for applicants to send in their contractor’s tax clearance before any payment claim is made.
Sub investments
Applicants are also being reminded to break their TAMS investment into each sub investment. For example within a cubicle shed there could be four separate sub investments such as:
Slatted and cubicle area over tank.Solid floor area with cubicles.Roofed feed passage.Roofed slatted areas.These must be divided into sub investments as different reference costs will be applicable for each portion of the shed, it is not a one size fits all type of approach. The main investment within an application cannot be changed, however the sub investments can be changed.
Applicants will be given between six and 12 months to complete their works once they receive approval for an application. Changes can be made to the investment between when an application is made and when a payment claim is submitted. If applicants have any issues they are urged to contact the Department in relation to individual claims. They can be contacted on 0761064452 or by email on TAMS@agriculture.gov.ie
The Department urges all farmers who have completed their works to submit their payment claims to the online system as soon as possible before the current TAMS tranche closes on 12 January 2018.
Making an on-farm investment can be an expensive endeavour, however the availability of a TAMS II grant aid can be the difference between a farmer making an investment or not. There is a lot of paperwork involved in the scheme but if completed correctly then it has the potential to save farmers a lot of money.
The maximum grant aid available to a general applicant is €32,000 (or 40% of €80,000 investment). A young, trained farmer can avail of a maximum grant of €48,000 (or 60% of the €80,000 investment). If a young trained farmer is in a partnership with a general applicant the maximum grant aid that they will be able to get is €80,000 (40% of €80,000 for the general applicant plus 60% of €80,000 for the young farmer).
The minimum investment that can be made under the scheme is €2,000. It is also important to note that investments are paid on the costs excluding VAT.
So far almost €25m has been paid out to farmers under the scheme with the average payment to a general applicant of €6,927 while the average payment to a young trained farmer is €25,733. Payments to farmers under TAMS are currently issuing at over €1m per week and the budget is available to meet all expected claims this year, according to the Department. The Department has reminded farmers to ensure they apply through the correct scheme in TAMS II as there are several different schemes for different types of investment, including:
Tillage Capital Investment Scheme.Young Farmer Capital Investment Scheme.Dairy Equipment Scheme.Low Emission Slurry Spreading Equipment Scheme.Pig and Poultry Investment Scheme.Animal Welfare, Safety and Nutrient Storage Scheme.Organic Capital Investment Scheme.If a young trained farmer applies for their investment under the Animal Welfare, Safety and Nutrient Storage Scheme they will only be eligible for 40% grant aid, they must apply through the Young Farmers Capital Investment Scheme if they wish to receive the 60% grant aid. This is an issue which is cropping up more often, according to the Department.
To be eligible for the Young Farmer Capital Investment Scheme the applicant needs to be under 40 years of age and qualify as a trained farmer. This is based on the date of the application. The applicant will be ineligible on the day that they turn 40. The Department have also reported issues where young farmers have not submitted the correct education certificates.
Common issues
There are several issues that farmers are coming across when submitting their payment claims which is leading to reduced payments or in some cases rendering the entire claim ineligible. Page 47 highlights the common mistakes that the Department are finding when processing claims.
Issues have been raised where a TAMS applicant pays an up-front deposit for some aspect of the investment before they receive Department of Agriculture approval on their application, this can have serious consequences for the applicant.
The TAMS II terms and conditions state that: “Aid will not be given for works commenced or equipment purchased before written approval has been conveyed to an applicant.” It goes on to state that: “Deposits or payments made prior to the date of approval are ineligible and will be rejected.”
The ruling being applied by the Department for TAMS, where a deposit has been paid before approval has been granted 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.The Department also highlighted the need for applicants to send in their contractor’s tax clearance before any payment claim is made.
Sub investments
Applicants are also being reminded to break their TAMS investment into each sub investment. For example within a cubicle shed there could be four separate sub investments such as:
Slatted and cubicle area over tank.Solid floor area with cubicles.Roofed feed passage.Roofed slatted areas.These must be divided into sub investments as different reference costs will be applicable for each portion of the shed, it is not a one size fits all type of approach. The main investment within an application cannot be changed, however the sub investments can be changed.
Applicants will be given between six and 12 months to complete their works once they receive approval for an application. Changes can be made to the investment between when an application is made and when a payment claim is submitted. If applicants have any issues they are urged to contact the Department in relation to individual claims. They can be contacted on 0761064452 or by email on TAMS@agriculture.gov.ie
The Department urges all farmers who have completed their works to submit their payment claims to the online system as soon as possible before the current TAMS tranche closes on 12 January 2018.
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