Planning permissions for new farm buildings fell 25% last year, the latest figures from the Central Statistics Office (CSO) show.

In 2017, 1,297 permissions were granted for new farm buildings, down on the 1,741 granted in 2016. Some 850 permissions were granted in the south and east of the country, with the remaining 447 granted in the border, midlands and western region.

Breakdown

A quarterly breakdown of the figures shows that planning permissions peaked in the third quarter of 2017, with 378 new farm buildings receiving the green light to begin construction. There were also 198 permissions granted for farm building extensions in 2017.

In 2016, the total planning permissions granted for new farm builds was equivalent to 931,000sq m. In 2017, this figure fell to 820,000sq m.

The fall-off in planning permissions in 2017 can be attributed to two things: dairy expansion and the Targeted Agricultural Modernisation Scheme (TAMS II).

On 1 April 2015, Ireland was released from the shackles of milk quotas which allowed farmers to expand their herd size to increase milk output for greater returns. This also meant, for the farmers who wanted to expand, they now had the option to continue milking with their current machine or upgrade and build a new parlour altogether.

Coinciding with the milk quota abolishment, in June 2015, TAMS II opened to applications, allowing farmers to grant-aid new farm buildings and equipment.

This allowed farmers to apply for a 40% grant for investments with a maximum ceiling of €80,000, including new milking parlours, slatted sheds, slurry pits and other investments.

In order to invest in the majority of farm buildings under the scheme, farmers need to obtain planning permission from their local county council before going ahead with the construction.

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