Milking equipment and storage

Milking equipment and storage were the most popular investment items in the first tranche of TAMS II applications.

In this example, we look at the costs of a 14-unit milking machine, cluster units, an auto washer for the machine, a 9,000-litre bulk tank, a plate cooler, water heater, individual cow feeders, a 10m3 meal bin and meal troughs that might be suitable for a 100-cow herd.

All the costings are shown in Table 1. The figures used were taken from the Department’s website in the reference cost section. The cost of the construction of a new parlour and dairy to house the milking equipment and storage is not included in this example – this would add significantly to the overall cost. Young trained farmers who are more than 18 years and not more than 40 years of age at the date of submitting the application form and meet the requirements of setup for the first time within five years of the date of receipt of an application can apply through the Young Farmers Capital Investment Scheme (YFCIS).

In this scheme, successful solo applicants are eligible for a maximum 60% grant up to €80,000. Where a registered farm partnership contains one qualifying young farmer, grant-aid will be paid at 60%, subject to all qualifying conditions being met, on the first €80,000 and 40% on the remaining balance for a successful application.

Partnership

A non-qualifying YFCIS farmer can apply for grant aid through the Dairy Equipment Scheme and a successful applicant is eligible for the 40% rate up to the investment ceiling of €80,000 or €160,000 in the case of a joint application by two partners under a registered partnership.

The Dairy Equipment Scheme does not cover the construction of the parlour or dairy structure – that is why we excluded the cost in the table because only farmers in the YFCIS are eligible for parlour shed construction.

In this example (Table 1), the total cost of the investment came to €100,914. A farmer successfully applying and completing the work under the YFCIS would be entitled to a maximum grant of €48,000 if applying solo.

If two young trained farmers are in a partnership, they could potentially get a grant of €60,548 through the YFCIS and if one young trained farmer is in a partnership with a non-qualifying farmer they can potentially get a grant of €56,365 for completed work through the YFCIS.

In this scheme, a farmer could potentially get a grant of €32,000 to do the work based on the investments in Table 1. If two non-qualifying YFCIS farmers make a successful application they could potentially get a maximum grant of €40,365 through the Dairy Equipment Scheme.

Main specifications

In all TAMS II works, the Department has strict specifications to be followed. According to the Department, all milking and dairy equipment must be constructed and installed in such a manner which ensures that it is capable of being readily and thoroughly washed, cleaned and disinfected internally and externally.

The installer of the new milking machine must provide a signed certificate indicating that the new machine is installed correctly and fully tested to IMQCS recommendations (see www.milkquality.ie). The certificate must be submitted to the Department before grant aid can be paid.

A certificate for the installation of mechanical and electrical equipment and the necessary ETCI (Electro Technical Council of Ireland) completion and supplementary electrical certs must also be submitted to the Department with the payment claim.

All bulk milk tanks must have a unique serial number and working tank capacity engraved (or printed on a securely fixed plate or securely fixed metal or plastic sticker) on the tank. The grant does not cover secondhand equipment. The rump rail and machine support framework are not grant aided.

There are no grants for retrofitting parts to an existing machine, eg cluster removers, etc.

The grant is for extending a machine with extra units or installing a completely new machine. The grant is calculated on a per-unit basis. If the existing machine has to be upgraded to cope with the extra units, the cost of the upgrade of the existing units will not covered by the grant. In this case it would make sense to go for a grant on a new machine.

To read the full Buildings and TAMS II Focus supplement, click here.