Reference prices that are used to set maximum grant rates under the Tier 1 scheme are lower than the actual prices that are being quoted by suppliers, a new survey has found.

The Irish Farmers Journal obtained quotes from local machinery suppliers for popular items that are available under the £10m scheme and compared it to the reference prices set by DAERA.

For most items, the reference prices were significantly lower, which means applicants will not be able to obtain the maximum grant rate of 40%.

In addition, many farmers are also likely to apply for a lower grant to obtain “value for money” points which helps prioritise applications if the scheme is over-subscribed.

Our survey found the popular 4.3m livestock trailer with decks is currently priced at £10,200, whereas DAERA’s reference is £7,230. It means the maximum grant of £2,895 only covers 28% of the total cost.

Rubber slat mats have a reference price of £55.50/m2, but our quote from a local supplier was £65/m2, so the grant would cover 34% of the cost.

The same grant rate was available for a 2,000gal slurry tanker and 9m dribble bar. The reference price is £26,730, but the outfit was quoted at £31,000.

These things are changing all the time, so it is very difficult to set an accurate marker down

The percentage grant rate for more expensive slurry equipment priced over £30,000 is likely to be lower again. This is because Tier 1 has reference prices capped at £30,000 which means the maximum available is £12,000.

However, reference prices for less costly machinery are also being called into question. Our quote for a 13m3 diet feeder of £21,000 compares to a £16,345 reference price and equates to a grant rate of 31%.

The Tier 1 grant would cover 30% of the cost for a six-rotor grass tedder and the grant rate for a bale splitter is 34%, according to quotes received by the Irish Farmers Journal.

Our survey also found the grant covers 30% of the cost of an EID sheep race reader and works out at 33% for a portable sheep handling unit with no weighbridge.

Quality and spec

Quotes from suppliers are also dependent on the quality and specification of the item in question.

For example, one local equipment supplier recommended a mobile cattle crush with a weighing platform that cost £6,145. This compared to DAERA’s reference price of £3,790, which would allow a 25% grant rate on the outlined quote.

However, the same supplier had other lower-spec crushes available with the cheapest coming in at £3,400, which is less than DAERA’s reference price.

Likewise, the available grant covers 34% of our quote for cow cubicles with mattresses. But it more than covers the maximum 40% grant rate quoted for cow cubicles with rubber mats.

Speaking at a farmer meeting in Co Down on Tuesday, Agriculture Minister Edwin Poots indicated that reference prices for Tier 1 items would not be reviewed despite the widespread discrepancies.

“The department seeks to get it as accurate as possible. These things are changing all the time, so it is very difficult to set an accurate marker down, especially given the recent fluctuations in prices,” he said.

Minister Poots also pointed out that the Tier 1 grant is available on a competitive basis, so bidding for less than 40% of DAERA’s reference price could work out beneficial if the scheme is over-subscribed.

“I know some people missed out the last time because they bid 40% but others were successful because they put in for a different figure,” he added.