The seventh tranche of the targeted, agricultural, modernisation, scheme (TAMS) II is due to close for applications this Friday 30 June. The eighth tranche of the scheme will open the following day for applications and will remain open for three months, closing on 6 October 2017.

The latest data from the Department of Agriculture shows that over 11,600 farmers have applied to the scheme, which will remain open until 2020. Uptake was very strong when the scheme launched originally, but has eased since.

The scheme provides grant aid for a number of investment items and is designed to help farmers modernise their farms. Under the scheme, individual farmers can apply for grants of 40% on investments up to €80,000 excluding VAT, while eligible young trained farmers can get a grant of up to 60%.

For example, if a young trained farmer successfully applied for grant aid to cover the cost of a shed worth €90,000 excluding VAT, he could be entitled to grant aid of €48,000 (60% x €80,000 – investment ceiling).

Those in farm partnerships can avail of funding up to a ceiling of €160,000 and the grant rate is paid according to the rules mentioned above.

After a tranche closes, the Department evaluates, ranks and assesses all applications received together.

Farmers cannot make a TAMS investment until they receive prior approval from the Department. The time it takes to receive approval was slow when the scheme launched two years ago, but the process has speeded up considerably.

Generally, farm equipment is approved quicker than bigger investments such as farm buildings. This is because buildings require a greater level of checks and analysis before approval can be issued.

Sometimes an application is delayed if details on plans are omitted or need clarification. The Department says farmers should read the terms and conditions carefully before they make an application to ensure they include all the necessary documents.

One of the biggest reasons for applications being rejected in TAMS is because proof of final planning permission was not included with the application.

In the first quarter of 2017, 281 planning permissions were granted by local authorities for new farm buildings, the latest figures from the Central Statistics Office (CSO) show. This is back 148 permissions on the first quarter of 2016, when some 429 were granted.