Budget 2021 contained positive news for the future of the Targeted Agricultural Modernisation Scheme (TAMS II) with €80m allocated to the scheme. The funding is similar to what is currently allocated to the scheme for 2020.

Minister for Agriculture Charlie McConalogue has stated that this funding will be used to cover existing commitments along with ensuring there will be additional tranches opened in 2021. There could, however, be changes to the scheme coming down the line with the minister divulging that a review of the current TAMS model, and specifically the measures contained within it, has been completed by his Department.

Commitment

He says that he will consider the results of this review in time but reiterated his commitment that there will be a TAMS scheme open for applications in 2021.

Surge in applications

The news is likely to reduce the pressure on farmers and advisers to get applications submitted before the end of 2020. There were fears that a lack of clarity on the future of TAMS would lead to a surge in applications for the last two remaining tranches of TAMS II. Tranche 19, which is currently open for applications, will close on 31 October while tranche 20 is reported as running from 1 November to 31 December 2020.

Recent tranches have been significantly oversubscribed due to a combination of greater appetite from farmers in making investments and fears over future opportunities for grant aid.

Greater clarity on unspent funds will also come to light towards the end of 2020

Tranche 18 had 4,914 applications put forward for consideration, of which some 1,466 applications or 30% of total applications were carried forward from tranche 17.

Tranche 19 will have a similar carryover of applications with the IFA recently reporting that 3,282 farmers are due to receive approval to complete works or purchase equipment under trance 18 leaving 1,406 applications carried forward to tranche 19.

Greater clarity on unspent funds will also come to light towards the end of 2020, when many of the initial approvals with a two- to three-year window for carrying out works reach their deadline for conclusion of works.

It is thought a percentage of these approvals will not follow through to completion and could free up some additional funds.

Payments progress

The level of submissions for payment and funds paid to farmers has been increasing in recent weeks. A total of €1.554m was paid to 141 farmers last week, which is a significant increase on the €1.252m paid in the previous week.

The number of farmers now paid stands at 16,730, with 1,144 applications currently being processed. This is a significant increase from 906 applications awaiting approval for payment in the previous week.

The total number of approvals issued to date under the scheme stands at 31,843.