Cow number caps for dairy farmers under the Young Farmer Capital Investment Scheme (TAMS 3), aim to encourage 'green' investments.

This was according to the Minister for Agriculture, Food and the Marine, Martin Heydon, responding to questions from Deputy Michael Cahill during a Dáil Éireann debate on agricultural schemes.

The European Commission required that all investment interventions under the current Common Agricultural Policy (CAP) Strategic Plans "be focused on 'green' investments, which are environmental, animal welfare and biodiversity related", he said.

Deputy Cahill asked Minister Heydon whether TAMS 3's herd-size limits and grant recoupment provisions had been assessed to ensure that young dairy farmers will not be unfairly penalised for expanding after investing in essential milking infrastructure?

Government priorities

In his reply, Minister Heydon said "the conditions that currently apply ensures that TAMS 3 is better aligned with government priorities of delivering environmental public good outputs".

He added that Ireland’s needs assessment for the CAP strategic plan "identified the need to increase environmental efficiency in the agricultural sector, through on-farm investment and the adoption of new technologies".

It also highlighted the need to "support young farmers in accessing finance so they are in a better position to invest in and develop their farm enterprise", while improving animal health and welfare, and farm safety.

Herd restrictions

He explained that the restriction on cow numbers only applied to two specific investments under the milking machine investment: Robotic milking machines and cluster units. 

"Only farmers with between 121 and 160 dairy cows are required to submit a 'herd expansion limitation letter' at the time of [their] application to confirm that they will not expand their herds for the relevant period. 

"If this agreement is breached and the dairy herd size increased during five years post payment of grant-aid for milking machine investments, recoupment of grant aid will be applied."

The rates will be as follows:

An increase of fewer than five dairy cows: 0% recoupment of milking machine investment;
An increase of more than five and less than 10 dairy cows: 25% recoupment of milking machine investment;
An increase of more than 10 and less than 15 dairy cows: 50% recoupment of milking machine investment;
An increase of more than 15 dairy cows: 100% recoupment of milking machine investment.

According to Minister Heydon, the average dairy herd consisted of 90 dairy cows. 

"[It] is consistent with other policies that are supporting the improvement of the sustainability of our dairy herd, and to ensure the continuance of Ireland's nitrates derogation, he said. 

"On that basis, I have no plans to change the limits relating to dairy investments at this time."

Minister Heydon highlighted the success of the scheme to date, with eligible young farmers having received €23.4 million from TAMS 3 across diverse investments.