Inflation in the cost of concrete, and the additional cost from the Defective Concrete Product Levy, are pushing costings under the Targeted Agricultural Modernisation Scheme (TAMS) “into fantasy land”.
That’s according to the Irish Creamery Milk Suppliers’ Association (ICMSA), which said that some farmers are “no longer even considering TAMS” due to the costings.
Pat O’Brien, the association’s Farm Business Committee chairperson, said: “TAMS costings, [which have been] obsolete and demonstrably out of step with real costs for the last five years, are now being pushed on by concrete inflation and the mica levy into a fantasy land that has them completely detached from any semblance of reality.
“TAMS costings were drifting into unreality but it must be obvious to everyone by now that the grant paid on TAMS is way off the 40% level for farmers and the 60% for young farmers.”
O’Brien called on Minister for Agriculture, Food and the Marine Charlie McConalogue to “immediately initiate a review” of TAMS references costs, to be competed by August 1, that address the inflation in costs.
“That must result in increased reference costings and those must be applied to existing projects under construction. It’s just unacceptable and misleading to be telling farmers that they are getting a 40% or 60% grant when the reality is completely different,” O’Brien added.
The ICMSA representative also called on the minister to publish the methodology used in reviewing the reference costs, and itemise specific costings used for specific items, such as a cubic metre of concrete.
“The minister should publish the price used so farmers can judge themselves whether the real costs of construction are being taken into account when setting the TAMS reference costs,” O’Brien said.
He said that Minister McConalogue should work to “move the much-criticised scheme onto a consistent and formalised basis that address specific reference costs in a meaningful and realistic way”.
TAMS approvals
In other TAMS news, the Department of Agriculture, Food and the Marine has approved 3,735 (41%) applications made by farmers under tranche 2 of the scheme.
According to the latest statistics provided by the department, 4,792 out of a total 9,110 applications were deemed “in progress” up to Tuesday (May 7).
The data shows that 380 tranche 2 applications have been refused to date, while 193 have been withdrawn. Tranche 2 closed for applications on January 19.
Tranche 3, which closed for applications last month, saw 3,802 applications lodged. Tranche 4, which is currently open, will close for applications on September 6, while tranche 5 will close on December 6.