Annual funding for the Targeted Agriculture Modernisation Scheme (TAMS) is expected to boosted to over €90 million under Budget 2027, Agriland understands.

The on-farm capital investment scheme is believed to be among the budget priorities identified by Minister for Agriculture, Food and the Marine Martin Heydon for his department.

As a result, it is understood that the TAMS allocation for 2027 will stand at over €93 million when the budget is announced.

This would represent the largest ever annual budget allocation in on-farm investment.

Funding for TAMS in 2024 stood at €72.27 million, increasing to €86.9 million in 2025 and €88 million in 2026.

It is understood the 2027 funding would focus on helping farmers to invest in additional slurry storage.

TAMS

TAMS, which is spread across 11 sub-schemes, provides grants to farmers to build and/or improve a specified range of farm buildings and equipment on their holdings.

Payments of over €193 million have issued to TAMS 3 participants since payments commenced in 2024.

Over the first eight tranches of the scheme, all valid applications received were approved.

However, given the record demand from farmers, Minister Heydon introduced a ranking and selection system from tranche 9 in order to "manage the remaining budget available for TAMS 3" until the end of 2027.

This approach saw priority given to investments related to farm safety and nutrient storage.

Approvals for other measures, such as the Solar Capital Investment Scheme (SCIS), have been at lower levels in recent rounds, leaving many farmers disappointed.

Minister Heydon previously confirmed that over 20% of the TAMS budget had been spent on SCIS with the number of applications and level of funding provided exceeding expectations.

A total of 69,593 applications were submitted in the first twelve tranches of the scheme. While an additional 3,910 applications were made under tranche 13.

Budget 2027

Tánaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers will unveil Budget 2027 in the Dáil this afternoon (Tuesday, October 6).

Minister Harris previously indicated that the budget will provide supports to farmers who are continuing to face soaring fuel and fertiliser costs.

This is expected to include an extension to the Fuel Income Support Scheme and a top-up on EU fertiliser supports.

Pressure has been mounting on Minister Heydon to deliver a support scheme for farmers since the €540 million EU Fertiliser Action Plan was approved by member states in July.

Ireland has been allocated almost €15.4 million in emergency assistance which can be made available to farmers. This can be topped up by up to 200% in national funds.

Budget 2027 is expected to see an increase in the base compensation rate offered to farmers whose cattle are impacted by bovine tuberculosis (TB).

It is understood the €3,000 ceiling which currently applies to all TB reactors will rise by €500 to €3,500.

Farm organisations have repeatedly called for the compensation ceiling to be increased to reflect the higher livestock prices seen in recent years.

They have argued that affected farmers are not only suffering the financial and psychological blow of being locked up with TB, but also being underfunded in terms of purchasing replacement stock.

Budget 2027 is also expected to include a doubling of Succession Farm Partnership Scheme annual tax credit to €10,000.

The scheme gives a farmer and their successor a tax incentive where both parties enter an approved partnership which results in the transfer of at least 80% of the farm assets to the successor.

The scheme currently provides for an annual tax credit worth up to €5,000 per annum for a five-year period.