The Targeted Agriculture Modernisation Schemes (TAMS) II is at risk of becoming “irrelevant” due to project costings being out-of-date, a farming organisation has warned.
The Irish Creamery Milk Suppliers’ Association (ICMSA) has, however, welcomed that approvals have begun for all qualified applications received under tranche 23 of the scheme.
Minister for Agriculture, Food and the Marine, Charlie McConalogue, yesterday (December 7) confirmed that payments of over €326 million have now issued in respect of 24,141 applications for completed investments since the opening of TAMS II.
The Department of Agriculture, Food and the Marine (DAFM) said it continues to pay, on average, €1.3 million/week on TAMS II investments, with €1.8 million paid to applicants this week.
TAMS costings
Chairperson of ICMSA Farm and Rural Affairs Committee, Denis Drennan, said the approval of applications was “good news”.
However, he said that the main problem with TAMS is not the processing of applications, but the “completely inadequate and obsolete costings on which the grants were based”.
“ICMSA welcomes the 100% approval rate, but the minister and the department have to know that the main problem with TAMS is the fact that it is becoming irrelevant, because the costings being used have drifted 30% to 40% off the real figures farmers are being quoted for materials and work.”
Drennan said the ICMSA has repeatedly pointed out the gap between TAMS grants and quotes that farmers are getting to department officials.
He said the “TAMS grants are, to be honest, hopelessly adrift”.
Inflation
The ICMSA representative said that inflation on construction materials is burning through current milk prices, which he acknowledged as “decent”.
“Whether it is fertiliser, diesel or concrete, everywhere we look we are coming up against rates of inflation that have actually overtaken what should be a decent milk price.
“The reality is that TAMS is becoming irrelevant in terms of decision-making by individual farmers on whether their individual projects go ahead,” Drennan stated.
He said “if it [TAMS] is to be restored to that previous status and relevance, then it has to be working off realistic figures”.
Drennan said costings will have to be reviewed and raised by around 40% “across the board as soon as possible”.
He said an indication by DAFM that it will be the second tranche of 2022 before new costings are in place is “simply unacceptable”, and added that revised costings needed to be finalised immediately and applied to all outstanding TAMS applications.