Ifac advises Tipperary farmers about new TAMS II closing date

Ifac, the farming, food, and agribusiness professional services firm, is reminding Tipperary farmers that the Department of Agriculture has made a number of extensions to the Targeted Agricultural Modernisation Scheme (TAMS II) deadlines, owing to the ongoing Covid-19 restrictions.

The following is attributable to Philip O’Connor, Head of Farm Support at ifac.

New date

The closing date for Tranche 17 of TAMS has been deferred to the 5^th June 2020.

• This three-month extension on completion deadlines will allow flexibility on all projects due to be completed (or approvals due to expire) between 1^st March and 1^st July
• A three-month extension on outstanding TAMS payment claims for projects to be completed by 1 July

• A derogation is now in place which defers the obligation to complete the now postponed Health & Safety course but allows the applicant to be paid for completed works. This derogation is proposed for a three-month period. These participants will be required to complete a course when courses resume.

Grants

The grants available under TAMS II are 40% of €80,000 and this increases to 60% if an applicant is a Young Trained Farmer. Registered farm partnerships also allow for a “double” ceiling of a grant claimable on a total spend of up to €160,000.

The Low Emissions Slurry Equipment grant is another grant that is often forgotten about. The grants available here on certain slurry spreading equipment are 40% of €40,000 and this increases to 60% if an applicant is a Young Trained Farmer (must apply through YFCIS). Registered farm partnerships are allowed an additional ceiling with a total spend of up to €60,000.

Considerations

The next tranche after the 5^th June will open on the 6^th June and is expected to close in late August (TBC). While a farmer won’t miss out being able to apply for TAMS II if they apply in the wrong tranche, it could delay their investments / the timescale for their investment proposal.

Finally, don’t rush the decision on investment for the sake of meeting a deadline; this could be far more costly than delaying your application and making the right investment for your farm. The following are three key areas when looking at a capital investment:

1. Should you make the investment?

• Will the capital expenditure give a Return of Investment?

2. Consider your cash flow pressures

• Have you adequately financially planned the investment?
• If borrowing, have you the required borrowing capacity?

3. Review the tax planning issues

• Value Added Tax (VAT)
• Income Tax
• Capital Repayment Trap.