“Farmers should complete their Targeted Agricultural Modernisation Scheme (TAMSII) applications online with the Department of Agriculture by 8th June if they plan to build or purchase buildings or equipment over the summer months. Rushing investment decisions is never a good idea so farmers should take the time to plan and make the right investment for their farms.” – Tom Doyle, Head of Wicklow IFAC office.
IFAC, the accountancy and financial advisory firm, is reminding farmers in Wicklow that the current tranche of the Targeted Agricultural Modernisation Scheme (TAMSII) is closing for applications on Friday 8th June. All the main farming sectors – Dairy, Beef, Sheep, Tillage, Pigs & Poultry farmers – are able to avail of the grant for specific equipment under TAMSII.
Tom Doyle, Head of Wicklow IFAC office said, “While profitability in farming remains volatile across all sectors as prices rise and fall from year to year, grants on farm capital investment remain very attractive for all farmers. The grants available are 40% of €80,000 and this increases to 60% if an applicant is a Young Trained Farmer (must apply through YFCIS). Registered farm partnerships also allow for a “double” ceiling of a grant claimable on a total spend of up to €160,000.”
Tom added, “The Low Emissions Slurry Equipment grant is another grant that is often forgotten about. The grants available on certain slurry spreading equipment are 40% of €40,000 and again this increases to 60% if an applicant is a Young Trained Farmer. And registered farm partnerships are allowed an additional ceiling with a total spend of up to €60,000.”
The next TAMSII tranche after the 8th June will open on the 9th June and close late August / early September. If a farmer applies in the wrong tranche it could delay their investments and the time scale for their investment proposal which is better avoided. If a farmer applies for TAMSII after 8th June, they are unlikely to be approved until October or November which will cause major problems for those hoping to build over the winter months.
The following are three key areas for farmers to consider when looking at on farm capital investment, as advised by IFAC:
- Should You Make the Investment?
- Will the capital expenditure give a Return of Investment?
- Cash flow Pressures
- Have you adequately financially planned the investment?
- If borrowing have you the required borrowing capacity?
- Tax Planning Issues
- Value Added Tax(VAT)
- Income Tax
- Capital Repayment Trap