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TAMS III deadlines are approaching: should you apply?
A practical guide to planning your TAMS III investment
With the next closing date for the Targeted Agricultural Modernisation Scheme (TAMS III) set for 5th June 2026, and further tranches closing in September and December 2026, farmers now have a defined schedule of application windows to work with.
However, the availability of multiple deadlines should not prompt rushed decision-making. The right question is not simply whether to apply before a particular closing date, it is whether the investment is right for your farm at this time. This guide sets out the key grant rates and ceilings under TAMS III, and the critical financial and tax considerations every farmer should work through before committing to an investment.
• The next TAMS III closing date is 5th June 2026, with further tranches on 4th September and 4th December 2026.
• A separate TAMS III grant for qualifying slurry and manure storage investments offers 60% grant aid on eligible expenditure up to €90,000.
• Standard TAMS III grants are set at 40% of €90,000, increasing to 60% for Young Trained Farmers and Women in Agri applicants.
• Registered Farm Partnerships can claim grant aid on eligible expenditure of up to €160,000.
• Before applying, every farmer should assess Return on Investment, cash flow capacity, borrowing headroom, and the tax implications of the investment.
• Expert advice from an agri advisor and accountant is strongly recommended before committing to any TAMS investment.
What is TAMS III?
The Targeted Agricultural Modernisation Scheme (TAMS III) is a capital investment grant scheme funded under Ireland's CAP Strategic Plan. It provides grant aid to farmers making approved capital investments in farm infrastructure, equipment, and facilities, with the aim of improving efficiency, environmental performance, and farm safety.
TAMS III is administered by the Department of Agriculture, Food and the Marine, and is structured in tranches with application windows opening and closing at defined intervals throughout the year.
Farmers must submit applications within an open tranche window in order to be considered for grant aid.
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2026 application closing dates
The Department of Agriculture, Food and the Marine has confirmed the following TAMS III closing dates for 2026:
• 5th June 2026
• 4th September 2026
• 4th December 2026
The availability of a full schedule of closing dates means farmers are not under pressure to apply for one specific window. This is important because it means there is time to plan the investment properly rather than rushing a decision to meet an imminent deadline.
Grant rates and investment ceilings
TAMS III contains a number of distinct grant categories, each with its own rates and eligible expenditure ceilings.
The combination of multiple grant categories, rates, and ceilings makes TAMS III a more complex scheme to navigate than in previous iterations. Seeking expert guidance is essential to ensure you are applying under the correct category and maximising your entitlement.
The principal categories are as follows:
Slurry and Manure Storage Grant (2025 tranche rate, still in effect)
A separate TAMS III grant applicable to qualifying slurry and manure storage investments remains in effect from the 2025 tranches. This grant is ring-fenced from all other TAMS III grants and offers the following:
• Grant rate: 60% of eligible expenditure
• Eligible expenditure ceiling: €90,000
• Maximum grant: €54,000
Qualifying investments under this category include:
• Manure pit (60%)
• Mass concrete tank, including precast tanks (60%)
• Circular slurry stores (60%)
• Geo membrane lined store (60%)
Standard TAMS III Grant
For all other qualifying investments under TAMS III, the standard terms apply:
• Grant rate: 40% of eligible expenditure
• Eligible expenditure ceiling: €90,000
• Maximum grant: €36,000
Young Trained Farmer and Women in Agri (enhanced rate)
Applicants who qualify as a Young Trained Farmer, or who are applying under the Women in Agri category, are entitled to an enhanced grant rate:
• Grant rate: 60% of eligible expenditure
• Eligible expenditure ceiling: €90,000
• Maximum grant: €54,000
Registered Farm Partnerships (increased ceiling)
Farmers operating through a Registered Farm Partnership are eligible for a higher eligible expenditure ceiling:
• Grant rate: 40% (or 60% if qualifying categories apply)
• Eligible expenditure ceiling: €160,000
• Maximum grant: €64,000 (at 40%) or €96,000 (at 60%)
"At ifac, we always advise farmers to get expert advice to help you decide on the right investment at the right time rather than rushing the decision for your farm."
Philip O’Connor, Head of Farm Support, ifac
Key considerations before applying
Before committing to a TAMS III investment, every farmer should carefully work through the following areas with their agri advisor and accountant:
1. Return on investment
The availability of a grant does not in itself justify the expenditure. The fundamental question to ask is: will this capital investment generate a sufficient return for the farm business?
• Will the investment reduce costs, increase output, or improve efficiency in a way that is financially measurable?
• Is this the right time to make this investment, given the current and projected financial position of the farm?
A TAMS grant reduces the net cost of an investment, but a poorly timed or unsuitable investment remains a poor investment even with grant support. The decision should be driven by the farm's strategic and financial needs, not by the existence of an upcoming deadline.
2. Cash flow planning
TAMS III operates on a grant-in-arrears basis, meaning the farmer must fund the full capital cost upfront and claim the grant after the work is completed and approved. This has significant cash flow implications:
• Have you adequately financially planned the investment, including the timing of expenditure and grant receipt?
• If borrowing is required, do you have the necessary borrowing capacity and have you secured appropriate finance?
Cash flow planning should account for the period between incurring the capital cost and receiving the grant payment, which can be a number of months. Farmers should discuss this with their accountant before proceeding.
3. Tax planning
A TAMS III investment has a number of potential tax implications that should be considered in advance:
• VAT: VAT is generally recoupable on qualifying farm buildings and equipment through the Revenue flat-rate farmer scheme or VAT registration, but the specific treatment should be confirmed for each investment.
• Income Tax: Capital allowances may be available on qualifying expenditure, affecting your income tax position in the year of investment and subsequent years.
• Capital Repayment Trap: Where borrowings are used to fund the investment, the after-tax cash cost of capital repayments must be carefully planned. If the timing of tax relief does not align with loan repayments, a cash flow shortfall can arise, sometimes referred to as the capital repayment trap. Farmers should model this with their accountant before committing to borrowings.
Consider a farmer who is considering investing in a new circular slurry store at a cost of €80,000 (excluding VAT). The investment qualifies under the ring-fenced slurry storage grant category, which offers 60% grant aid on eligible expenditure up to €90,000.
In this scenario:
• The grant payable would be €48,000 (60% of €80,000), reducing the net cost to €32,000 before tax reliefs.
• The farmer must fund the full €80,000 upfront and claim the grant after the work is completed and approved.
• If borrowings are used, the farmer must ensure that the loan repayment schedule is manageable during the period before the grant is received.
• Capital allowances may be available on the expenditure, further reducing the effective after-tax cost of the investment.
• VAT on the construction cost may be recoupable, depending on the farmer's VAT status.
Before proceeding, the farmer should confirm with their agri advisor that the investment qualifies under the correct TAMS III category, and with their accountant that the cash flow, tax, and borrowing position has been fully assessed.
Given the availability of three closing dates in 2026, there is no need to rush the application. If the June deadline does not allow sufficient time to plan properly, the September or December tranches remain available.
FAQs
What are the TAMS III closing dates for 2026?
The confirmed closing dates are 5th June 2026, 4th September 2026, and 4th December 2026. Farmers are not required to apply in the earliest available tranche, the right time to apply is when the investment has been properly planned and assessed.
What investments qualify for the 60% slurry storage grant?
The qualifying investments under the ring-fenced slurry and manure storage grant (at 60% of eligible expenditure up to €90,000) are: manure pits, mass concrete tanks (including precast tanks), circular slurry stores, and geo membrane lined stores.
Can a Registered Farm Partnership claim a higher TAMS grant?
Yes. Registered Farm Partnerships are eligible for a higher eligible expenditure ceiling of €160,000, compared to the standard €90,000 ceiling. The grant rate applicable depends on the category of investment and whether enhanced rates (Young Trained Farmer / Women in Agri) apply.
What is the capital repayment trap and how does it affect TAMS investments?
The capital repayment trap arises where a farmer borrows to fund a capital investment and the timing of income tax relief on the expenditure does not align with the schedule of loan repayments. This can result in a period where loan repayments are due but the corresponding tax saving has not yet been realised, creating a cash flow pressure. Careful tax planning with an accountant before committing to borrowings is essential to avoid this.
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