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01 Jun, 2018

Targeted Agricultural Modernisation Scheme – TAMSII Closing Date Next Tranche 8th June.

All of the main farming sectors – Dairy, Beef, Sheep, Tillage, Pigs & Poultry farmers are now also able to avail of the grant for on specific equipment – TAMSII. The closing date for this round of applications is Friday 8th June.

While profitability in farming remains volatile across all sectors as price rise and fall from year to year, grants on farm capital investment are very attractive for all farmers. All of the main farming sectors – Dairy, Beef, Sheep, Tillage, Pigs & Poultry farmers are now also able to avail of the grant for on specific equipment – TAMSII.

The grants available are 40% of €80,000 and this increase 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 increase 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.

The scheme opens and closes on a three month tranche bases. The next tranche closes on Friday 8th June. Farmers are advised to have their applications in by that date if the plan to build / purchase buildings / equipment over the summer months.

The following tranche after the 8th June will open on the 9th June and close late August / early September. While a farmer won’t miss out being able to apply for TAMSII, however by applying in the wrong tranche it could delay their investments / time scale for their investment proposal. I.e. if a farmer applies for TAMSII post 8th June, they will in all probability not be approved until Oct / Nov which significantly raises the possibility of building over the winter months.

Beware! Don’t rush the decision on an 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. Cash flow Pressures

  • Have you adequately financially planned the investment?

  • If borrowing have you the required borrowing capacity?

3. Tax Planning Issues

  • Value Added Tax(VAT)

  • Income Tax

  • Capital Repayment Trap