Outcome of TAMS reference cost review due later this year

Independent TD for Offaly, Carol Nolan has said there is growing frustration among farmers regarding the lack of definitive clarity around the review of Targeted Agriculture Modernisation Scheme (TAMS 3) reference costs that is currently under way.

Deputy Nolan was speaking after a parliamentary reply she received on the matter from the Minister for Agriculture, Food, and the Marine, Martin Heydon "merely confirmed that that the completion of the review is envisaged to take place sometime in late 2025".

The independent TD asked the minister if consideration would be given to increasing the grant amount available for slurry and septic tanks, given the increase in costs for the material relating to their construction since the last review of reference costs took place.

“I recently met with a delegation from Offaly IFA [Irish Farmers' Association] to discuss a range of issues currently impacting farms and farm incomes and this is just one of the concerns that we spoke about,” Deputy Nolan said.

“The fact of the matter is that the grant reference costs currently in place have just not kept pace with the actual cost of operating a farm and that needs to change. The grants percentages need to change to reflect that.

“We need more than a commitment from the [agriculture] minister that the review will possibly be completed. We need certainty," she added.

The Offaly TD has stressed that farmers are facing ongoing and significant costs regarding energy prices and carbon tax in the context of a volatile international situation and EU/US tariffs.

“Updating the reference is the least the department can do to mitigate some of the concerns that exist,” Deputy Nolan added.

In his parliamentary response, Minister Heydon stated: "The Targeted Agriculture Modernisation Scheme (TAMS 3) provides grant aid to farmers to build and/or improve a specified range of farm buildings and equipment on their holdings.

"In January this year, I introduced an enhanced grant rate and a dedicated ceiling for nutrient storage investments. This 60% grant rate is open to all farmers, who submit applications in respect of slurry storage, commencing in the tranche which opened on January 23, 2025.

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"Farmers should apply, as appropriate, through either the Animal Welfare Safety and Nutrient Storage Scheme, Organic Capital Investment Scheme, Women Farmer Capital Investment Scheme or Young Farmer Capital Investment Scheme."

The minister explained that the reference costs that are used to inform the setting of grant aid levels are "reviewed periodically" to ensure that they reflect actual/market costs for the construction of farm buildings and facilities, and farm equipment.

"To achieve this objective, reviews of reference costs are based on a comparison with receipted costs. A review of reference costs is currently under way, and it is envisaged that this will be completed in late 2025."

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