Plan before you spend as TAMS deadline looms
GALWAY farmers have been reminded that the deadline for the submission of applications for the next tranche of the Targeted Agricultural Modernisation Scheme (TAMS III) is Friday, April 12 next.
The agribusiness firm, Ifac, has advised farmers that grants available in TAMS III come at a rate of 40% (for up to a €90,000 investment) and 60% if an applicant is a young, trained farmer.
Ifac has also reminded farmers that the Low Emissions Slurry Equipment grant is one ‘that’s often forgotten about’ with a spend of €40,000 (€16,000 grant) allowed for such equipment – or €60,000 (€24,000 grant) for a partnership.
Again, the grant rate of 60% applies for a ‘Young Trained Farmer’ – in those cases the application must be made through the Young Farmer Capital Investment Scheme (YFCIS).
Tom O'Farrell, Partner at Ifac’s Athenry office, cautioned however that the key advice was not to rush a 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. Always get expert advice to help you plan for the future,” said Tom O’Farrell.
He outlined key considerations for farmers to take into account before they decided on any investment. These are:
■ Should you make the investment?
■ Will the capital expenditure give a return on investment?
■ Have you adequately financially planned the investment?
■ If borrowing, have you the required borrowing capacity?
■ Consider the Value Added Tax (VAT), Income Tax and Capital Repayment Trap.
Pictured: Good grants for LESS equipment.