The ICMSA has called for all TAMS payments to be made immediately and its farm and rural affairs chair Denis Drennan asked that payments also be made for applications that are subject to an inspection.

Drennan said that farmers have outstanding bridging and other investment-related loans to be paid and, notwithstanding the assurances from banks of understanding in these difficult circumstances, if the loans are not paid on schedule, there will an additional financial cost on farmers.

He added that some on-farm investments may have been funded from cashflow, which is now under severe strain on many farms due to the effects of COVID-19.

TAMS payments should be made immediately and the physical farm inspection waived

“We are in unprecedented times and, provided the farmer's paperwork is in order, ICMSA believes that TAMS payments should be made immediately and the physical farm inspection waived.

“The reality is that the vast majority of cases are not physically inspected and this concession therefore does not represent a major change while being a real help to farmers during the current crisis,” Drennan said.

TAMS deadline extension

The IFA has raised its concerns that the extension by the Minister for Agriculture Michael Creed of the closing date of tranche 17 from 24 April to 6 June will curtail investment on farms later this year.

Its rural development chair Michael Biggins has expressed concern that the move could lead to a serious backlog of work.

“It would be more beneficial if the Minister closed tranche 17 as normal and opened tranche 18 as planned. Farmers see no value in extending the date, as it will lead to a serious backlog of work later in the year when the focus should be on getting the rural economy moving when we emerge from the restrictions imposed by COVID-19,” he said.

Farmers see no value in extending the date as it will lead to a serious backlog of work later in the year

Biggins pointed out that many farmers had already made their applications in this current tranche, expecting that Department of Agriculture approval to proceed would be given in the May/June period.

“By extending the closing date, many of these farmers are concerned that they will not get the go-ahead until the autumn, which will leave very little time to complete work before the onset of winter or the start of milking next spring,” he said.

“The 20% carryover of applications from one tranche to another must also be sorted, but the Minister’s move is actually only adding to this problem.”

The IFA man also called for grant payment for completed works to continue.

“Pre-payment checks must be waived so that there are no barriers to payment. The payment of €1.5m per annum must continue, as any delay would have a huge cashflow impact on farms,” said Biggins.

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