An underspend in the Targeted Agricultural Modernisation Scheme (TAMS II) may be developing. While some 16,400 farmers applied to the scheme, only 5,484 have completed work and claimed payment – leaving 10,916 farmers who have yet to complete work.

For these farmers the deadline for completing investment is approaching. Those who applied to the first six tranches of the scheme, up until April 2017, have three years from approval to complete work and claim payment.

Farmers who applied to the scheme after April 2017 were given just 12 months.

Total funding available under the seven-year scheme is €395m.

To date, €77m of grant aid has been paid out, with €47m of it paid out in 2018.

The average grant to date has been €14,000.

At that rate, if the 10,916 farmers with approval complete their investment they will claim another €150m in grant aid.

If it becomes clear that some farmers have abandoned investment plans, then the Department of Agriculture could be asked to make additional items of equipment eligible for grant aid or to increase the grant ceilings for some enterprises, eg pigs and poultry.

Meanwhile, IFA rural development chair, Joe Brady this week advised farmers who have started but not yet completed work, and who are approaching the completion deadline, to apply to the Department of Agriculture for more time.

“The Department indicated to us that if a farmer can demonstrate that substantial work has been carried out, by submitting receipts and perhaps photographs, then it will consider giving an extra six months for completion of work,” he said.