Dairy farmers improving their milking facilities are facing increased costs of up to €60,000, according to an analysis by the Irish Farmers Journal.

The increased costs come about as a result of the Government pulling supports for thousands of dairy farmers under TAMS III, and taxing farmers by dropping VAT reclaims for improving their milking facilities.

Under TAMS III rules, no dairy farmer milking more than 120 cows can claim grant aid under the Dairy Equipment Scheme and they must have 110% of their legal slurry storage requirements. Dairy is the only sector that this rules applies to.

The minimum TAMS payment for a farmer claiming the maximum of the investment ceiling is €36,000, while VAT adds a further 13.5% to 23% on the cost of equipment.