Calf Investment Scheme: everything you need to know

The Calf Investment Scheme (CIS) offers financial aid to farmers who purchase calf-feeding equipment. A 40% grant aid is available up to an investment ceiling of €7,500. The scheme is open to all farmers subject to the following conditions:

There are two categories of equipment for which farmers can apply to the scheme. Category A is large items while category B are smaller items. Farmers must apply for category A equipment before they can apply for category B equipment.

Category A equipment

There are three types of equipment in category A. These are:

Category B equipment

Category B equipment includes lower-cost items such as hay racks, meal troughs, milk heaters and dividing gates and barriers.

Maximum grant

The maximum investment eligible for payment will be €7,500 excluding VAT. So if an applicant applies for that amount they will be entitled to €3,000. Expenditure over €7,500 is at the applicant's own cost.

For example, if an applicant decides to purchase a four-station computerised calf feeder, the reference cost of the machine is (€1,534.80 x 4) + €7,540.60 = €13,679.80.

As the maximum investment ceiling that can be claimed is €7,500, in this case the farmer will receive €3,000 in grant aid.

There is €1.5m available in the CIS fund and if the scheme is oversubscribed then the Department says a linear cut will apply to each payment which may reduce the rate of grant aid to a lower rate than 40%.

When can I apply?

Application forms for the scheme will be available online from 7 January and completed applications can be emailed to CIS@agriculture.gov.ie. The closing date for applications is 5pm on 28 January. Applications can only be sent via email.

The Department of Agriculture has issued the following question and answer guide:

1. Can I apply for a calf feeder I purchased before the scheme opened?

No. Any expenditure made before the date of submission of an application is ineligible. Deposits/expenditure paid on or after the date on which your approval is confirmed as received by DAFM are considered eligible expenditure.

Applicants should be aware that there is no certainty that an eligible application will be approved, even where a deposit or expenditure has been paid. Therefore, deposits/expenditure paid prior to approval are at the applicant(s) own risk.

2. How can I apply for payment?

A payment claim form will issue with the approval letter. This must be returned with a copy of receipts to the Department as soon as possible but must be submitted no later than the 30 June 2020.

3. What is the maximum payment I can receive?

Grant aid per investment item will be calculated on the basis of the lowest of the following amounts:

(i) The Department’s Reference Costings applicable at the date of approval.

(ii) The total of the eligible invoices marked “paid”, net of VAT.

(iii) The cost of the approved investment. And shall be paid at a rate of up to 40% up to the maximum investment ceiling of €7,500.

4. What is the minimal claim for payment?

Minimum payment amount is €400, which is the minimum investment amount of €1,000 at a grant rate of 40%.

5. Do I need receipts for proof of purchase?

All receipts should be original, should be on headed paper and should at least include the name, address and VAT number/Tax Reference Number (TRN) of the supplier/contractor (if registered). In addition, the receipt must indicate the name and address of the applicant; the invoice number and date, where applicable the details of purchase in an itemised form specifically referencing serial number, where applicable; actual cost of each item excluding VAT; the total VAT paid; the amount of discount, if any; in the case of receipts comprising of both goods and service (supply and fit), there must be a breakdown between the categories; the complete quantity for each claimed investment.

A copy of receipts must be submitted with the payment claim. If selected for a prepayment inspection, the original receipts must be presented to the Department inspector.

6. Does an invoice qualify as a receipt?

An original invoice which is (i) marked paid, and (ii) contains the details set out above, is also acceptable.

7. When will payment issue?

Payment will issue once all claim forms have been received and checked.

8. Are there penalties for late claims?

Payment claims lodged after 30 June 2020 will be subject to a 5% reduction of aid for week or part thereof received late up to a maximum of four weeks. Claims received on or after 29 July 2020 will result in rejection of the payment claim and zero payment.

9. Can I withdraw from scheme after approval?

Applicants can withdraw from the scheme by email notification after they have received approval if they have not yet submitted a claim.

10. Can I change my investments?

Yes, you can make changes, but your claim cannot exceed your approved cost, and you must complete and claim a category A investment.

11. Use of investments

The applicant or the successor shall be required to use the investment(s) for its intended purpose for a minimum of three years from the date of issue of the payment in respect of the investment(s) grant-aided. Failure to do so will result in the 100% recoupment of grant aid of the relevant investment.

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