As our editor Jack Kennedy highlighted last week, with each CAP update came the promises of a simplification of the schemes for both farmers and advisers with the result being the opposite; increased paperwork and headaches for both parties.

It can’t be making life much easier on the administration side for the Department, which could be part of the reason that the processing of the TAMS III tranche one applications is taking so long.

Over two weeks ago, we heard an announcement by the minister that the acceptance letters will start to roll out this month, but many farmers will have to wait until February, March or April to receive the crucial letter allowing them to commence works. For some, this will be close to a full year since they applied for grant aid.

Commencing works on a busy farm in spring, or indeed trying to line up the increasingly busy farm building contractor, will be a challenge. It’s simply not good enough, and the Department of Agriculture must recognise this and change its approach.

Paperwork and administration take time, which is acceptable in some ways, but what is a real bug bear is the low reference costs. Time and time again, I have heard from farmers who have exceeded their reference costs through no fault of their own. We have shown plenty of examples here on the building’s pages of the Irish Farmers Journal at how costs are generally 20% higher than those of the reference costs. Not only is this diluting the grant rates, but this extra money required to complete builds also has to likely be financed.

Take the Clipex sheep handler we have in this week’s Focus, for example. A fantastic piece of kit that combines labour saving with greater data collection that would allow the farmer to become more efficient on their farm.

Reference cost

TAMS fails to have a reference cost for such a high-tech machine. Even combining the reference costs of a portable race (€3,847.75), a weighing scale (€826) and a rollover crate (€1,023) fall far short of what a proper high end sheep crate would cost.

What’s been an even greater kick in the teeth has been the “change in interpretation” of the rules for the Flat Rate Vat Scheme for farmers.

Revenue can spin it as it likes, but a change is a change, and the end result is that farmers will be out of pocket with not being able to reclaim VAT.

The Flat Rate Vat Scheme is meant to cover necessary investments on a farm which are normally listed as fencing, drainage and farm building works. I’d hope that the Revenue officials who changed the way they look at these rules received a pair of wellingtons under the tree this Christmas, and that they might get out on to farms and see how essential a bulk tank is.

Outlook

Milk churns are long gone, and are best suited to potted plants in the garden.

There’s also the feeling among farmers that the listed items that are no longer claimable primarily deal with investments from dairy farms. If this is intentional, it sets a dangerous tone for the outlook on dairy investments.

The real worry with the change in interpretation on VAT for certain investments would be that the list would expand to cover more ineligible items.

Drainage, as mentioned, is almost a dirty word now. Could it face the chop? I would hope not.