FINANCIAL constraints have forced the Government to suspend grant schemes offering farmers nearly €100 million for modernising their operations.
Agriculture Minister Simon Coveney has announced the temporary suspension of further applications from farmers to the Targeted Agricultural Modernisation Schemes, with immediate effect.
"I could not defend a situation in which farmers go to the time and expense of preparing and submitting applications, in the expectation that grant aid would be forthcoming for their project, when there was a question mark over the availability of funding," he said.
IFA president John Bryan said the suspension was a major blow for farm investment.
"These schemes had only commenced over the last six months, at a time when the climate for investment in agriculture had improved."
He said the schemes must be re-opened, in order to achieve the Government’s target of increasing milk output 50% and beef output 20% by 2020, as well as boost food and beverage exports by more than 40%.
The schemes — 55% co-funded by the EU — support investments for dairy equipment, sheep handling, pig and poultry welfare, rainwater harvesting and the establishment of bio-energy crops.
The minister said a final decision on the future of the schemes will be made in the context of the Government’s expenditure reviews and 2012 estimates.
Spokesman for the Irish Cattle and Sheep Farmers’ Association Paul Brady said: "Farmers will be disappointed at this news, and it reinforces the feeling that the Government will keep closing vital schemes, until there is nothing left, while ignoring the big costs in the overall national budget."
Many of the schemes were given to young farmers to encourage new entrants into agriculture.
Up to €45m of grant aid was on offer to farmers investing in milking machine equipment and milk cooling, refrigeration and storage equipment. Farmers could apply for grants of up to €16,000 for milking equipment, and €10,000 for cooling, refrigeration and storage equipment.
Up to €8m of grant aid was on offer to farmers who invest in water conservation and reduce water costs by maximising use of rainfall run-off. The maximum grant per farm is €10,000.
When introduced last January, these schemes were opened for applications in three-month tranches until 2014.
The sheep fencing/mobile handling equipment scheme offered €8m up to 2012.
Also affected is a sow welfare scheme offering €13m of grants to farmers. Up to €120,000 of grant aid per farmer was available to help them become compliant with EU animal welfare standards for pigs.
The bio-energy scheme offering about €1m per year to support planting of up to 1,000 hectares of willow or miscanthus energy crops has also been suspended.
There were 91 applications for this funding this year. The grants of up to €1,300 per hectare cover 50% of the costs of establishing the crops.
a d v e r t i s e m e n t
This appeared in the printed version of the Irish Examiner Thursday, June 09, 2011
