Inflation in the price of steel and timber has led to the cost of building an average farm shed rising by 50% since 2020. The price of steel has risen by 70% compared to two years ago, while timber has doubled with a full 100% increase reported. This has resulted to farm leaders exerting pressure on Agriculture Minister Charlie McConalogue to implement revised costings under the Targeted Agriculture Modernisation Schemes (TAMS).
Farmers are now anticipating that their concerns be addressed as the opening of the next tranche is expected on 9 April, 2022.
Declan Geraghty, of DG Roofing in Galway, who also an independent councillor, says “the price of materials used for the average farm shed is driving the situation, and no-one knows where this is heading.” With the market quite volatile at present, farmers are stating that the price of steel cannot be guaranteed as in the last three weeks some steel has gone up €120/t, other steel has gone up €300/t, and heavier steel is gone up €500/t.
The Irish Creamery Milk Suppliers Association’s (ICMSA) Denis Drennan says the TAMS costings were already demonstrably out of date and inadequate even before the most recent surge in inflation now they are fully disconnected from reality.
But according to a department spokesperson all costings under TAMS are currently being reviewed by the department. Any changes identified will be considered once this review is completed. Tranche 25 of TAMS II will remain open until 8 April 2022. Over 1,700 applications were submitted under Tranche 24, all valid applications are being approved, with approvals currently being processed.