DAFM 'declares war on agri contractors' with new TAMS 3 announcement

With the “continuing exclusion” of agricultural contractors from TAMS 3, DAFM has “now targeted the total elimination of the agricultural contracting sector as its priority through a process of stealth by undermining the profitability of the agricultural contractor sector”, according to FCI.

The Association of Farm Contractors in Ireland (FCI) had requested the Minister for Agriculture, Food and the Marine, Charlie McConalogue, TD, to include agricultural/farm contractors in the new Targeted Agricultural Modernisation Scheme (TAMS 3), details of which were announced yesterday.

FCI national chair, John Hughes, commented: “The glaring omission from the TAMS 3 announcement points to the continuing total exclusion of agricultural contractors from the huge financial benefits totalling €370 million, provided for the purchase of a range farm machines, all of which will be directly competing on an unfair basis, with the services provided by agricultural contractors, generations of who have provided professional services to thousands of farms across all counties of Ireland.

“DAFM is now using the TAMS 3 scheme to financially support farmer clients of agricultural contractors so that they can compete unfairly with agricultural contractors to effectively eliminate the business of agricultural contracting from Irish farming.

“The TAMS 3 scheme, as now announced, provides farmers with virtually free machines in order to put agricultural contractors out of business,” he added.

In a letter to Minister McConalogue, FCI said this is happening against a backdrop where all farm organisations and Teagasc have acknowledged the hugely significant role of the agricultural contractor.

Teagasc reports have shown that across Irish farms, farmers spent an average of €5,682 on contractor services during 2021. Based on a farming population of 135,000 farms, this puts the value of the sector at more than €760 million.

In practical and tangible terms, the 1,500 agricultural contractors on the FCI database work on an average of three farms each day. This amounts to 4,500 farmer and agricultural contractor interactions each day, or 27,000 each week of the working season. With a 30-week working year of direct farm work, this equates to over 800,000 farmer and agricultural contractors interactions each year, across 137,000 Irish farms, according to the FCI statement.

“The message is clear, FCI agricultural contractors are in touch with their farmer clients, understanding their needs and challenges and have a direct financial interdependence with the successful performance on the farm. Irish farming cannot survive without agricultural contractors and agricultural contractors cannot survive in a market where DAFM is subsidising the total elimination of their sector through state-funded unfair competition,” John added.

FCI believes this latest TAMS 3 scheme, as it is currently constructed, will simply put many agricultural contractors out of business.

John continued: “The economic impacts of the new TAMS 3 scheme will include the loss of rural employment in agricultural contracting, where up to 20,000 full and part-time are employed in skilled occupations. This will deplete rural Ireland of further employees who bring new skills and technology to rural communities.”

FCI says the sector is “clearly now at cross-roads in terms of its future, due to decades of ignoring its existence and the value of its contribution. The lack of new entrants and the lack of appeal of the sector to younger people is contributing to a decline in investment”.

John added: “The contribution of the agricultural contractor sector must be recognised by DAFM. There must be a political will to support the sector or witness its rapid demise as machinery investment costs soar, while charge rates remain stifled by uncompetitive players supported by DAFM TAMS 3 grant aid and tax avoidance opportunities.

“DAFM already holds a register of farm improvement contractors, so providing a register of professional agricultural contractors is well within the scope of DAFM management,” he added.

FCI is requesting that as part of the Ireland’s CAP Strategic Plan 2023-2027, the association is supported in creating a National Register Farm & Forestry Contractors in Ireland by the Department of Agriculture, Food, and the Marine and in association with the Office of the Revenue Commissioners and the Association of Farm & Forestry Contractors in Ireland (FCI) through an agreed independently audited accreditation system.

Meanwhile, Macra president, John Keane, has said that the omission of construction costs associated with new milking parlours is a “major blow” for young farmers starting out in the sector.

“It comes as no surprise, unfortunately, that the construction costs are not covered under the new TAMS 3,” he said.

“We have seen a consistent disregard for young farmer supports from the department over the past few years. Under the last CAP construction costs were eligible for new milking parlours for those qualifying under the Young Farmer Capital Investment Scheme, but the new scheme appears not to cover this cost for young farmers.

“Also excluded are those farmers who availed of grant aid for robotic milking equipment under the previous TAMS 2.

“This compares to those who availed of support for solar installation under TAMS 2 are eligible once more under TAMS 3.

“At a time when labour is in short supply, and the associated benefits for data collection and management garnered by using robots, we see the Minister excluding farmers who availed of support previously for robotic milking equipment.

“This move is grossly unfair to these farmers as there was no indication in the previous TAMS that any investment under the last CAP would affect future access.

“What is needed now is for the Minister to review the inclusion of building costs for young farmers for new milking parlours, and also the exclusion of support for robotic milking equipment for those who accessed grant aid support under TAMS 2.”