It pays to get competitive quotes on your equipment
Detailed costings will be required for your Dairy Equipment Scheme application and cheaper quotes will raise your chance of selection, writes Caitriona Murphy
Detailed costings for any equipment will be required from farmers along with their application to the Dairy Equipment Scheme.
Teagasc's farm buildings and equipment specialist Tom Ryan is urging farmers to have some work done prior to the application.
"For example, have cost estimates and know the size of the bulk tank and water heater that you intend to buy," he explains. Department of Agriculture standard costings are currently being updated and will be calculated per litre of tank capacity.
"Farmers will also need cost estimates for the milking equipment, because the grant will be calculated on the number of units," he points out. "For instance, the number of units in new milking machines or the number of extended units in extended parlours."
Farmers and their advisers will be required to give estimated costs (based on quotations) with their application form.
Department of Agriculture officials will then assess the farmer's estimated costs and compare them to the Department's own standard costing. The grant will be calculated based on the lower of these two costings.
For example, Farmer A submits estimated costings of €11,000 for a new milking machine but the Department's standard costings for the same machine are €10,000.
The grant will be calculated on the lower costings of €10,000 and the farmer, if approved, will receive a grant amounting to 40pc of €10,000, or €4,000.