Revised reference costs for TAMS 3 are up across the board on the previous scheme, but are still “hopelessly adrift of the actual prices,” according to ICMSA deputy president Denis Drennan.
We have to ask why we see the increases under a majority of headings going up by 12pc when the actual inflation to be applied to these materials from the figures in TAMS II would have been well in excess of that,” Mr Drennan said.
Eamon Doyle from Doyle Farm Buildings in Carlow told the Farming Independent he has seen a slight reduction in price for some materials, but the outlook for farmers taking on new builds is that costs will remain high.
From April 1, he said, the price of concrete will be up 6pc and blocks and stone filling will be up by 3pc. “All of these costs are passed on.
“Steel is down €50-60/t, which is a fractional decrease. These items had doubled in price, with steel having gone from €750/t to €1,250/t. We’re not sure what’s in the pipeline in terms of how much it will come down in future.
“Our building costs have all gone up also. Our ESB is up €700-800 per month, along with paint up from €90/drum to €130/drum.
“Needless to say, farmers aren’t happy about it but we’re doing our best to keep costs down, switching between providers to get the best price.
“Before Covid we did an estimate for a straightforward six-bay lean-to shed, coming in at around €70,000. The same shed would cost around €92,000 to build today.”
Mr Drennan claims that reference costs under TAMS 3 are “double-digits short” of the actual costs.
“Family dairy farms have, yet again, been singled out by the Department to have the screws turned on them,” he said.
“We get no satisfaction from observing this, but the fact is that
TAMS 3 is out of date already in the first few weeks of launch.
“A huge opportunity will be missed and the responsibility for that failure lies, I regret to say, squarely at the feet of the Department, who came halfway to the mark under some headings and didn’t even try to come under other even more important headings.”
Michael Donnellan from DG Roofing in Co Galway said that despite high costs, there remains a strong demand for new sheds.
“The appetite is still there, especially from the dairy industry. We’ve gotten a lot of enquiries since Christmas,” he said.
“Farmers are building cubicle houses and we did a couple of sheds for contractors also. Everyone needs more space.
“You always get complaints about price, even when it’s cheap, but farmers are realistic and they understand the prices are all gone up.
“Farmers ask me if the price will come down and if they should wait. I don’t see prices coming down
within the next year anyway and I always say to go ahead with it now and get the various reliefs that are available.”
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