Soaring farm building costs reducing value of grant aid to farmers

Construction costs for farm buildings have jumped 15-20pc on the back of significant price increases for structural steel, cladding, timber and concrete.

The cost of steel has jumped 30pc since the start of the Covid-19 crisis, with many builders struggling to secure supplies.

The difficulties are hitting grant applications for TAMS works, with both the ICMSA and IFA calling on the Department of Agriculture to immediately publish revised reference costs for building work.

Billy Heffernan of Dwyer Steel in Dundrum, Co Tipperary said the cost of structural steel had increased by 35-40pc since 2020.

The cost of cladding for the roof and sides of buildings had also increased by more than one-third, Mr Heffernan added, while the cost of fibre cement used in roofing has jumped by 15pc.

The agri-sales manager said the cost of timber roof purlins has jumped at least 30pc, while galvanise purlins are very difficult to source.

Mr Heffernan blamed the price hikes on the disruption to supply which Covid-19 has wrought.

With concrete prices up around 5-10pc, building costs are estimated to have increased around 10-15pc overall.

The farm organisations claimed farmers undertaking construction works under TAMS were being forced to cover a far higher proportion of the overall expenditure as the reference building costs on which grant supports were based were out of date.

Denis Drennan of ICMSA called on the Department to immediately publish revised reference costs being used for TAMS investments to reflect the increased cost of materials in recent months.

“The Department has previously confirmed that they are currently reviewing the costs and we need that concluded as soon as possible and, critically, the revisions should apply to current applications in the system,” Mr Drennan said.

Similar sentiments were expressed by Michael Biggins of IFA. He said building costs had been severely “skewed” by the recent price increases and he warned that some development work “would not go ahead” if the Department did not address the reference costs issue.

Mr Biggins suggested that a more “fluid system” of establishing reference costs for farm construction work should be adopted by the Department.

The IFA representative maintained that such an approach would be more responsive to fluctuations in building costs, and would ensure farmers received the level of support envisaged under TAMS.

Online Editors