Mr. Eddie Downey:

I thank the committee for this opportunity to outline the IFA's position on this year's budget. Agriculture is Ireland's largest indigenous industry, with an estimated 300,000 people relying directly or indirectly on the industry for jobs. It supports economic activity throughout rural Ireland. When we look ahead at this year's budget the core objective of the Government must be to focus on supporting sectors delivering jobs and export growth.

As committee members are aware, 2013 was a very difficult year for many farmers. The already low income cattle and sheep sectors were particularly badly hit, with incomes falling to between €10,000 and €16,000. Despite these difficulties farming continues to contribute to the economic recovery which is now clearly evident through continued growth in agrifood exports and employment. Agrifood exports reached a record high of almost €10 billion in 2013 and the value of exports has increased by a further 11% in the first four months of the year.

Funding for farm schemes underpins farm income and output. Under the new rural development programme there is an overall allocation of €2.1 billion of EU funding and €1.9 billion of national funding for the period from 2014 to 2020. I wish to take this opportunity to acknowledge the funding commitment made earlier this year by the Government to the rural development programme for the next six years. More than €500 million funding for rural development schemes must be provided in the October budget. This funding will deliver programmes of support for low-income farmers, provide environmental services, encourage young farmers, promote on-farm investment and support farming in marginal areas. With the significant increase in EU funding available in 2015 the level of funding for rural development programme farm schemes can be provided without an increase in Exchequer funding in the agriculture budget for 2015.

Priorities for farming in the budget for 2015 are the commencement of contracts for the new green low-carbon agri-environment scheme, GLAS, in early 2015, with places for 30,000 farmers in the scheme in its first year and payments being disbursed in 2015; the allocation of €30 million for the targeted agricultural modernisation scheme, TAMS, in 2015 to fund on-farm investment programmes in all sectors; funding of €52 million for the beef data genomic scheme in support of the vulnerable suckler herd; and increased capital funding allocations for horticulture, forestry and agriculture to achieve output targets and employment growth.

On the taxation side, the IFA believes the agri-taxation review provides an opportunity to identify the key challenges faced by agriculture, the potential for growth and development of the sector and the taxation measures which can most appropriately address the challenges and realise this potential. These taxation measures must encourage on-farm investment, assist farmers in managing volatility, encourage new entrants into farming and increase land mobility. The priorities are the introduction of a tax deposit scheme to managing income volatility, the retention of 90% agricultural relief to support the transfer of viable family farms, the introduction of a phased transfer-----