Oireachtas Joint and Select Committees

Wednesday, 19 November 2014

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance

Finance Bill 2014: Committee Stage (Resumed)

2:30 pm

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

The definition of an active farmer is relevant to a number of sections but it is referenced in section 45. This covers a number of issues throughout the Bill, including long-term leases, retirement relief, capital acquisitions tax relief for young farmers, and single farm payment disposal, which is referred to in section 45. The difficulty relates to the definition of an active farmer.

In my part of the country, in counties like Roscommon, Leitrim, and Galway, the majority of farmers are part-time. The definition of an active farmer under the legislation as it stands is that they must spend at least 50% of their time actively farming. Because of the farm sizes we have and the capacity of those farms, especially those on marginal land, to generate a sustainable income, farmers are required to work off-farm to supplement that income. One can see right across the annual Teagasc income studies the importance of off-farm income. This is particularly the case in my constituency where many farmers work with Bord na Móna as seasonal workers. Many of them would fail this test even though they are full-time farmers except for the seasonal work they do with Bord na Móna.

The majority of farmers in the west - about six out of ten - are part-time farmers. The objective behind all of this is farm consolidation. It is about transferring farm holdings to younger farmers, who are more energetic and can increase production. We need that in the west more than anywhere in the country. We have fragmented holdings and an old farmer population, and it is difficult to get young farmers to take over holdings. There is huge potential for efficiencies in agricultural production, but the active farmer definition as it stands would limit this. I know the Minister has indicated that he will look into this, but there are no amendments to it before us, and he might clarify exactly the position and his intention. Is it just to cover the issue of long-term leases or is it to cover the other categories I have raised in relation to the definition of an active farmer?

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