Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I welcome the opportunity to highlight key aspects of budget 2025 for the Department of Agriculture, Food and the Marine, introduced by myself along with the Ministers of State, Senator Hackett and Deputy Heydon. My goal for budget 2025 was to support farm incomes as well as the continued development of the agrifood industry, by building on the significant supports put in place over the lifetime of this Government.

With those objectives in mind, a total of €2.112 billion has been allocated to my Department for the coming year, which includes €85 million for new measures. This is an increase of €158 million year on year, or 8.1% above the 2024 provision. This is in addition to the €1.2 billion of EU funding in direct payments to farmers, funded outside of my Department's Vote. The provision supports incomes in the vulnerable sectors, but also provides investment support at farm level across the sectors and for our agrifood and fisheries processing sectors as well. In making this provision, the Government has recognised the critical importance of the agriculture, forestry and fisheries sectors as engines of employment creation and economic growth, especially in rural areas.

The growth and development of the tillage sector is a strategic objective of this Government. In budget 2025, I am fully delivering on my commitment of a €100 per hectare payment for farmers who planted tillage and field-grown food crops for harvest 2024. This is in addition to the €10 million straw incorporation commitment in this budget, as well as the €10 million protein aid scheme commitment funded under Pillar 1 of the Common Agricultural Policy. Just three years ago, targeted payments to support the tillage sector overall amounted to just €3 million in total, and that was for the protein aid scheme. This year they will be €50 million.

Earlier this year, I published a ten-point plan to develop and support our growing dairy beef sector. To further encourage this development, I am doubling the current payment per eligible calf from €20 to €40. As my aim is to encourage greater integration of the dairy and beef sectors, the allocation of this funding will be agreed in consultation with the farm organisations in due course. I have increased targeted supports to the beef sector in successive years now through the suckler carbon efficiency programme and the national beef welfare programme. Yesterday, I increased the payment per cow and calf from €200 in 2024 to €225 next year. I will also continue to fund the national genotyping programme which is making a significant contribution to the development of both the beef and dairy sectors. These measures support farm incomes but also deliver on efficiency, environmental and animal welfare goals at farm level.

With regard to the sheep sector, I am also increasing the current rate of €8 per ewe under the national sheep welfare scheme by €5 bringing it to €13, which now delivers a combined €25 payment per ewe. This is a 150% increase in funding - from €10 to €25 - since I became Minister and is by far the largest payment ever made to sheep farmers.

Regarding the farmer group known as the forgotten farmers, I have always affirmed my commitment to resolving this issue. I am pleased that in budget 2025 I will be able to open the scheme for this group with an initial funding contribution of €5 million provided. I am very glad to be in a position to now progress a scheme that has long been spoken about and that will also be followed with additional budgetary provision in budget 2026. This is certainly a significant step in this budget.

Just two weeks ago, my colleague the Minister, Deputy O'Donovan, and I were delighted to announce the provision of funding for two new veterinary schools on the island of Ireland. The objective is to ensure fewer young Irish people have to travel abroad to complete their veterinary studies. The selection of the South East Technological University and the Atlantic Technological University will help to achieve this objective. It will also make a significant contribution to balanced regional development. Of the €50 million committed, my Department will be providing €25 million, with €5 million of that provided from the Department's Vote for 2025.

Over €700 million will be spent in support of farm families in their efforts to tackle the challenges of climate, biodiversity and water quality in 2025. I have provided an increased provision of €60 million for ACRES. This will bring funding for the scheme in 2025 to €260 million. This follows my decision to accept all 55,000 participants into the scheme. I have also committed €40 million in capital funding for the development of a biomethane industry. This commitment for early delivery in 2025 is matched with €5 million in funding, with the remainder to be paid in 2026.

My recently published plan to secure the nitrates derogation is fully funded under this budget. Farmers have made significant commitments to improving water quality, as shown during the recent visit by the European Commission's nitrates team to Ireland. I am supporting these efforts through capital and programme funding, with at least €61 million being provided for the targeted agricultural modernisation scheme, TAMS, in 2025. In this context, further to my introduction of a dedicated 70% nutrient importation storage scheme, subject to European Commission approval, I will open a 60% grant-aided nutrient storage scheme with a separate investment ceiling of €90,000. This will allow farmers to invest in nutrient storage under a dedicated investment ceiling, while also allowing them to invest in other measures on their holdings up to an additional €90,000 investment ceiling.

Over the lifetime of this Government, €800 million has been spent on the seafood sector. The allocation for the fisheries and seafood sector in 2025 is €177 million. This will support continued investment in our piers and harbours, as well as provide investment for the seafood sector under a range of schemes, including: the inshore fleet economic assessment scheme, with payments of between €3,500 and €5,000 to inshore fishing vessels; the inshore fisheries scheme for small-scale coastal fishing vessels, with enhanced grant intensity rates of between 80% and 100% to support both on-board and on-shore investments; a lobster V-notching scheme to support fishing incomes and improve the sustainability of this fishery; a sustainable fisheries scheme providing support for on-board investment in sustainable fishing gear; a seafood processing capital investment scheme that will provide important support for capital investment in the seafood processing sector; and an aquaculture capital investment scheme that will provide support to aquaculture operators in the context of capital investment. The seafood training scheme supporting the development of skills and knowledge across the fisheries, aquaculture and seafood processing sectors will operate next year, as will the opening of a new young fishers scheme which provides support to young fishers under the age of 40 in purchasing their first fishing vessel, with grant rates of up to 40% of the cost of the vessel up to a maximum amount of €250,000. Additional schemes in 2025 will support producer organisations as well as community-led development within 10 km of the coast via the fisheries local action groups, as well as a seafood innovation scheme.

The agri-taxation measures announced by my colleague the Minister for Finance, Deputy Chambers, demonstrate the Government’s commitment to retain key taxation measures that will support us in developing the sector in 2025. These measures are significant. For example, stock reliefs have been extended for a further three years, to the end of 2027. This is incredibly important for young farmers and those entering farm partnership, including for farm succession purposes. The capital acquisition tax agricultural relief, which is worth approximately €250 million per annum to farmers, has been retained. Following consultation with stakeholders and in order to ensure that this relief benefits genuine farmers rather than speculators, a new provision requiring the disponer to retain land for at least six years before benefiting from the capital acquisition tax relief, is being introduced. This is entirely consistent with the intention behind the relief, and my and this Government's objective to make sure we are looking to support young farmers and family farm transfers through this important support.

The list of farm safety investments eligible for accelerated capital allowances has been extended, very much driven by my colleague the Minister of State, Deputy Heydon, who will cover this, and flat-rate compensation for farmers will also increase from the current 4.8% to 5.1% from 1 January next year.

I welcome the fact that an opportunity to avail of an exemption from the residential zoned land tax in 2025 is being provided for farmers who carry out genuine economic activity on their land if they seek to have it rezoned. It is critically important that we take measures to progress our housing policies, but this new provision addresses the legitimate concerns of genuine farmers.

Considerable work has already been undertaken in recent months in relation to the introduction of an income volatility measure. There are lots of complexities to it, however, and it will require detailed legislation. I look forward to working with the Department of Finance to build on this with a view to having the necessary legislative parameters addressed in advance of budget 2026. I recognise the very strong commitment and recognition given for the need for an income volatility measure in our taxation system given by the Minister for Finance, Deputy Chambers, in his budget speech yesterday.

Stripping out the exceptional Brexit adjustment reserve and Covid funding, this is the biggest funding package ever delivered for this sector. It succeeds in maintaining a strategic focus on the long-term drivers of success for the sector, while also addressing the more immediate challenges. I am satisfied that following intensive engagement we have succeeded in obtaining a balanced package that will support the sustainable development of our agriculture, forestry and fisheries sectors in 2025 and beyond. This is a strong message to our farmers and fishers that this Government values them and will continue to support them. I commend this budget to the House.

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