Martin Heydon (Kildare South, Fine Gael)

Budget 2026 will make a robust contribution to the development and resilience of the agrifood, fisheries and forestry sectors. We have a strong economy that, thanks to the hard work of the Irish people, has weathered multiple crises. However, we are living through a time of economic uncertainty. It is essential that we take every measure to protect jobs and livelihoods. Irelands's agrifood sector employs approximately 171,400 people, representing 6.4% of the total workforce but a far greater proportion in rural and coastal areas. It makes an enormous contribution to the overall economy but also to rural communities. The roots of this sector run deep. There is not a parish in the country that is not enriched by the contribution made by farmers or where some small business does not depend on the sector for its very existence. The sector is responsible for the stewardship of 4,500,000 ha of agricultural land and over 800,000 ha of forestry. It consists of 133,000 farms, 2,000 fishing vessels and aquaculture sites and some 2,000 food production and beverage enterprises. It employs over 171,000 people, as I said, and the impact of that employment of 6.4% is felt far more greatly in our rural areas due to the multiplier effect of that economic activity in those rural coastal areas.

In an increasingly globalised world, the Irish agrifood sector is a world leader. This is the first of five budgets this Government and I, as Minister for Agriculture, Food and the Marine, will deliver. We will not achieve everything in one budget, but budget 2026 marks an important first step to sustain rural ireland and help the tribe. In total, I have secured €170 million of additional funding for the sector in this budget, which brings my Department's Vote to over €2.3 billion. This represents a 9% increase in funding when compared with 2025 and highlights the Government's strong commitment to the sector. I am delivering substantial supports to continue the growth and expansion of the agrifood, forestry and fisheries sectors. In particular, it includes concrete measures to further progress key priorities of mine as Minister, including reducing bovine TB, maintaining the nitrates derogation, encouraging generational renewal and supporting the tillage and livestock sectors.

I am acutely aware of the emotional and financial impacts that bovine TB has on farmers and their families and on rural Ireland. I have secured an increased budget allocation of €85 million of new money for TB in 2026. This will result in a total budget of €157 million to help tackle the scourge of this disease. Based on our latest modeling, this will provide a fully funded revamped TB programme. It will focus on tackling the disease levels through the implementation of the measures laid out in the new TB action plan, which I launched last month. It is vital that we ultimately reduce the cost of this disease for all in the coming years. This allocation will support and enable farm families who are dealing with the stress of a TB outbreak to navigate a way out of a TB restriction and to protect those herds currently free from bovine TB from the stress of a TB outbreak. This additional funding will be vital in addressing this disease and I am confident it will help drive down the incidence of bovine TB levels for future years. This significant additional investment in the programme will support a wide range of impactful measures including additional targeted testing, additional resources for the wildlife programme, supporting non-farm biosecurity through direct support to farmers for improving biosecurity infrastructure on their farms and facilitating more engagement between farmers and their private veterinary practitioners. I am determined that no stone will be left unturned in our efforts to tackle the scourge of bovine TB.

Another key priority of mine and the Department is the nitrates derogation. Improving water quality and securing the extension of Ireland's nitrates derogation is another key Government priority, and I remain committed to supporting farmers to achieve these twin objectives. With this in mind, the accelerated capital allowance, ACA, for slurry storage is a key agri-taxation measure and that will be renewed. This allowance will continue to incentivise investment in slurry storage capacity, making an important contribution to the overall effort to secure the retention of the nitrates derogation. This relief is being renewed for four years rather than the normal three to provide additional certainty for farmers in planning their investments.

Budget 2026 also continues the funding committed under the €60 million European innovation partnership, Farming for Water, and Teagasc's agricultural catchments programme. Working in conjunction with industry, this provides free advice to farmers on positive measures they can undertake to continue to improve water quality. There is massive work and investment under way across the agrifood sector to reduce its impact on water. In response to my invitation, the European Commissioner responsible for the environment and water resilience, Ms Jessika Roswall, will visit Ireland in November and we will use that opportunity to demonstrate some of the investments being made by Irish farmers to improve water quality.

Another key element in the support of the retention of the nitrates derogation is continued support for capital investments on farms. I have allocated €88 million to the targeted agricultural modernisation scheme, TAMS, capital investment scheme for 2026. I am a huge believer in the positive impact of TAMS as it supports competitiveness on Irish farms, generational renewal and important investments, such as slurry storage, that will be a critical component in supporting the case for the renewal of the nitrates derogation. There continues to be significant farmer demand for this scheme, with over 6,100 applications to the latest recent tranche, and this increased allocation of €88 million will require careful management.

The agri-climate rural environment scheme, or ACRES as it is known, provides an important income support and underpins environmental action on farms. It has faced many challenges, but I am committed to restoring farmers' confidence in the scheme and supporting the efforts of almost 54,000 farmers who are contributing in a range of environmental, biodiversity, climate and water quality objectives. I have secured an increased allocation of €280 million for ACRES in 2026 to continue this work. Advance payments under this scheme are scheduled to commence on time next month. This is a scheme that has delivered over €500 million into farmers' pockets to support them in the efforts they have been making since just 2023. It is a really important scheme and I am delighted to have secured that additional funding for it.

The tillage sector is a critical part of the agrifood sector, producing high-quality animal feed, bedding and ingredients for the food and drink industry. Coming from a tillage heartland in County Kildare, I understand the vital contribution the sector makes to the wider agricultural ecosystem, and the Ceann Comhairle knows that too. At a challenging time for the sector, I will be supporting the tillage sector in 2026 with funding of at least €50 million through the protein aid scheme, the strong corporation measure and the new tillage support scheme. Having secured a funding allocation for the scheme, I intend to consult with stakeholders on its design and operation in due course to ensure we target this funding to those who need it most. These measures will support tillage farm incomes, and I very much view them as a strong base to work from in future years to protect the future of tillage farming in Ireland.

Recognising the importance of the dry stock sectors, I will be maintaining the existing overall allocation for the various livestock schemes, which will amount to €131 million in 2026. These targeted supports for beef, sheep and suckler farmers will assist farm incomes and encourage positive actions on farms. These sectors are vital to rural communities across the country. I will continue to fund the national genotyping programme to support my ambition of genotyping the entire national bovine herd.

Before I conclude, I want to speak to the area of generational renewal. Supporting young farmers and facilitating generational renewal is critical to ensure a bright future for the agrifood sector. Budget 2026 will provide a number of practical measures for young farmers and their families. The commission on generational renewal in farming recently submitted its report to me. I am pleased that following extensive engagement with my colleague the Minister, Deputy Donohoe, budget 2026 takes the first steps to addressing the commission's recommendations, with a view to supporting the next generation of farmers. Agricultural relief will remain available under current terms to farm families to facilitate succession and the intergenerational transfer of farms. This is the single most important mechanism we have to facilitate the transfer of farms from one generation to the next. It delivers approximately €230 million annually in tax supports to farm families making this significant decision to transfer their land to the younger generation, and is one I never take for granted. I was struck by the presentation earlier from representatives of the Social Democrats, who in their pre-budget submission talked about choices. The proposal to reduce that 90% capital acquisitions tax agricultural relief to 70%, which they would say would generate €60 million, would cut to the heart of what we are trying to do in area of generational renewal. Therefore, while some farmers might take the agricultural reliefs that exist for granted, I definitely do not, and Government definitely does not. They are there for a very good reason, to make sure we get that next generation of young farmers in and support that smooth transition in an area of generational renewal where we have a real challenge.

The 100% young trained farmers stamp duty relief is another vital support for young farmers, valued at around €20 million annually. In line with commission’s recommendation to bring more certainty to succession planning, the relief will be extended by four years instead of the normal three years for such measures. On farm restructuring, capital gains tax relief supports the reduction of farm fragmentation, which makes farms more efficient, contributing to both economic and environmental sustainability. This is matched with complementary stamp duty for farm consolidation relief.

Both of these reliefs have been extended for a longer period of four years, which is the maximum under state aid rules.

As I said, budget 2026 represents the first of five budgets this Government will deliver. It is an important first step that will serve to protect and grow Ireland's agrifood sector and the significant contribution it makes to our rural and national economy. I look forward to continuing to work to deliver for this sector in the years ahead.

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