Malcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

The Senator is correct, and I wish my colleague, the Minister for Agriculture, Food and the Marine, Deputy McConalogue, the very best in the ongoing negotiations, which are critical in the context of the future viability and sustainability of farming in Ireland. We will certainly fight Ireland's case in that regard.

The Senator is correct about the significant challenge. The challenge of generational renewal is widely recognised at both national and EU levels. It is about anticipating and managing risk. Slightly more than 5% of farmers in Ireland are under 35 years of age. Supporting young farmers and facilitating generational renewal are critical to ensuring a bright future for the agrifood sector. This challenge is not unique to Ireland because there are similar statistics throughout the EU. Generational renewal has been cited as one the key objectives of CAP. Under the new CAP proposals, member states will have to incorporate in their CAP strategic plans comprehensive plans to develop young farmers and encourage farm succession. Commission proposals have suggested an amount equal to 2% of the direct payments envelope for this purpose. During the negotiations, it has been suggested that this funding should be increased. This issue is being considered. Unfortunately, Ministers were unable to reach a conclusion on this CAP reform proposal last week in Brussels. However, all parties have indicated their willingness to support young farmers.

At national level, the programme for Government states that we must nurture and protect the generational nature of Irish farming by providing opportunities for new farmers and producers to enter the sector in a financially viable way. A suite of measures is in place to support young farmers. Under the current CAP, the national reserve for young farmers scheme provides financial support to young farmers during the critical early years when setting up. Additionally, under the targeted agriculture modernisation schemes, TAMS, II young farmer capital investment scheme, young farmers can avail of a 60% grant rate as compared to the standard rate of 40%. There is also support available for collaborative farming to cover legal costs incurred. From 2015 to 2020, some €110 million was issued in total under the young farmers scheme, benefiting an average of over 8,000 farmers each year. A further €35 million has been allocated since 2015 to young farmers under the national reserve. Under TAMS II, over €125 million has been paid to approximately 4,974 young farmers.

There are a number of significant taxation measures available to young farmers. To assist succession, there is agricultural relief from capital acquisitions tax, retirement relief from capital gains tax and stamp duty exemptions on transfers of land. In addition, the succession farm partnership scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure. To facilitate land mobility, there is long-term leasing income tax relief. It allows young farmers and new entrants to the sector to gain access to land. It also provides a route to retirement for older farmers, assisting in generational renewal. A 100% stock relief on income tax for certain young trained farmers also assists young farmers in the setting up phase. The most recent figures published by the Revenue Commissioners for all these measures show that there was an annual support of over €228 million provided across various national tax reliefs. The future growth loan scheme supports strategic long-term capital investment. Loans of up to €500,000 are unsecured, making it a viable source of finance for young and new entrant farmers. It has seen huge demand, with 38% of the number of loans, 1,269 loans worth €150 million, sanctioned to date.

The Department of Agriculture, Food and the Marine's statement of strategy and the draft agrifood strategy to 2030 are currently out for public consultation. These have set out objectives to improve generational renewal. Supporting young farmers and generational renewal continues to be a priority of the Government. The Department will continue to actively engage with stakeholders on this issue.