Charlie McConalogue (Donegal, Fianna Fail) | Oireachtas source

I echo the Cathaoirleach's welcome to our guests. I thank Senator Boyhan for raising this important topic.

Generational renewal and ensuring that there is an avenue for the next generation to not only enter our great agriculture, food and farming sector but also to flourish is a core element of my strategy as Minister for Agriculture, Food and the Marine. Despite the many challenges we face, I am convinced that there are bright and exciting opportunities both inside and outside the farm gate. I can assure the Senator and everyone here that generational renewal is at the centre of all our policies in the Department.

The challenge of generational renewal is widely recognised at national and EU level, and farmers at both ends of their careers take a keen interest in this area, unsurprisingly. There are challenges both for younger farmers becoming established and older farmers having concerns about future income, taxation, succession and the retirement process itself.

The new Common Agricultural Policy, CAP, cites generational renewal as one of its nine key objectives. It is also prominent in Food Vision 2030, the new stakeholder-led, ten-year strategy with generational renewal as a key priority. Food Vision 2030 proposes a number of actions, including maintaining the strong level of current support, the promotion of land mobility and succession planning, and increased education and promotion of the diversity of careers in the agrifood sector. This reflects the need for skilled and innovative young farmers to respond to societal demands for quality food and environmental public goods. Supporting younger and older farmers therefore remains a key policy objective.

Given this, there are a range of measures in place at present, both in the existing CAP and at national level, that support younger farmers and facilitate generational renewal. Under the current CAP, this includes the young farmers scheme, the national reserve, the targeted agricultural modernisation schemes, TAMS, II young farmer capital investment scheme and support to establish collaborative farming arrangements. Further assistance is available from national supports, including through taxation measures such as the agricultural relief from capital acquisitions tax, stamp duty exemptions, stock relief and long-term leasing relief, as well as the availability of tax credits via succession farm partnerships. Such interventions, as the Senator knows, are available to all sectors, including dairy, providing vital supports to young farmers in setting up their enterprises and older farmers wishing to retire. They are absolutely crucial.

Ireland’s draft CAP strategic plan proposals reaffirm our commitment to generational renewal. Under these proposals, Ireland will implement the complementary income support for young farmers, dedicating some 3% of the direct payments to help young farmers establish their farming businesses. This allocation of approximately €35 million per year will see qualifying young farmers benefit on a per hectare basis, which will be more advantageous to young farmers than the current system, which was linked to payment entitlements. The proposed rate will significantly increase from approximately €70 per hectare in the current programme to over €170 per hectare, with a maximum payment area of 50 ha and payment on all eligible hectares, even those without corresponding entitlements.

The national reserve will also be utilised to fund at a minimum the mandatory categories of young farmers and new entrants to farming. In addition, a higher grant rate for qualified young farmers is proposed under the capital investment measure.The CAP strategic plan will also continue to provide support for collaborative farming and will propose innovative ways to advise older farmers on succession and their retirement options, which will, very importantly, increase the availability of land for younger farmers.

I recently established the food vision dairy group, to which referred Senator Boyhan referred, which brings together key stakeholders to advance the actions for the dairy sector identified in the strategy. The group has been engaged in constructive dialogue, with discussions on a variety of issues, including the calculation of the current emissions inventory, pathways to reductions in nitrous oxide emissions and the challenge facing the dairy sector in stabilising and then reducing emissions. While nothing is off the table, similarly there are no defined concrete proposals. I expect that an interim report from the group will be submitted to me shortly and I look forward to that.

My key focus is that the farming and agrifood sector remain strong and sustainable into the future. Our farm families and their businesses are world-class as matters stand, and I want to ensure there is a viable future for the sector for many generations to come.