Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 313: To ask the Minister for Agriculture and Food her views on the farm consolidation and the impact of compulsory purchase orders on farm holdings; and if she will make a statement on the matter. [15468/05]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Low levels of land mobility as well as the small, fragmented nature of farm holdings have always been regarded as obstacles to the development of a competitive agrifood sector. The development of an Irish agrifood sector that is internationally competitive continues to be a priority for my Department and this will become even more critical following the switch to the single payment scheme. At farm level, many producers will be required to increase the scale of their farming enterprises to operate on full-time competitive basis.

To facilitate the development of a competitive agrifood sector, my Department offers a range of supports aimed at improving the viability of farm holdings. These include on-farm investment grants as well as measures to support land mobility such as installation aid and an early retirement scheme. A range of reliefs are available through the taxation system with objectives to reduce costs associated with the exchange of farm land. For example, 100% stamp duty relief on farm transfers to young trained farmers, 90% agricultural relief on capital acquisitions tax, 100% stock relief for four years from setting up as a young trained farmer, and retirement relief from capital gains tax on disposals of up to €500,000 by farmers over 55 years.

Furthermore, there is a generous income tax exemption for land leased out on a long-term basis. This is available to farmers over 40 years who lease out land to non-family members for a period of five years or more. Last year's budget made provision for stamp duty relief, worth €1million in a full year, for farmers who exchange land for the specific purpose of consolidating their farm holdings. This relief will allow farmers who exchange farm land for the purposes of consolidating their holdings to pay stamp duty only in respect of the amount equal to the difference in the values of the lands concerned, which must be payable in cash. This relief is to be available for a two-year period from 1 July 2005 to 30 June 2007.

These positive measures provide valuable relief to farmers wishing to develop the viability of their farms through consolidation or other means and will help reduce some of the high costs associated with the exchange of farm land allowing farmers to farm more efficiently in the post decoupled era.

In regard to compulsory purchase orders, the power of public authorities to compulsorily acquire property required for the performance of their functions in the overall community interest has long been a feature of the law. While this can create difficulties for farmers and farm consolidation, landowners whose property is compulsorily acquired are adequately compensated. Compensation packages include one or more of the following elements: the market value of the property acquired; damage arising from the severance of land acquired from land retained by the owner; and damage arising from the injurious affection of lands retained, and disturbance and other matters not related to the value of land.

Apart from the above statutory compensation, under a 2001 agreement between the National Roads Authority and farmer representatives, if land is compulsorily acquired or to be acquired in relation to national roads development under the National Development Plan 2000-2006, a fixed payment of €5,000 per acre is paid to the landowner, in addition to all other payments.