Johnny Brady (Meath, Fianna Fail)
Link to this: Individually | In context

Question 158: To ask the Minister for Agriculture and Food the Government's measures to assist young farmers here. [26172/05]

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

While Ireland has a greater percentage of younger farmers less than 35 years of age at 11%, compared to the EU average of 8%, the Government, in recognition of the importance of attracting young farmers into agriculture, has put in place a range of incentives as follows. Regarding installation aid, under the installation aid scheme operated by my Department, a grant of €9,523 is available to young farmers who are between the ages of 18 and 35 on the date of set-up and who meet the educational and income requirements of the scheme. Expenditure to-date under the scheme, since its introduction in 2001, has totalled €22.365 million. Regarding milk quota, seven young trained milk producers with quotas of less than 350,000 litres have priority access to almost 25% of the restructuring pool. They also qualify for the normal allocations open to all producers.

Since 2003, young trained farmers have been able to acquire quota from the restructuring scheme and set up their own enterprise on the existing family holding provided they form a registered milk production partnership with their parents. To date, almost 350 new entrant-parent milk production partnerships have been established. As part of the milk quota restructuring scheme for 2005, the conditions applying to new entrant-parent milk production partnerships were amended so that all but the very largest producers now have the opportunity to form such partnerships.

Regarding taxation measures, a broad range of taxation incentives is in place to facilitate the transfer of farms to young farmers, especially those with agricultural qualifications. Eligible farmers can avail of 100% stock relief for young trained farmers for four years after set-up, 90% agricultural relief on capital acquisitions tax, 100% stamp duty relief on transfers of agricultural land and buildings to young trained farmers and full relief from capital gains tax is available for farmers over 55 years of age who transfer the farm to a child or nephew or niece. There is also a rental income tax exemption for farmers over 40 years of age to lease-out land on a long-term basis. Annual relief of €7,500 for leases of five to seven years and €10,000 for leases of more than seven years is available. This encourages land mobility to allow more productive farmers to increase production.

In regard to advisory services, Teagasc offers all farmers access to a wide range of independent professional advisory services. Advisory staff are located in a nationwide network of advisory offices and local training centres. All front-line advisory staff are supported by specialists, researchers and laboratory staff from the Teagasc research and development centres. The services are focused on meeting the needs of a diverse farming community and rural society.

In regard to education and training, Teagasc provides the full suite of training for young entrants, farmers, rural entrepreneurs and executives-operatives in the food industry. The organisation has a resource of over 200 teachers and trainers operating from nine colleges, local training centres and research centres. More than 10,000 people attend Teagasc training courses each year. All education and training programmes have recently been evaluated, upgraded and benchmarked to the best international standards.