John Deasy (Waterford, Fine Gael)
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Question 55: To ask the Minister for Agriculture and Food her plans to increase land mobility; and if she will make a statement on the matter. [23611/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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There has been some improvement in farm structures in recent years, however, low levels of land sales and land mobility can be obstacles for those who wish to enter farming or expand the size of their holdings. The volume of agricultural land being offered for sale is at historically low levels while land prices have risen dramatically.

The amount of agricultural land sold has declined by 71% between 1995 and 2004, while the average price of agricultural land has increased from €5,641 to €16,261 per hectare over the same period. Clearly, the lack of land available for sales combined with high sale prices can act as constraints on some farmers. In order to overcome this, many farmers who wish to expand production are opting to lease or rent farmland. Approximately one-fifth of farm land was leased in 2003, the latest year for which data is available.

In order to encourage land mobility, and to reduce the costs of land transfer, the Government has a number of incentives in place, these include:

An Early Retirement Scheme pension of up to €13,515 for a period of 10 years on farms transferred by gift, sale or lease.

An installation aid grant of €9,520 for young trained farmers.

Capital Gains Tax — Retirement Relief for farmers over 55 years.

A rental income tax exemption of up to €15,000 for farmers over 40 years who lease out land for a period of 7 years or more.

A rental income tax exemption of up to €10,000 for farmers over 40 years who lease out land for a period of 5 to 7 years.

A 90% Agricultural Relief from Capital Acquisitions Tax.

The provision of full Stamp Duty relief for young trained farmers.

Stamp Duty relief for land swapped for the purpose of farm consolidation between two farmers.

These incentives helps to improve land mobility through early farm transfer, encouraging leasing and land swaps. These, in turn, help improve the availability of land to farmers who wish to enter farming or increase their scale of production.