Written answers

Wednesday, 29 November 2006

Department of Agriculture and Food

Land Mobility

9:00 pm

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 102: To ask the Minister for Agriculture and Food her plans to increase land mobility; and if she will make a statement on the matter. [40479/06]

Photo of Mary CoughlanMary 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 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. However, land leasing is now much more common than in the past.

Proposals for a new, enhanced early retirement and installation aid schemes have been included in the draft Rural Development Plan for the period 2007-2013. This plan is currently open for public consultation before being submitted to the European Commission. It provides for total public expenditure of €6.8 billion across a range of measures for the agri-food sector over the next seven years. Increased support for land mobility is being provided through a substantial increase in the installation aid grant. The rate of this grant will increase by 55% to €15,000 compared with €9,520 under the current scheme. An increased maximum pension of €15,000 is also provided for under the new early retirement scheme. Payment rates are also being increased for existing pensioners.

In addition, there are a number of other generous schemes and reliefs aimed at encouraging land mobility and reducing the cost of transfers to young trained farmers. These include:

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.

Capital Gains Tax — Retirement Relief for farmers aged over 55 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 swap for the purpose of farm consolidation between two farmers.

These incentives help 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.

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