Bernard Allen (Cork North Central, Fine Gael)
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Question 194: To ask the Minister for Agriculture and Food her plans to increase land mobility; and if she will make a statement on the matter. [3579/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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A number of schemes and reliefs have been introduced in recent years to bring about improvements in farm structures. Low levels of land mobility remain an obstacle for those who wish to enter farming or expand the size of their holding. However, leasing has become an increasingly popular means of securing land as the volume of land sold on the open market declines and land prices rise.

At present there are a number of 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 €12,000 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.

Budget 2007 includes a number of provisions to further encourage land mobility and farm consolidation. The measures include a third rental income exemption threshold of €20,000 for leases of 10 years or over; stamp duty relief for farm consolidation where only one farmer is consolidating his holding; and a provision whereby farmers who are leasing out land can still, subject to certain conditions, qualify for Capital Gains Tax retirement relief.

In addition, increased support for land mobility is being provided through a range of enhanced measures included in the draft Rural Development Plan 2007-2013. The Installation Grant Aid for young farmers is to be increased by 55% to €15,000 and a maximum early retirement pension of €15,000 per annum is being provided for farmers who dispose of their land by gift, sale or lease.

All these measures help to improve land mobility through early farm transfer or by encouraging greater levels of leasing, land swaps or farm consolidation.