James Reilly (Dublin North, Fine Gael)
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Question 74: To ask the Minister for Agriculture, Fisheries and Food the measures she proposes to facilitate farm consolidation. [27130/07]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Government has a number of incentives in place that encourage greater levels of land mobility and farm consolidation. These include:

An Early Retirement Scheme pension of up to €15,000 for a period of up to 10 years on farms transferred by gift, sale or lease.

An installation aid grant of €15,000 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 €12,000 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 swap for the purpose of farm consolidation between two farmers.

Budget 2007 included 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. With regard to Stamp Duty, further reform by way of relief for land swap for the purpose of farm consolidation, which would facilitate consolidation between more than two farmers, is awaiting EU State Aid approval.

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