Joe Costello (Dublin Central, Labour)
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Question 137: To ask the Minister for Agriculture, Fisheries and Food if he will reintroduce supports and incentives to encourage young farmers to stay in agriculture; and if he will make a statement on the matter. [19625/08]

Joan Burton (Dublin West, Labour)
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Question 149: To ask the Minister for Agriculture, Fisheries and Food the supports in place for young farmers to help redress the age profile in agriculture; and if he will make a statement on the matter. [19623/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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I propose to take Questions Nos. 137 and 149 together.

A number of schemes and reliefs have been introduced in recent years to bring about improvements in farm structures and the age profile of the sector. In 2005, 8% of farmers were under the age of 35 and they farmed a similar proportion of farmland. The Irish age structure is in line with the EU average. To maintain this structure, there are a number of generous schemes and reliefs aimed at encouraging the early transfer of farms to young farmers and reducing the tax burden of such transfers on farmers. In particular, the Rural Development Plan 2007-2013 includes a range of enhanced measures to improve the structure and competitiveness of Irish farming. The new Rural Development Plan 2007-2013 contains a generous Installation Grant Aid for young farmers of €15,000 (an increase of 55% of the previous grant). The early retirement pension also increased to a maximum €15,000 per annum for farmers who dispose of their land by gift, sale or lease.

Other incentives for early farm transfer include:

100% stamp duty relief for on transfers of agricultural land and buildings to young trained farmers;

100% stock relief for up to four years for young trained farmers;

90% agricultural relief from capital acquisitions tax;

Higher grant rates for young trained farmers under the farm improvement scheme;

Capital Gains Tax — Retirement relief on farm disposals up to the value of €750,000 and marginal relief on disposals above this threshold.

Also the Finance Act 2007 included a number of provisions to facilitate greater levels of land mobility and farm consolidation. The measures include a third rental income exemption threshold — €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. All these measures help to improve land mobility through early farm transfer or by encouraging greater levels of leasing, land swaps or farm consolidation.