Michael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context

Question 488: To ask the Minister for Agriculture, Fisheries and Food the progress made in relation to the programme for Government proposal to implement measures, including taxation measures, in order to assist farmers in maximising their income from farming and achieving optimum structures and scale; and if he will make a statement on the matter. [28542/08]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

The State's role is to facilitate a climate that assists competitive drive and innovation, for example, through the implementation of the Agri Vision 2015 Action Plan. At EU level a range of market support measures are operated, while the exchequer and the EU together also provide almost €2 billion per year in direct payments to support farm income.

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. 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. It contains a generous Installation Grant Aid for young farmers of €15,000 (an increase of 55% of the previous grant) and the early retirement pension is 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 the structure and scale of Irish farming through early farm transfer or by encouraging greater levels of leasing, land swaps or farm consolidation.