Marcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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Question 22: To ask the Minister for Agriculture, Food and the Marine the effect the changes outlined in budget 2012 will have on beef farmers; and if he will make a statement on the matter. [38940/11]

Simon Coveney (Cork South Central, Fine Gael)
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There were a number of changes in the recent budget which will have an impact on beef farmers and which also will support the Food Harvest 2020 objectives, contributing to jobs and growth in the sector. While it was of course necessary to reduce public expenditure overall I have been able to continue with important measures for suckler farmers, for those in disadvantaged areas and to introduce a new Beef Technology Adoption Programme.

The Suckler Cow Welfare Scheme will continue to be fully funded from national funds. In particular, despite the financial constraints faced, I will continue to provide the necessary funding to meet all payments due in 2012 at the current rates.

For farmers benefitting under the Disadvantaged Areas Scheme, there will be no changes in either the rates or the maximum eligible areas qualifying for payment despite the fact that expenditure will be reduced by some €30 million in 2012. This lower financial limit will be achieved by the introduction of targeted reform in the Disadvantaged Areas Payments, which will be achieved through changes to the stocking density minimum requirements, retention period and other elements of the scheme. The changes being introduced will focus the level of funding available on active farmers, who are making a valuable contribution to the rural economy.

I have allocated €5m towards the establishment of a Beef Technology Adoption Programme which will build on the work done to date under the Better Farm Programme. The roll-out of the Beef Discussion Groups will give beef farmers access to a range of additional skills to increase productivity. This programme was a key recommendation of the Beef 2020 Activation Group.

The taxation measures announced in Budget 2012 reflect this Government's commitment to the agri-food industry and in particular to the expansion planned in the Food Harvest 2020 strategy. As the tax measures announced have been designed specifically to encourage farming as a career for young people and to incentivise farm partnerships and greater productivity at farm level, I feel confident that they will be of great benefit to active farmers, including those in the beef sector.

The main measures in the Budget which will benefit the agri-food sector are as follows:

· a stock relief incentive to encourage Farm Partnerships;

· reduction in the stamp duty rate on agricultural land from 6% to 2%, so as to stimulate land sales and land transfers;

· restructuring of Capital Gains Tax retirement relief so as to encourage inter-generational transfer.

I am satisfied that these measures will help to address, in a strategic way, the issues relating to land mobility and consolidation and will help to bring new blood into farming including beef farming.