Denis Naughten (Roscommon-South Leitrim, Independent)
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To ask the Minister for Agriculture, Food and the Marine if he has evaluated the combined impact of the budget cuts on farm holdings in the west of Ireland; and if he will make a statement on the matter. [55780/12]

Simon Coveney (Cork South Central, Fine Gael)
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Budget 2013 recognises the key role that agriculture and the agrifood industry has to play in Ireland’s economic recovery. The measures introduced build on those introduced in Budget 2012 and will enable the sector to continue its success in realising the objectives of Food Harvest 2020.

100% Stamp Duty Relief and 100% stock relief for Young Trained Farmers are both being extended, as is the ordinary 25% stock relief for other farmers.

I am also happy that new Capital Gains Tax provisions have been introduced to facilitate restructuring of farm land parcels. When taken together with the large reduction in Stamp Duty last year this measure should encourage farmers to restructure their holdings to improve efficiency.

These taxation measures will directly benefit farmers in the West of Ireland and elsewhere.

The tax changes in Budget 2013 incentivise inter-generational land transfer and facilitate farm re-structuring to improve efficiency. This is a clear message of support to the many dynamic younger farmers who plan to expand production over the coming years that I want to help them achieve their ambitions. These changes will also help the sector realise the Food Harvest 2020 targets and increase agrifood exports.

Budget 2013 was a difficult one for the Government, involving many tough decisions. Although constrained by tight budgetary disciplines imposed right across the economy, I was determined to minimise the impact of the scale of the reduction so that the most important schemes and programmes which the sector relies upon most were protected to the greatest extent possible.

I am pleased to say that, through re-orientating and re-scheduling payments, I have managed to fund new schemes and programmes while also reducing the scale of savings to a lower amount of €89 million compared to 2012, while protecting farm incomes. The 2013 budget reflects a significant Exchequer commitment of support for the agrifood sector and is recognition of the contribution which the sector can make to economic recovery and future growth. Of particular interest to farmers in the West of Ireland is the increased allocation of €195 million in support of disadvantaged area payments. This was done to underline my commitment to the protection of income for smaller farmers andprotect farmers in disadvantages areas. I have decided to focus on the protection of the smaller and most disadvantaged, including mountain sheep holdings whose payments will remain unchanged next year. In order to make the necessary adjustment, I intend to reduce the maximum area payable from 34 to 30 hectares. This will not be applied to farmers in mountain areas. These measures will mean that 72% of farmers will have no change in their income resulting from this change.