Seán Kyne (Galway West, Fine Gael)
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9. To ask the Minister for Agriculture, Food and the Marine the impact the recent changes in the tax regime for farmers will have on encouraging transfer of lands to the next generation; and if he will make a statement on the matter. [42999/14]

Simon Coveney (Cork South Central, Fine Gael)
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Taxation policy is primarily a matter for the Minister for Finance. However I have on-going contact with Minister Noonan to ensure that tax policy reflects the Government’s commitment to agriculture.  In this regard I am pleased that the Minister and I could facilitate the Agri-taxation Review, which was published as part Budget 2015. It gave us a unique opportunity to examine a critical element of Government support to the agriculture sector in the context of the strategy of expansion and increasing exports under Food Harvest 2020.

The Review provides a strong evidence base for continued assistance to the primary sector through taxation measures and it is a clear strategy with specific policy objectives for the future. The Government’s commitment to agriculture is evidenced by the immediate implementation of the majority of the Report’s recommendations in Budget 2015, including 12 new measures, which form part of a strategic policy response to the opportunities and challenges ahead.

One of the taxation policy objectives identified by the Review is to assist succession. The age profile of Irish farmers is increasing and it is recognised that there are many social and economic reasons why succession management is a challenge for farmers. Assisting succession and the transfer of farms has been a central part of the Government’s agri-taxation policy and Budget 2015 included a number of measures to maintain and strengthen that support, specifically:

- The retention and targeting of Agricultural Relief from Capital Acquisitions Tax to active farmers or to those who lease out land long-term.

- The retention and enhancement of Retirement Relief from Capital Gains Tax, including two new measures:

- The extension of the eligible letting period of a qualifying asset to 25 years.

- For transfers other than to a child under Retirement Relief, as a once-off measure until the end of 2016, the inclusion of conacre lettings as eligible. I believe that this measure is significant. It will allow farmers who have been engaged in conacre to avail of Retirement Relief if they transfer or move to long-term leasing before the end of 2016, thereby giving exit options to a large cohort of farmers.