Michael Healy-Rae (Kerry, Independent)
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791. To ask the Minister for Agriculture, Food and the Marine his views on a matter (details supplied) regarding income averaging in the farming community; and if he will make a statement on the matter. [26716/16]

Michael Healy-Rae (Kerry, Independent)
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804. To ask the Minister for Agriculture, Food and the Marine his views on whether income averaging should be amended to provide extra flexibility in a year when income falls significantly; and if he will make a statement on the matter. [26818/16]

Michael Creed (Cork North West, Fine Gael)
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I propose to take Questions Nos. 791 and 804 together.

The publication of the ‘Agri-taxation Review’ in Budget 2015 put in place a comprehensive taxation strategy for the sector. The Government’s commitment to agriculture was evidenced by the implementation of the Review’s recommendations over the past two budgets. This has seen a series of positive changes for Irish agriculture, especially in the areas of land mobility and succession, all of which will support the aims of Food Wise 2025 in terms of increasing the productivity of Irish farms.

The Agri-taxation Review included two recommendations specifically to help address farm income volatility, both of which were introduced in Budget 2015:

- Retain and enhance ‘Income Averaging’ by increasing the period from 3 to 5 years, providing more scope for income smoothing within a commodity price cycle.

- Allow averaging to be availed of where a farmer and/or their spouse receive income from an on-farm diversification trade or profession.

Of course recent difficult market conditions have brought renewed focus to this issue. The ‘Programme for a Partnership Government’ states regarding agri-taxation:“We will also investigate taxation measures aimed at supporting farmers through periods of volatility”. Consideration of this and the various issues involved is ongoing in the context of Budget 2017 deliberations with my colleague the Minister for Finance.