Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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728. To ask the Minister for Agriculture, Food and the Marine the incentives there are for young farmers who are considering working in their home farm after completing their agricultural courses; and if he will make a statement on the matter. [11943/17]

Michael Creed (Cork North West, Fine Gael)
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The National Reserve and Young Farmers Scheme were introduced under the reform of Direct Payments in 2015. These schemes were designed to provide financial support to young farmers and new entrants to farming during the crucial early years immediately following the setting up of a farming enterprise.

The National Reserve provides for an allocation of entitlements at the national average level or a top-up on existing entitlements that are below the national average to two mandatory categories of ‘young farmer’ and ‘new entrant to farming’. The Young Farmers Scheme is a separate scheme that provides for an additional payment to young farmers based on activated entitlements. Successful applicants under both schemes are required to meet agricultural educational qualification standard at FETAC Level 6 or equivalent.

The Young Farmer’s Scheme will operate from 2015 to 2019. EU Regulations set down the definition of a ‘young farmer’ for the purposes of eligibility for the National Reserve and the Young Farmers Scheme as follows:

- S/he is participating in the Basic Payment Scheme in the year in which s/he submits an application;

- S/he is no more than 40 years of age at any time during the calendar year in which s/he first submits and application under the Basic Payment Scheme;

- S/he is setting up  an agricultural holding for the first time or has set up such a holding during the five years preceding the first submission of the the Basic Payment Scheme application.

In 2015 the National Reserve fund was based on a 3% cut to the Basic Payment Scheme financial ceiling and provided some €24 million. Some 6,260 applicants were allocated entitlements under the 2015 National Reserve. I recently announced that funding of just over €5 million will be made available to fund a National Reserve in 2017. Full details in relation to the application process for the National Reserve and the Young Farmer’s Scheme in 2017 will be available in the coming weeks and will be widely advertised in the farming media and on my Department’s website.  The closing date for applications under both schemes will be 15th May 2017.

The Young Farmer Capital Investment Scheme of TAMS II provides grant aid for a range of investments aimed at facilitating the entry of farmers and generational renewal. The TAMS Scheme specifically targets support at young farmers by offering them a greater rate of aid intensity at 60% compared to the standard grant aid rate of 40%. In addition, support is being provided for grant aid for dairy buildings specifically for qualifying young farmers.

There are a number of tax measures specifically aimed at young farmers, specifically ‘100% Stock Relief on Income Tax for Certain Young Trained Farmers’ and ‘Stamp Duty Exemption on Transfers of Land to Young Trained Farmers’. The Agri-taxation Review was published as part of Budget 2015 and set out the main policy objectives for continuing support through agri-taxation measures including:

- Increasing land mobility and the productive use of land

- Assisting succession and the transfer of farms.

Both objectives are especially relevant to young farmers and Budget 2015 included a number of new measures in this regard, as well as measures to enhance and strengthen the existing supports.

In addition I recently announced that the ‘Succession Farm Partnership Scheme’ has been approved and administrative arrangements are being finalised for its commencement this year. The Scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure and will promote the earlier inter-generational transfer of family farms. It will encourage and support important conversations within farm families about succession planning.