Written answers

Thursday, 9 March 2017

Department of Agriculture, Food and the Marine

Farm Enterprises

Photo of Niamh SmythNiamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

22. To ask the Minister for Agriculture, Food and the Marine his plans to address the numbers abandoning farming as a profession; his views on whether, if farming is not made attractive to young farmers, half of the countryside will be planted in forestry in ten years time with hundreds of jobs lost in the farming sector as a result; and if he will make a statement on the matter. [12193/17]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

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. 

A young farmer is defined as a farmer aged no more than 40 years of age in the year when they first submit an application under the Basic Payment Scheme and who commenced their farming activity no more than five years prior to submitting that application.  A new entrant to farming is defined as a farmer who commenced their agricultural activity during the previous two years and did not have any agricultural activity in their own name and at their own risk in the five years preceding the start of the present agricultural activity.

The National Reserve provides for an allocation of entitlements at national average value or a top-up on existing entitlements that are below the national average value to two mandatory categories of ‘young farmer’ and ‘new entrant to farming’. The National average value of entitlements is approx. €185. In 2015 the National Reserve fund was based on a 3% cut to the Basic Payment Scheme financial ceiling and provided some €24 million in funding. Some 6,250 applicants were allocated entitlements under the 2015 National Reserve.  The Young Farmers Scheme is a separate scheme that provides for an additional payment to young farmers based on activated entitlements.  Over €24 million is allocated to the Young Farmers Scheme each year from 2015 to 2019.  The National Reserve and Young Farmers schemes together with the value of associated Greening payments provided for an allocation of Pillar 1 payments in excess of €52.5 million in Ireland in 2015.

I was glad to announce recently 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.

Comments

No comments

Log in or join to post a public comment.