Written answers

Tuesday, 20 November 2018

Department of Agriculture, Food and the Marine

Budget 2019

Photo of Michael Healy-RaeMichael Healy-Rae (Kerry, Independent)
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486. To ask the Minister for Agriculture, Food and the Marine if changes were introduced in budget 2019 to change the conditions for retiring farmers; and if he will make a statement on the matter. [47751/18]

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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No changes were introduced in Budget 2019 to the conditions for retiring farmers.

Ireland, like most of the EU, has a high proportion of older farmers. The recent Farm Structure Survey found that 55% of farm holders were aged over 55, while just 5% were aged under the age of 35. There are a number of supports provided to young farmers and to support generational renewal. The National Reserve and the Young Farmers Scheme under the Basic Payment Scheme were introduced in 2015 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. Supporting young farmers and generational renewal will also form an important part of the Common Agriculture Policy (CAP) post 2020 and the Department of Agriculture, Food and the Marine will progress these issues during negotiations on the new CAP proposals.

There are a number of taxation measures specifically aimed at young farmers, the main policy objectives being 1) increasing land mobility and the productive use of land and 2) assisting succession and the transfer of farms. In June 2017, I launched the ‘Succession Farm Partnership Scheme’. The Scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure, promoting and supporting the earlier inter-generational transfer of family farms. It also encourages important conversations within farm families about succession planning. In Budget 2019, I welcomed the renewal by Minister Donohoe of two important young farmer reliefs for the sector:

- 100% Stock Relief on Income Tax for Certain Young Trained Farmers

- Stamp Duty Exemption on Transfers of Land to Young Trained Farmers.

In line with EU state aid requirements, the Finance Bill 2018 limits the amount of aid that can be granted under the various young farmer measures to a lifetime ceiling of €70,000.

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