Written answers

Tuesday, 7 July 2020

Department of Agriculture, Food and the Marine

Agriculture Schemes

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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570. To ask the Minister for Agriculture, Food and the Marine his plans to encourage younger entrants into the farming sector considering that the latest Teagasc figures suggest that one in three farmers is over sixty years of age; and if he will make a statement on the matter. [14543/20]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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The National Farm Survey figures just released by Teagasc reflect an ageng demographic trend in farming that is EU-wide. My Department has a range of measures in place to support young farmers and generational renewal, as part of the Common Agricultural Policy (CAP) and nationally.

Under the CAP, the National Reserve and the Young Farmers Scheme provides financial support to young farmers and new entrants to farming during the crucial early years immediately following the setting up of a farm enterprise. Under the Basic Payment Scheme, farmers can apply to the National Reserve for an allocation of entitlements or a top-up to their low value entitlements. Successful applicants can receive support up to the national average unit value per entitlement, which works out at approximately €260 per hectare including greening. Since 2015, the National Reserve has provided almost 8,000 young farmers with a new allocation of entitlements, or a top-up to the value of their existing entitlements. These are allocated on a permanent basis. For example, if a farmer is allocated entitlements from the National Reserve in 2015 worth €5,000, this allocation would have been made in all Basic Payment years from 2015 to 2019, totalling €25,000 over those years. The cumulative effect of these payments from the National Reserve amounts to approximately €137 million over this period.

The Young Farmers Scheme provides a further additional payment to eligible farmers, which comes from an allocation within the national direct payments ceiling. This Scheme was established in 2015 to encourage the participation of younger farmers in agriculture in the initial stages of their career and provided payments of €68 extra per payment entitlement, for a maximum of 5 years, based on activated entitlements. Almost €100m has been distributed to over 8,000 successful applicants each year under the Young Farmer scheme with an average annual payment per young farmer of approximately €2,300.

Additionally, under the TAMS II Young Farmer Capital Investment Scheme, co-funded under the Rural Development Programme, young farmers can avail of the enhanced grant rate of 60% as compared to the standard rate of 40%. Some €101 million has been paid under this Scheme.

There are also a number of national taxation measures aimed at young farmers, specifically the ‘100% Stock Relief on Income Tax for Certain Young Trained Farmers’ (530 claims costing €1.6million in 2017) and the ‘Stamp Duty Exemption on Transfers of Land to Young Trained Farmers’ (1,056 claims costing €16.8 million in 2018). Both of these measures assist farm succession and transfer. Other measures such as the relief from income tax for long-term leasing also benefit young farmers by increasing land mobility.

In addition, in 2017, the 'Succession Farm Partnership Scheme' was launched. This provides for a €25,000 tax credit over five years to further assist with the transfer of farms within a partnership structure, promoting and supporting the earlier intergenerational transfer of family farms. This Scheme also encourages important conversations within farm families regarding succession planning.

Teagasc’s recent publication “Teagasc Education Vision – meeting future needs” outlines the importance of education for young farmers and the development of their skills through education and training. This core function of Teagasc is supported and funded by my Department.

The Future Growth Loan Scheme also provides a source of finance for young and new entrant farmers, especially the cohort that do not have high levels of security. A new tranche of funding under this Scheme will be made available shortly.

Supporting young farmers and generational renewal continues to be a priority for my Department and will form an important part of the CAP post-2020. These negotiations are ongoing but the designation of supporting generational renewal as a key objective of the new CAP reflects the importance and determination to address this challenge, and my Department and I will continue to actively engage on these issues.

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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571. To ask the Minister for Agriculture, Food and the Marine if he will provide a financial support scheme to those poultry farmers who were affected by Avian influenza; and if he will make a statement on the matter. [14544/20]

Photo of Barry CowenBarry Cowen (Laois-Offaly, Fianna Fail)
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I am pleased to inform the Deputy that my Department will provide a once-off financial support scheme for a number of poultry flocks impacted by an outbreak of low pathogenic avian influenza this year.

This particular strain of avian influenza (subtype H6N1) has no food safety implications, but does impact on flock productivity.

I want to acknowledge that the flock owners in question have taken the correct action in depopulating their flocks for the greater good of the sector. In light of the significant economic impact this has had on their business, I am pleased to be able to provide some assistance towards the costs of depopulation which they have incurred.

The affected flock owners will receive details of the scheme including terms and conditions in the coming days.

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