Aindrias Moynihan (Cork North West, Fianna Fail)
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46. To ask the Minister for Agriculture, Food and the Marine his considerations for new measures to incentivise young farmers; and if he will make a statement on the matter. [38543/22]

Charlie McConalogue (Donegal, Fianna Fail)
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Measures to incentivise young farmers have been a key feature of my support in the promotion of generational renewal in Irish agriculture. It is crucial that we have new blood coming into the sector and I am a stroing advocate of generational renewal. New measures to underpin this support for young farmers are planned for the new CAP from 2023.

The CAP Strategic Plan submitted to the EU Commission at the end of December 2021 contains proposed support measures for young farmers. Under Pillar I of the next CAP Ireland has proposed support for young farmers as a priority category under the National Reserve to provide for an allocation of payment entitlements at the national average value on eligible land for which the young farmer holds no entitlements, or topping up low value entitlements held by the young farmer to the national average.

Ireland has also proposed utilising the option to implement the Complementary Income Support for Young Farmers. This scheme will see an additional payment per hectare made to eligible young farmers, subject to a maximum of 50 hectares, for a period of five years. An amount of €35.5 million will be provided in supports to young farmers each year from 2023 to 2027 under this scheme.

This will see average payments of some €175 per hectare to eligible young farmers from 2023-2027, compared to the average payment of some €68 per activated payment entitlement under the Young Farmers Scheme 2015-2022.

Under Pillar II of the next CAP, it is proposed that a grant rate for young farmers for Capital Investments will be 60% with an indicative investment ceiling limit to be applied of €90,000 per holding and €160,000 per holding for partnership applications.

This level of grant rate is proposed in order to support young farmers and specifically to enable them to take on any necessary on farm infrastructural improvement work. This 60% grant rate compares favourably to the general 40% rate and is designed to be a significant support for qualified young farmers.

Additional support to young farmers is also provided under the Collaborative Farming Grant Scheme. The proposed supports for young farmers under the next CAP will be subject to Ireland receiving EU Commission approval for the CAP Strategic Plan.

There are also a range of State backed supports for young farmers. These include strong taxation measures to assist land mobility and facilitate succession and are worth some €200 million per annum. Succession and the early transfer of family farms is supported by Agricultural Relief from Capital Acquisitions Tax and Stamp Duty exemptions.

In addition, the Succession Farm Partnership Scheme provides for a €25,000 tax credit over five years to further assist the transfer of land within a partnership structure to encourage earlier transfer of family farms. Investment and access to land are supported by 100% Stamp Duty Relief for Young Trained Farmers, 100% Stock Relief for Young Trained Farmers and Relief for Long-Term Leasing.

I make an annual Budget submission to my colleague, the Minister for Finance, on matters related to the agri-food sector including the periodic renewal of relevant taxation measures.

On access to finance, the Future Growth Loan Scheme which provides long term investment finance was developed with assisting young farmers among its objectives. The scheme has seen strong demand, with 1,285 loans to the value of €153.4m sanctioned to farmers.

Launched late last year the Brexit Impact Loan Scheme is available through participating banks and credit unions and provides loans to Brexit-impacted Irish businesses for working capital, investment and re-financing.

I am pleased that this loan scheme which replaces the SBCI Working Capital Scheme, comprising the Brexit Loan Scheme and SBCI COVID-19 Working Capital sub-schemes, is available to farmers and fishers as well as food businesses. To date, 620 loans to farmers to the value of €50.2m have been sanctioned.

The Land Mobility Service is a Macra na Feirme initiative supported by numerous stakeholders including my Department. The service provides options for landowners and opportunities for young farmers through advice on and facilitation of collaborative farming arrangements. It has been supported by my Department since 2014 and has seen well over 500 arrangements covering approximately 19,000 hectares being facilitated. My Department is engaged with the Land Mobility Service on future support, and I announced a 100% increase in the funding for 2022 to €100,000.

In addition, Teagasc agricultural education activities will continue to focus on equipping young farmers with the necessary knowledge to build successful careers.