Written answers

Tuesday, 4 October 2022

Department of Agriculture, Food and the Marine

Agriculture Industry

Photo of Carol NolanCarol Nolan (Laois-Offaly, Independent)
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747. To ask the Minister for Agriculture, Food and the Marine if he will give detailed consideration to the recommendations and requests of a pre-Budget 2023 submission by a farming organisation (details supplied); and if he will make a statement on the matter. [48023/22]

Photo of Charlie McConalogueCharlie McConalogue (Donegal, Fianna Fail)
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My Department engages with stakeholders on an ongoing basis and I met with the organisation named in advance of the Budget to discuss their submission. The issues raised were considered in the context of Budget 2023 deliberations.

On Tuesday 27th September, I announced details of my Department’s 2023 Budget. The 2023 Estimates provide a gross Vote of €2.14 billion, the highest ever level of funding for the Department, and represents an increase of €283m on the 2022 provision, or a 13% increase overall, to support farmers, fishers, and rural and coastal communities.

This budget supports farm families dealing with the immediate and ongoing fallout of the illegal invasion of Ukraine and lays the groundwork for strategic supports for the sector over the next five years, through the new €10 billion CAP Strategic Plan (CSP). I have secured up to €500m in 2023 to support farmers in their efforts to tackle the challenges in climate, biodiversity and water quality, including funding for 30,000 places in a new flagship agri environment scheme, ACRES. I am introducing an €8m grant aid scheme to support the spreading of lime, as well as an enhanced Multi Species Sward / Red Clover scheme, helping farmers deal with rising fertiliser prices and move towards the reduction of chemical fertiliser. I have also secured an increase in the TAMS budget to €90m, to fund the proposed large-scale investment in on-farm renewables for farmers, subject to the approval of the European Commission. This will help fund the proposed increase to 60% grant rate and a standalone investment ceiling of €90,000 for solar installation.

Separately, I am seeking EU Commission approval for a new scheme to continue the beef welfare measures which were previously funded under BEEP-S. This new scheme will sit alongside the new €150/cow Suckler Carbon Efficiency Scheme, and a €20 million Sheep Welfare Scheme, maintaining the budget for targeted beef and sheep supports of over €100 million. Beef and sheep farmers will also be well placed to benefit from the enhanced supports for fodder aid, for environmental measures and the supports available for the supports available for farmers transitioning to organic farming.

While taxation policy is primarily the responsibility of my colleague the Minister for Finance, I work closely with him to ensure that it is consistent with the Government's priorities for the agri-food sector.

I am delighted that we agreed a new Accelerated Capital Allowance for Slurry Storage. This will drive further investments in slurry storage and management, consequently improving water quality, facilitating nutrient-use efficiency that reduces dependence on expensive artificial fertilisers, and reducing emissions. This measure is a strong signal of this Government’s commitment to supporting farmers in improving environmental sustainability.

We also agreed on the renewal of vital tax reliefs including Stamp Duty Relief for Young-Trained Farmers and Stock Relief for Young-Trained Farmers and Registered Farm Partnerships. Generational renewal is critical to the future of the agri-food sector and national taxation measures, together with the support available under the CAP, represent a substantial commitment to young farmers. The renewal of Capital Gains Tax Relief for Farm Restructuring and Stamp Duty Relief for Farm Consolidation encourage the consolidation of farm holdings, reducing fragmentation and improving the operation and viability of farms.

The Government has provided welcome supports in response to the current cost of living crisis. The Temporary Business Energy Support Scheme will provide important support to businesses including farmers and food businesses. The continuation of the reduction of excise duty on agricultural diesel to nil will also help alleviate costs for the sector.

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