Paula Butterly (Louth, Fine Gael)
Link to this: Individually | In context | Oireachtas source

126. To ask the Minister for Agriculture, Food and the Marine his views on the operation of the agri-tax initiatives to help farmers and farm families with succession planning; and if he will make a statement on the matter. [13816/25]

Martin Heydon (Kildare South, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Taxation policy is primarily the responsibility of my colleague, the Minister for Finance. However, both Departments work closely to ensure taxation policy is consistent with Government priorities for the agri-food sector.

The new Programme for Government prioritises “supporting inter-generational farm succession”. Food Vision 2030, our shared strategy for the agri-food sector, states that generational renewal in farming is critically important to ensure the future viability and social sustainability of the Irish agri-food sector and of rural Ireland.

There are a number of supports currently available to young farmers under Ireland’s CAP Strategic Plan (CSP) 2023-2027. These supports are complemented by a suite of strong national taxation measures to ensure a coherent approach to address this issue.

Succession and the early transfer of family farms is supported mainly by Agricultural Relief from Capital Acquisitions Tax and Stamp Duty exemptions. In 2023, the latest year for which figures are available, “Agricultural Relief” along with “100% Stamp Duty Relief for Young Trained Farmer” and “Consanguinity Stamp Duty Relief”, provided support of some €326 million. 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.

In addition, for land mobility, long-term leasing income tax relief supports access to land for young farmers and provides a route to retirement for older farmers.

Despite the significant existing supports, the age demographic of farm-holders is not improving. The most recent figures available show that only 4.35% of farm-holders are under 35 years of age, and some 37% of farmers are over 65.

Farm succession is a complex issue and there are many factors that impact farmers’ decisions. Last October, an independent Commission on Generational Renewal in Farming was established. The Commission is adopting an objective, evidence-based approach to examining all the complex factors involved that contribute to the age demographic in the sector. It is engaging closely with stakeholders, including a public consultation. As part of the Food Vision process, a report is due on policy options before the end of June this year.

I look forward to receiving that report, which will ensure that we have an objective analysis of the issue in advance of preparations for the next CAP.