IFA Discuss Pre-Budget Submission with Ministers Donohoe and Chambers

IFA President Francie Gorman led a delegation to a pre-Budget meeting with Ministers Paschal Donohoe and Jack Chambers today.

The presentation from the IFA delegation focused on the two pillars of our submission: expenditure and taxation measures, and what they can do to offset the cost of doing business.

“Both have elements that we have identified as central to the future development of the farming sector. While we have a comprehensive suite of proposals in our pre-Budget submission, there are three priorities that made up most of the discussion with the two Ministers and their officials,” he said.

“On the expenditure side, we highlighted the need for additional support for vulnerable sectors (in particular tillage); an increased TAMS Budget; and ringfenced funding for agriculture from Infrastructure, Climate and Nature Fund.”

Francie Gorman said the tillage sector is in a perilous situation, with morale among growers at an all-time low. “The stated aim of the Department of Agriculture is to have more ground in crops. Unless there is a package in the October budget, this will not happen.”

“The overall budget for TAMS has to increase to meet the demand that exists across a range of sectors. Everybody acknowledges that inflation is running far ahead of the reference costs. This has to be adjusted and a mechanism developed that tracks the rising price of materials,” he said.

The IFA President said the potential for energy from farms has to be harnessed through the Infrastructure, Climate and Nature Fund. “Farmers will need support to deliver the climate action-related infrastructure. Certainty is needed by ring fencing funding that will allow farmers to embark on projects that will bring about emission reductions and other environmental benefits,” he said.

On the taxation side, our priorities are the renewal of existing tax reliefs; a permanent exemption for actively farmed land from RZLT; and Agricultural Relief tax that encourages generational renewal.

Francie Gorman said the various tax reliefs are very important for the development of the sector at farm level and their renewal will send a positive signal to farmers.

“The Residential Zoned Land Tax has hung over farmers for too long. It is time for a permanent exemption for those farmers who wish to continue to farm their land without the prospect of a large tax bill facing them,” he said.

The IFA President said the delegation reinforced the central role that Agricultural Relief has in promoting the next generation into farming full time. “We are clear that this should be available to farm families who wish to hand on their farm in a way that works for both generations.”

The issue of the ‘forgotten farmer’ was also raised at today’s meeting.  “A more ambitious Long Established Young Farmer scheme has to be delivered that caters for all eligible farmers, including those starting out in 2008 and thereafter. The support must be at least equivalent to what they would have received under the Installation Aid,” he said.