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IFA Budget 2021 report available here.

Reacting to the Budget, IFA President Tim Cullinan acknowledged the renewal of essential tax reliefs and the equalisation of the self-employed tax credit with the PAYE credit and the continued funding of farm schemes.

“We fully accept the challenges facing the State from COVID-19, but we have a further emergency coming in the form of Brexit,” he said.

This Budget needed to give more acknowledge to the imminent threat of Brexit. In 2019 €110m was set aside for a Brexit reserve. We need immediate clarity on the status of this fund and what precisely has been set aside for Brexit. We cannot rely on the EU contingency fund alone,” he said.

 

“One announcement that could also be significant is funding to establish a new Food Ombudsman. However, this must cover the entire food chain and have real teeth” he said.

“The pilot agri-environment schemes will require consultation; however, we need to be clear that carbon tax will impact disproportionately on farmers. The increase in the Carbon Tax will increase the burden on farmers by an extra €6m bringing the total annual cost to over €25m with no alternatives available,” he said.

Taxation measures

The Chair of IFA’s Farm Business Committee Rosemary McDonagh said, “It is positive to see stamp duty reliefs, specifically consanguinity and consolidation relief, renewed in the Budget. These will encourage farm transfer and generational renewal”.

“The equalisation of the Earned Income Tax Credit by €150 to €1,650 is long overdue, but welcome, as is the increase in the flat rate on VAT from 5.4% to 5.6%,” she said.

Farm Schemes

“It is positive to see an allocation for the rollover of farm schemes as part of the CAP transition including GLAS, ANC, TAMS, suckler cow (BDGP & BEEP-S), sheep welfare, and organics,” said IFA Rural Development Chairman Michael Biggins.

“Farm schemes must remain a central part of Government policy, particularly for the low-income dry stock sector,” he said.

“Direct payments are a huge part of family farm incomes. Targeted schemes are increasingly important, many of which have a significant climate action element.”

 

 

At a meeting with the Department of Agriculture today, IFA called for the maximum payout of this year’s farm schemes given the difficulties arising from COVID-19 restrictions.

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IFA Rural Development Committee Chairman Michael Biggins has urged the Department of Agriculture to issue TAMS approvals to all applicants to tranche 18, which closed on Aug 21st last.

 

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IFA National Livestock Chairman Brendan Golden is encouraging farmers to apply for the Beef Finisher payment scheme without delay.

IFA has created a dedicated step-by-step guide for farmers who wish to apply for the scheme.

The Department of Agriculture opened the scheme today, and it will close on Wed, Sept 9th.

Full details are available here.

Brendan Golden said it’s crucial that the money gets out to farmers as soon as possible and that the full €50m is spent.

“There should be a provision to increase the payment per animal if there is any underspend or to bring exported animals which are currently excluded. We cannot leave any of the money behind,” he said.

“The scheme will apply to farmers who had cattle slaughtered between February 1st and June 12th. It’s expected the payment will be in the region of €100 per head. This will be a significant boost for the Autumn cattle trade,” he said.

€50m had been announced in June in recognition of the difficulties that beef finishers had endured because of Brexit and COVID-19 disruption.

If farmers have any queries in relation to the Scheme, they can visit our dedicated hub or contact Anna Daly on annadaly@ifa.ie or by calling 01-4260340.

 

IFA President Tim Cullinan has welcomed the announcement from Minister Dara Calleary on the details of the Beef Finisher payment scheme.

€50m had been announced in June in recognition of the difficulties that beef finishers had endured because of Brexit and COVID-19 disruption.

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