Farm Business Council Report February 2026
Farm Business Chair Bill O’Keeffe and Secretary Robert Malone met with the main agri banking lenders representatives in December 2025, including Bank of Ireland (BOI), Allied Irish Bank (AIB) and PTSB to highlight the need for more competitive low cost and easy access to loans farmers in 2026. Finance is required for infrastructure, land purchase, and particularly cashflow in 2026. The need for some farmers to restructure merchant debt to structured banking loans was also highlighted and the main banks are very favourable to this laundering in general.
Given the circa 30% reduction in milk price in late 2025, IFA Dairy and Farm Business committees organised one to one meetings with the individual banks above, Finance Ireland and the Strategic Banking Corporation of Ireland (SCBI). IFA Dairy Chair Martin McElearney and Bill O’Keeffe highlighted the need for all lenders to support dairy farmers in 2026 following this sudden and volatile price reduction. There will be a need for additional working capital on most dairy farms in 2026, especially those with higher repayment commitments. The cost of milk production varies from farm to farm but ranges from mid-30’s to low 40’s cent per litre (cpl). With the cost of milk production at an all-time high, many dairy farmers will see their bank account balance come under pressure in early 2026 and the sector must be supported throughout this price volatility.
All banks gave commitments to support all farmers and dairy farmers that need cashflow support in 2026. Increased unsecured limits and lending up to €100k will be available in 2026, but applicants need to be able to produce both historical accounts (previous 3 years) and projection budgets to be successfully approved.
The Farm Business Committee has also maintained regular contact with the Credit Unions, who have increased the total lending to the agri sector, particularly through the Cultivate loan offering. While offering slightly higher interest rates, their ability to meet face to face and the quick loan application turnaround times are a very incentivising feature of the local credit union movement for farmers.
TAMS grant funding was noted by lenders as being a key driver of on farm investment in 2025, and the restriction in Tams by the introduction of rank and selection was noted as a challenge for many farmers and may result in less on farm invest net in 2026.
VALUE-ADDED TAX
The reduction of the Flat Rate Addition from 5.1% to 4.5% from 1st January has created a visible loss of vat for sellers of livestock through marts. The livestock rate remains at 4.8%, resulting in a loss of circa €2.85 per €1000 achieved in the sales ring. IFA have been assisting ICOS and independent marts in engaging with the Department of Finance and this is a priority for IFA to resolve in the Budget this year. While flat rate farmers selling animals to slaughter factories or milk to co-ops processors have also seen their rate of flat rate addition reduce on their sales, it is not displayed as a minus figure on the remittance.
VAT58 reclaims
IFA has continued to engage with Revenue on the slow processing of vat reclaims for infrastructure and eligible items on farms. Revenue office has agreed to join IFA on farm visits to see first-hand some items that are currently been disputed on eligibility by Revenue.
Residential Zoned Land Tax
Budget 2026 gives another opportunity for landowners subject to RZLT to request a change in zoning from their Local Authority and avail of an exemption from Revenue from RZLT liability in 2026.
“There will be an exemption from the 2026 RZLT liability if a landowner applies for a rezoning to reflect the “genuine economic activity currently being carried out on the land.”
Landowners with affected land must apply between 1st February 2026 and the 31st of March 2026 to their local County Council to rezone their land, if they wish to avail of this exemption. Details of how to make a submission for de-zoning are available on each local authority’s web page.
Detailed Information on RZLT and making a submission is also available on RZLT.ie
IFA have campaigned to have a permanent solution that will remove actively farmed land from the scope of residential zoned land tax. This remains the policy of IFA.
Budget 2027 Submission
The annual process of making the IFA Pre Budget submission will start earlier in 2026, to allow for greater lobbying and engagement with the Government, Ministers and elected representatives pre-summer recess of the Dail.
Bill O’Keeffe calls on all IFA Council member to raise Budget 2027 on the agenda of all meeting in the coming weeks to get feedback on the priorities from members at all IFA branch meetings, county executives and commodity meetings.
