IFA President John Bryan said that tomorrow’s Budget must provide sufficient funding for all farm schemes, and ensure that the taxation reliefs that facilitate restructuring and expansion of a vital export sector are maintained.
Mr Bryan said, “In Budget 2011, funding for farm schemes must be maintained. This funding is redistributed throughout the rural economy, through expenditure by farmers on locally provided inputs, labour, goods and services. As a priority, the AEOS scheme must be extended for all farmers leaving REPS3 and funding for the Suckler Cow Welfare Scheme, Disadvantaged Areas, forestry and other payments must be fully retained”.
On taxation, Mr Bryan said, “A number of key taxation reliefs are in place to encourage structural reform and competitiveness in agriculture. These include capital gains retirement relief and agricultural relief for farm transfer and stamp duty relief, stock relief and capital allowances to promote investment. These reliefs must be retained in Budget 2011, as any reduction would disincentivise farm transfer, investment and consolidation, and place a devastating tax burden on farm families.”
He continued, “In particular, the existing general 25% stock relief and the special 100% relief for young trained farmers provide an important income tax incentive for business expansion, particularly for farmers at the start of their career. It is these farmers who will contribute to the achievement of the Food Harvest 2020 targets, and generate net export earnings for the Irish economy”.