Next week is decision time for the Government. What they have agreed to do for agriculture will define their commitment to the sector.

IFA is clear that in Budget 2016 the Government must deliver on its funding commitment to the Rural Development Programme. Funding of €580m must be provided for RDP farm schemes in this October’s budget, the requirements for which are outlined below.

There are a number of specific areas that need attention. The new Knowledge Transfer Programme will have to accommodate mixed cattle and sheep farms. The decision to exclude sheep fencing from TAMS II was a mistake. It will have to be rectified. Grain farmers need to know the full extent of the Government commitment to funding storage facilities.

The recovery evident in the public finances and the measurable contribution of agriculture and the agri-food sector to economic recovery provides a strong justification for the reversal of cuts to farm schemes and full implementation of new schemes under the 2014 - 2020 Rural Development Programme.

This funding will deliver programmes of support for low-income farmers, support the provision of environmental services, encourage young farmers, promote on-farm investment and support farming in marginal areas. Expenditure priorities for farming in Budget 2016 are:

  • funding of €220m must be allocated for agri-environment schemes in Budget 2016, with full payments for all GLAS and AEOS participants;
  • full-year payments under the Beef Data and Genomics Programme must be provided for all qualifying animals in Budget 2016;
  • that funding of €15m is allocated for the rollout of Knowledge Transfer programmes for farmers across all sectors in 2016;
  • funding of €40m is allocated to the TAMS II programme in 2016, to cater for all sectors;
  • A targeted payment for the ewe flock, requiring a funding allocation of €25m in Budget 2016; and
  • An increased funding allocation for the TB Eradication Programme, to include increased consequential loss payments for farmers to align the level of support with actual income foregone.

    • The outcome of the comprehensive review of agri-taxation in 2014, undertaken jointly by the Departments of Finance and Agriculture, represented real progress, with the retention, enhancement and targeting of key measures to improve land mobility, farm restructuring and promote on-farm investment.

    Budget 2016 provides an opportunity for the Government to further build upon the measures arising from the agri-taxation review. Taxation priorities for farming in Budget 2016 are:

  • introduction of an income tax incentive for families who farm in partnership for a given time period, at the end of which time the farm is transferred to the next generation;
  • introduction of an Earned Income Tax Credit for self-employed workers to restore equity in the income tax system. The difference in income tax treatment between the self-employed and employees is particularly severe at lower income levels, and must be removed;
  • retention of 90% Agricultural Relief for farm transfers and adjustment of CAT thresholds to reflect asset price changes; and
  • extension of the Stamp Duty Young Trained Farmers exemption and Stock Relief measures past their current expiry dates of 31 December 2015.

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    Budget 2016: full coverage