Cowen on Fair Deal - 'I have cases in my constituency which are heart wrenching'

Proposed changes to the nursing home scheme could see farms which are leased to third parties excluded from the three-year Fair Deal cap.

There is concern that such a change would act as a disincentive for older farmers to enter into long-term leases due to the potential implications of the Fair Deal scheme.

IFA farm family executive Geraldine O’Sullivan said: “Apart from the negative economic consequences for farmers of not being able to access the three-year cap, this change could also reverse the success that has been achieved in recent years to address the structural deficiencies in the sector which impact on productivity.”

Agri tax review

The 2014 agri taxation review identified farm size, fragmentation, low land mobility and an ageing demographic profile as weaknesses in the sector.

Tax incentives introduced subsequently for long-term leases were designed to address these deficiencies and improve primary production and efficiency.

When addressing the issue of incentives and initiatives to help “the potential of young farmers to realise their ambitions”, new Minister for Agriculture Barry Cowen addressed the Fair Deal issue.

I have had cases in my own constituency which are heart wrenching and I want to address that

He acknowledged that although the Fair Deal is the responsibility of the Department of Health, the Department of Agriculture “will be part of the process, but only because of the representation that this Department has received by TDs and representatives throughout the country”.

“I have had cases in my own constituency which are heart wrenching and I want to address that and I will commit to do so," said Minister Cowen.

“There is a fine line between arriving at a consensus, whereby you recognise the value of that farm that is being leased, in the context of the costs associated with nursing home care, for example. But it may well be that that arrangement is not necessarily the best available in the marketplace for an individual farm.”

While not committing to any specifics, the Minister acknowledged that the scheme was long overdue.

Demand

“I will commit to working with my counterpart in health, to engaging with my own colleagues in order to ensure that the scheme is tailored properly and effective to meet the demand that was placed upon it in the first place.”

Waterford Fianna Fáil TD Mary Butler has been appointed as Junior Minister for Mental Health and Older People in the Department of Health, taking over from Jim Daly in this brief.

IFA farm family and social affairs chair Caroline Farrell said that she is looking forward to working with Mary Butler to ensure that the changes to introduce a three-year cap on family farms is introduced as a matter of urgency.

She said: “The delays introducing the cap are causing unbelievable stress for those families that are waiting for the changes to be introduced as the viability of their farm is being undermined.

"It is now over two years since the proposed changes were approved by the previous Government and farm families want to see what was promised introduced without any further delay.”

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