The IFA launched its pre-budget submission, titled Supporting Farm Income – Underpinning Competitiveness, on Wednesday in Dublin. Among a raft of measures, the IFA has called for an extra €25m in funding to be provided for the Areas of Natural Constraint Scheme. It has also called for an additional €25m to be allocated to the BDGP budget, with a €5m top up for the Sheep Welfare Scheme – which will be used to support the delivery of additional measures within the schemes.

“Delivery on these proposals will contribute to tackling low farm incomes, underpinning the contribution of the farming and agri-food sector to the economy, including the Foodwise 2025 targets, and supporting economic activity in rural communities,” according to Joe Healy.

Measures

The submission also called for the provision of government-supported low-cost loans for farming enterprises, to fund both ongoing working capital requirements and on-farm investment. The IFA president said farming remains a low-income sector, as shown by the Teagasc farm income figures for 2016.

Average farm income in 2016 was just over €24,000, with incomes on livestock and sheep farms significantly below this. The IFA has made a renewed call for farmers to receive support payments of €200/suckler cows to help battle these low incomes.

The IFA has made a renewed call for farmers to receive support payments of €200/suckler cow

An increase in funding for the Fair Deal Scheme has also been called for to remove the discrimination against farming and other small business assets in the means assessment, according to the IFA. This measure will help to support family farms and their viability, the IFA has said.

Taxation

In addition to increased support for farmers, the IFA is also calling for tax measures to be introduced to support an deliver on Government policy in renewable energy, through the development of renewable energy projects using farmland. It wants farmland under solar panel infrastructure to be classified as a qualifying asset for the purpose of assessment for relief from Capital Acquisitions Tax upon transfer.

It also wants Earned Income Tax Credit to be increased to the same level as the PAYE credit and greater measures to deal with income volatility. Improving herd health has been targeted through the removal of VAT on all animal vaccines.

IFA Farm Business chair Martin Stapleton said: “Budget 2018 provides an opportunity to address ongoing challenges in farming through the taxation system. These include income volatility, the discrimination between self-employed and employees in the income tax system and the need for ongoing farm investment.”

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