Minister Donohoe has announced that the
earned income tax credit applicable to self-employed taxpayers including farmers will increase by €200. Income tax and USC cuts applicable to all taxpayers will benefit farmers, too.A
€300m low-cost loan fund will open to SMEs, including agri-food businesses, with European support. A further €25m is allocated to the Department of Agriculture to deliver
more low-cost loans to the farming sector. These subsidised loans are intended to help those sectors most exposed to Brexit in their preparations.
Minister Donohoe has announced that the earned income tax credit applicable to self-employed taxpayers including farmers will increase by €200. Income tax and USC cuts applicable to all taxpayers will benefit farmers, too.
A €300m low-cost loan fund will open to SMEs, including agri-food businesses, with European support. A further €25m is allocated to the Department of Agriculture to deliver more low-cost loans to the farming sector. These subsidised loans are intended to help those sectors most exposed to Brexit in their preparations.
This is part of a €64m increase in the Department of Agriculture's budget, which is also expected to go towards an increase in Areas of Natural Constraints payments – although more details on this are not available yet.
Although Minister Donohoe announced that stamp duty on sales of commercial property would increase from 2% to 6% from midnight tonight, Minister for Agriculture Michael Creed later clarified that agricultural land would be taken out of this category. This issue remains to be fully clarified. Existing relief measures including for young farmers remain.
On the renewable energy front, the Government has announced a €7m allocation for the much-awaited Renewable Heat Incentive (RHI) scheme and said that agricultural land used for solar energy generation would now be eligible to agricultural tax relief.
The budget also includes 250 extra places in Rural Social Scheme.
Minister Donohoe has announced additional resources for the Department of Health. Minister of State for Mental Health and Older People Jim Daly later said that an increase in the Fair Deal scheme's budget would in part cover proposed changes to nursing home charges applicable to farm property.
Following the finance minister's speech, the full finance bill and further announcements by various ministers will reveal how many of the measures on farming organisations’ wishlists will come to fruition:
The IFA wants more low-cost loans and ANC fundingIncome volatility is the priority for the ICMSAThe ICSA has asked for a PTO scheme and extra ANC moneyThe INHFA called for increased ANC payments and support for the hill lamb marketMacra wants measures to tackle income volatility and rural broadbandStay tuned to www.farmersjournal.ie and the Irish Farmers Journal news app for budget updates throughout the day.
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Full coverage: Budget 2018
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