The Irish Co-operative Organisation Society (ICOS) has approved the Government’s commitment to address farm income stability in next year’s budget.

The society is responding to Minister for Finance Jack Chambers’ announcement that the Government will work with the Department of Agriculture to combat income volatility in time for Budget 2026.

The ICOS has welcomed this statement as a “step in the right direction” and is confident that any legal or regulatory issues regarding deferred income can be addressed.

“There is no reason why the Government could not have provided a firmer commitment in this year’s budget. Nevertheless, the commitment to advance the proposal is a welcome step forward.”

Proposal

Since 2016, ICOS has proposed a tax measure that would enable a farmer to use periods when market returns are higher to create a modest rainy-day fund to support them during periods when market returns are weaker.

The proposal - known as '5-5-5' - would allow a farmer to voluntarily defer up to 5% of their gross receipts in any one year and these funds can be drawn down at any time within five years.

“We have made several submissions to the Government based on the precedent set by the milk quota regulations and the operation of client accounts across multiple sectors.

“We look forward to engaging further with the Department of Finance and Department of Agriculture, Food and Marine on this important issue for milk suppliers and the dairy co-operative sector.”