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A review of legislation for the Fair Deal Scheme took place at the House of Oireachtas on Wednesday. There was a negative response from the Health Committee to the IFA president’s proposal that the eligibility criteria for the three-year cap, which includes a farmer’s partner or spouse, family successor or lessee.
Niall Redmond, principal officer at the Department of Health said: “This is aimed at keeping the farm worked. We can’t include third parties in this because it doesn’t meet the policy intent, which is to protect the family farm for the next generation who are going to farm the land.”
Another condition that has not been addressed is clawback on farm assets
Healy’s responsed: “This is inconsistent with other Government policies, that actively incentivised and encouraged farmers to enter into long-term leases with third parties. Another condition that has not been addressed is clawback on farm assets that have been transferred for less than five years.
“The Heads of Bill must be revised to guarantee that the three-year cap also applies to farms that are currently leased, but where a family successor gives a verified commitment that they would continue to farm the asset, for a period of six years,” he added.
Redmond continued to outline the some of the positive steps that have been taken. He said: “In relation to transferred assets, we have allowed the cap to recognise that, for a number of reasons including retirement, the farm may have been transferred to a family member before a nursing home is required. So to address that, we have allowed for the cap to be applied in such situations that currently isn’t the case.”
The committee have also agreed to the provision that the farm can be worked for three out of the five years preceding transferral, as opposed to the current five.
IFA farm family chair Caroline Farrell said the Government must also honour its commitment and retrospectively apply the three-year cap to July 2018, when it was approved by Cabinet.
ICMSA response
Irish Creamery Milk Suppliers Association’s (ICMSA) deputy president Lorcan McCabe said that the Government commitment to change one of the major flaws in the scheme affecting numerous farm families across Ireland has been agreed for some time and it is essential that that it passes into law as soon as possible.
Family farms pass from generation to generation without the assets ever being liquidised
“The legislation is a major relief to many farm families who have relatives or dependants in nursing homes and currently have a potential unlimited line on the family farm.
"Family farms pass from generation to generation without the assets ever being liquidised and it makes no sense that legislation as it currently stands would force the incumbent generation to sell the family farm.”
SHARING OPTIONS: