Grain growers slam dairy farmer tax break concerns

Grain growers have shot back at dairy farmers who have criticised proposals for land leasing tax breaks to benefit the tillage sector.

Irish Grain Grower (IGG) chair Bobby Miller was extremely critical of ICMSA commentary that the tillage land leasing tax break proposals, first revealed by the Irish Farmers Journal, could impact dairy farmers.

It is understood that the Department of Agriculture and now Department of Finance are considering amending the current tax breaks in place for landowners who lease their lands on a long-term basis in favour of rentals to tillage farmers, with dairy farmers to lose out.

ICMSA president Pat McCormack warned that small-scale dairy farms risk being “fatally undermined” by the move, and said his phone has been inundated with calls from those with concerns.

Criticism

Miller warned that “the dairy industry would want to reflect on the benefits they’ve got from government”.

He also highlighted the “battle” that government has fought in Brussels over the nitrates derogation, and the favourable VAT rate on milk production.

While highlighting that “a lot of land has been lost from tillage to dairy this year”, IFA grain chair Kieran McEvoy suggested that farmers “shouldn’t be pitting one sector against another”.

McEvoy said that while the tillage tax break incentives would be welcome, “we’d have to explore every other avenue first”.

“Unless something is done, it’ll be very hard to hit the 400,000ha government tillage target [by 2030],” he added.

‘Head scratcher’

Miller described the tax break proposal as a “head scratcher” for which there has been “mixed and not overwhelming” reaction.

That said, the IGG chair said some tax incentives should be discussed, of which the tillage land leasing tax break could be an option.

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