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It is “vital” that stamp duty reliefs for farmers – namely consanguinity and consolidation relief – are renewed in the upcoming budget, the IFA has said.
The reliefs, which minimise the cost of transferring farms between generations and decreasing farm fragmentation, are due for renewal in the upcoming budget.
In launching the IFA’s pre-budget submission, IFA president Tim Cullinan said: “It is vital that this happens to encourage farm transfer and generational renewal.”
Reliefs
In the submission, the IFA has said consanguinity relief must be rolled over to allow for farm transfer and planning and that extending consolidation relief was critical to incentivise farmers to reduce their number of land parcels or to decrease the distance between them.
The IFA has called on the Government to announce any changes to stamp duty reliefs before budget day. Adequate timing should be provided for in the year it is due for renewal, to support smooth transfer, it said.
As revealed on Tuesday night by the Irish Farmers Journal, the IFA will look for an exception for agri-diesel from the carbon tax.
“The purpose of the carbon tax is to change behaviour, but, farmers do not have an alternative to fossil-fuelled tractors. There should be an exemption from carbon tax on agri diesel until alternatives become available,” Cullinan said.
Schemes
Another critical element of the submission is greater supports for farm schemes. These will include a €300/suckler cow payment, a €30/ewe payment and €300m for Areas of Natural Constraints (ANCs).
“Targeted schemes are increasingly important, many of which have a significant climate action element,” Michael Biggins IFA rural development chair said at the launch.
A total of €100m was set aside in last year's budget as a Brexit reserve. The IFA has urged the government to acknowledge the imminent threat of Brexit and set aside a bigger fund for 2021.
The IFA will be meeting with TDs and senators in the coming weeks to lobby for the changes and will also hold a national event on Wednesday 16 September.
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