Young farmers need a Brexit-focused budget

Capital taxes and reliefs are top of the agenda for young farmers, with Macra calling for the introduction of a capital allowance system similar to the UK.

Contributor

14 September 2016

Young farmers need a Brexit-focused budget

The uncertainty facing the Irish agricultural sector surrounding Brexit makes Budget 2017 one of the most paramount budgets of the century for the agri-sector.

The future of farming relies on young farmers who need the necessary resources and supports to develop their farm business and fulfil the expectations of Food Wise 2025. Supporting generational renewal, driving competitiveness, access to credit, land mobility, supporting education, advisory and research, tackling income volatility and supports for both rural youth and youth development work are all contained in Macra’s pre-budget submission for 2017.

The future of farming relies on young farmers who need the necessary resources and supports to develop their farm business and fulfil the expectations of Food Wise 2025.

Supporting generational renewal, driving competitiveness, access to credit, land mobility, supporting education, advisory and research, tackling income volatility and supports for both rural youth and youth development work are all contained in Macra’s pre-budget submission for 2017.

The main points include:

The extension of young farmer stamp duty relief on purchases of land up to 40 years of age and the increase in the capital acquisitions tax threshold that farmers can receive as gift or inheritance is also being sought to reflect increasing property values and to encourage the early transfer of farms.

Macra na Feirme is seeking greater flexibility in the implementation of the 100% young farmer stock relief to reflect farm development and growth plans of young farmers.

To promote the establishment of young farmers on agricultural holdings, Macra is calling for an increase to the current capital acquisitions tax thresholds by 25% for category A with an equivalent increase to category B and C.

Tax relief on the leasing of farmland to family members.

The unbalanced male-to-female ratio in Irish agriculture needs to be addressed. At present, a mere 12% of agricultural holdings are owned by females and 27% of farm workers are female. Female farmers have just as much to offer as their male counterparts and, as a result, every effort should be made to increase the number of Irish female farmers. To help support female farmers, Macra is proposing the introduction of aid to cover the cost of replacement labour during maternity leave.

Macra na Feirme national president Seán Finan said: ‘‘Our pre-budget submission focuses on strengthening the future for young farmers and rural youth. Our proposals set out the building blocks that need to be put in place in the budget to create an environment within which young farmers can establish themselves in the industry and have a successful career. The uncertainty facing the Irish agricultural sector surrounding Brexit makes Budget 2017 one of the most paramount budgets of the century for the agri sector. It is pivotal that Budget 2017 puts the framework in place to distil confidence, trust and belief in the sector for young farmers as they are the ones who will have to live with the implications of Brexit in five, 10 and 20 years’ time.’’