‘Agri-Armageddon’ fears for farmers as ‘no-help’ is offered
FARMERS have reacted with disappointment at the lack of measures to address falling farm incomes, particularly in the beef and tillage sectors, in Budget 2020.
Farmer representatives said funding measures announced will fall short of what will be needed as Ireland’s agriculture sector faces severe challenges.
With much of the agriculture-related measures announced in Budget 2020 focused on contingency planning for a no-deal Brexit, immediate changes for farmers were few and far between.
The Government announced an additional €51m for the Department of Agriculture, Food and the Marine due to the challenges facing the rural economy, such as Brexit, globalisation and climate change,
Among the measures announced was €3m for a pilot agri-environmental scheme to aid farmers transitioning to more environmentally friendly farming practices.
It is understood a scheme for suckler cows announced last year will now run in 2020 with an allocation of €40m.
Of considerable importance to farm families, the Inheritance Tax threshold for agricultural land has increased from €320,000 to €333,500.
It has been acknowledged the €150 increase in the earned income tax credit in closing the gap that exists between the self-employed and those in the PAYE sector, but farmers will be disappointed it has not reached the full €1,650 as committed in the programme for Government.
However, concerns have been raised over the increase in the stamp duty rate from 6pc to 7.5pc that would hit farmers who were trying to expand their holdings.
An extension of a capital gains tax relief for farm restructuring was also announced.
The current scheme provides for capital gains tax relief where an individual disposes of and purchases land and/or exchanges land with another farmer in order to consolidate an existing farm.
IFA president Joe Healy said the funding provided for the agri-food sector will fall short of what will be needed as Ireland faces what he described as an “agricultural Armageddon”.
“While the €110m committed to the Department of Agriculture for next year is a step forward, much more will be needed now as farmers are already suffering huge losses due to Brexit uncertainty,” he said.
Mr Healy added the carbon tax will disproportionately affect farmers and rural dwellers as they don’t have an alternative.
“We expect a significant amount of the funding to be ringfenced for agri-environmental schemes, renewable initiatives that have a farmer and community focus,” he said.
Meanwhile, president of the Irish Creamery Milk Suppliers Association (ICMSA) Pat McCormack said that Budget 2020 would come as a profound disappointment to farmers in general and said that there was no sense of urgency of the threat facing the agriculture sector.
He said his association has consistently highlighted the challenge of income volatility on farm families, but yet again this fact had been ignored in the Budget.
“Put bluntly, inaction on this matter is leaving farm families cruelly exposed to volatility and undermining their very future,” he added.