Budget and Brexit high on the agenda at Mallow IFA meeting

IFA URGE GOVERNMENT TO MAINTAIN THE COMPETITIVENESS OF IRISH EXPORTERS

THE need for strong support for farmers at both national and EU level and the impact Brexit will have on Irish agriculture were among the topics discussed at an IFA meeting in Mallow on Monday evening.

IFA farm business chairman Martin Stapleton was the keynote speaker at the in the Mallow GAA Complex, which was also attended by Agriculture Minister Michael Creed and Ireland South MEP’s Sean Kelly, Deirdre Clune and Liadh Ní Riada.

Addressing the large crowd Mr Stapleton said Irish farmers needed “strong measures” to support farm income and to provide greater policy certainty.

“The upcoming budget provides an opportunity for government to increase funding for farm schemes including GLAS, ANC’s, TAMS, Beef Data and Genomics and the new sheep scheme. This will directly impact on farm income and output,” he said.

Addressing the issue of taxation, Mr Stapleton said there was a “clear need” to strengthen and individualise income volatility measures for farm businesses.

“IFA has proposed the adjustment of income averaging to allow a farmer on averaging, in a year when income falls significantly, to pay the tax due for a single year only,” said Mr Stapleton.

He said the deferred tax would then be carried forward and paid over a three-year period saying this flexibility would “assist greatly” with cash flow pressures.

“In addition, to maximise the number of farmers using income averaging, the current restrictions on eligibility where the farmer’s spouse is in self-employment must be removed.”

The IFA has also targeted a number of other key issues for inclusion within October’s budget including the equalisation of earned income tac credit with PAYE credit, the continuation of Farm Restructuring Relief, the extension of land leasing tax exemption to siblings (in restricted circumstances) and incentives for investment in renewable and energy efficient infrastructure initiatives.

Mr Stapleton said the government must also deliver on its commitment to remove what he said was the “discrimination” against farms and other small businesses within in the Fair Deal scheme.

Pictured at the IFA meeting in Mallow last Monday evening were: Standing - John Magner, chair North Cork IFA Farm Business Committee; Martin Stapleton chair IFA National Committee, Councillor Kay Dawson, Billy Cotter, chair North Cork IFA and Sean O’ Leary National Dairy chair. Seated: MEP’s Sean Kelly and Liadh Ní Riada, Agriculture Minister Michael Creed and Deirdre Clune MEP.

He highlighted the risks to Irish agriculture from Brexit, saying the government must prioritise the cost competitiveness of Irish exporters.

“Measures must include a temporary reduction in the lower rate of employer’s PRSI and no increase in excise duties on agricultural diesel or road fuels,” said Mr Stapleton.

“In the medium term, both out government and EU representatives must ensure that the minimisation of barriers to trade between the UK and the EU are a priority.

He concluded by pointing out the differences in borrowing costs for Irish farmers compared to their EU counterparts, saying the average 2% gap puts Irish farmers at a “significant competitive disadvantage” to their continental counterparts.