Budget does little for farm incomes

BUDGET 2020 seems set to provide scant relief for farmers, with the Government doing little to tackle the deepening income crisis in the sector.

The limited package of measures from Finance Minister Paschal Donohoe for farmers and rural Ireland includes:

• The BEEP pilot scheme announced last year will now run in 2020 with an allocation of €40m;

• A €3m ‘Go Green Scheme’ for farmers

• A €110m no-deal Brexit fund for farmers;

• No deal fund - €85 million will be provided for beef farmers; €14 million for fisheries; €6 million for other livestock farmers and mushrooms sector; and €5 million for the food and drinks processing industry.

• “First wave” of Brexit support will be targeted at the beef industry, fisheries, agri-food producers and for farm diversification programmes.

• An increase in the Inheritance Tax threshold for agricultural land from €320,000 to €333,500;

• Extension of Section Capital Gains Tax Relief for Farm Restructuring

The lack of measures to address falling farm incomes, particularly in the beef and tillage sectors, is likely to ramp up anger at the perceived neglect of rural issues by the Government.

Some €110m will be provided through the Department of Agriculture, Food and the Marine Vote in the event of a No Deal Brexit. The provision of immediate supports of €85m for the beef sector will be the first priority.

The Budget also includes a ‘Go Green Scheme’ for farmers.