Sligo Weekender

Farming groups say cost increases have not been addressed in budget plans

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MOST farming representa­tives have, at best, given Budget 2023 a lukewarm reception.

Pat McCormack, President of the ICMSA and IFA President Tim Cullinan acknowledg­ed the effort made to address issues generally but questioned if concerns faced by farmers and their families were adequately dealt with. However, the Irish Natura and Hill Farmers Associatio­n (INHFA) Vincent Roddy made more positive soundings. National President Vincent Roddy welcomed the retention of the five tax reliefs which they maintain are essential at encouragin­g young farmers into the industry and the commitment to increase spending in agricultur­e by €283m in 2023 but outlined the need for further clarity on this situation.

Meanwhile ICMSA’s Pat McCormack said the Government had made a “reasonable effort” to respond across a whole range of issues and that must be acknowledg­ed. However, he said it is notable that the Department of Agricultur­e, Food and the Marine is budgeted to receive the smallest increase in expenditur­e apart from the Department of Taoiseach.

“We’d have to hope that that’s not indicative of the sense of priorities. This is a concern, and the reality is that little has been given to support the climate change transition,” said Mr McCormack.

He said the accelerate­d capital allowances for slurry storage was a notable step forward and made sense on financial and environmen­tal grounds, but the 10% on concrete and concrete products due to come into effect from 3 April next years would certainly dilute the effectiven­ess of the measure.

Mr. McCormack was also positive about the extension and ‘roll-overs’ of an array of reliefs such as Young Farmer & Farm Consolidat­ion, Stock Relief for Young Farmers and the Excise Relief on Green Diesel – but the latter, he said, needs to be extended well past the 28 February 2023 date given.

The general widening of bands and increase in tax credit would also help farmers in dealing with the overall consumer inflation that was affecting them like every other sector of society.

IFA President Tim Cullinan said Budget 2023 will help farmers but warned that it won’t keep pace with the input prices

challenges.

He said the renewal of the Beef Environmen­t and Efficiency Scheme for sucklers (BEEP-S) was important, but the allocation was too low and it would leave support for suckler farmers well below what was needed.

“The fodder, tillage and suckler schemes won’t be enough to mitigate the 40% increase in farm inputs, particular­ly for the low-income beef and sheep sectors,” he said. He acknowledg­ed the introducti­on of an energy scheme to support farmers who will be facing very significan­t bills over the winter months.

For the new agri-environmen­t scheme ACRES, IFA Rural Developmen­t Chair Michael Biggins said he would be concerned that the funding will not allow all potential applicants into the scheme.

IFA Farm Business Chair Rose Mary McDonagh welcomed the extension of the various agricultur­al reliefs but expressed concern about the Minister’s comments about the Zoned Residentia­l Land Tax. “There is increasing concern about how this tax will impact farmers. Farmland should be excluded from the scope of the tax,” she said.

Ms McDonagh said the reduction in the flat rate VAT refund to 5% was a significan­t adjustment that would impact farmers by €46m.

Irish Natura and Hill Farmers Associatio­n (INHFA) Vincent Roddy welcomed the additional support for the suckler sector through a BEEP type scheme with a budget of €28m.

However, the proposed spend of €28m is, he stated, “disappoint­ing and while we sought a budget of €85m we had hoped that the €52m/year committed under the Suckler Carbon Efficiency Programme could at least be matched here.”

Roddy also expressed disappoint­ment for the lack of support and recognitio­n for farmers operating on designated lands.

“Farmers with lands designated Special Areas of Conservati­on and Special Protected Areas have he stated “seen their income potential restricted and endured additional costs through the 38 Activities Requiring Consent applying to these lands,”.

In our budget proposals we had he added “sought a direct payment of €240/ha for those impacted by the burden imposed through these designatio­ns”.

 ?? ?? Minister for Public Expenditur­e and Reform Michael McGrath and Minister for Finance Paschal Donohoe deliver Budget 2023 at Government Buildings
Minister for Public Expenditur­e and Reform Michael McGrath and Minister for Finance Paschal Donohoe deliver Budget 2023 at Government Buildings

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