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