Dáil Éireann Debate, Thursday - 26 October 2023
237. Deputy Niamh Smyth asked the Minister for Agriculture, Food and the Marine his plans to address the issues outlined in correspondence (details supplied); and if he will make a statement on the matter. [47125/23]
View answerI am a strong supporter of assisting the next generation take over the farm when the time is right to do so. While farming can be challenging and comes with significant demands, it is also one of the most rewarding ways of life. It's essential that the sector has young and enthusiastic people coming through to further develop it.
Food Vision 2030, the stakeholder-led strategy for the agri-food sector, highlights the challenge of generational renewal and proposes a number of actions, including maintaining the current strong level of current support, the promotion of succession planning & land mobility, and increased education and promotion of the diversity of careers in the agri-food sector.
The challenge of generational renewal is widely recognised both at national and EU level, with the new Common Agricultural Policy (CAP) citing it as one of its nine key objectives. Ireland’s CAP Strategic Plan 2023-2027 reaffirms our commitment to generational renewal and measures include:
• A Complementary Income Support for Young Farmers’ Scheme, dedicating some 3% of the direct payments ceiling (€1.186 billion) to help young farmers establish their farming businesses. This allocation is approximately €35m per annum and will pay over €175 per hectare, subject to a maximum of 50 hectares over five years.
• A National Reserve 2023-2027 will provide support to two priority categories of Young Farmer and New Farmer. Successful applicants will receive an allocation of payment entitlements on land for which they hold no payment entitlements, and/or a top-up to the value of existing entitlements below the national average entitlement value to bring them up to the national average value, subject to an overall allocation of 50 entitlements per successful applicant.
• A higher grant rate of 60% for qualified young farmers under the TAMS capital investment measure will also continue to be available.
• A Collaborative Farming Grant Scheme provides financial support to encourage farmers to form partnerships with young, trained farmers.
• A Succession Planning Advice Grant to encourage and support farmers aged 60 years and over to seek succession planning advice.
Nationally, there are strong taxation measures to facilitate succession and assist land mobility. For succession, Agricultural Relief is the key measure, which along with 100% Stamp Duty Relief and Consanguinity Stamp Duty Relief, provided support of some €274 million in 2022. In addition, 100% Stock Relief for Young Trained Farmers was worth €1.7 million. The Succession Farm Partnership Scheme provides for a €25,000 tax credit over five years to further assist the transfer of land within a partnership structure, to encourage earlier transfer of family farms, and was worth €1 million.
For land mobility, long-term leasing income tax relief supports access to land for young farmers and provides a route to retirement for older farmers. Latest figures show 12,490 beneficiaries worth €34.3 million.
I was delighted to secure the extension of Consanguinity Relief for a further five years in Budget 2024. In addition, it was announced in the Budget that the aggregate lifetime amount of relief that a young farmer can benefit from three other taxation measures (Young-Trained Farmers Stamp Duty Relief, Young-Trained Farmers Stock Relief and the Succession Farm Partnerships Tax Credit) is being increased from €70,000 to €100,000.
On access to finance, the €500 million Growth and Sustainability Loan Scheme (GSLS), will provide long term investment by SMEs, including farmers, fishers and food businesses, and will assist young farmers in particular. One of the unique characteristics of the Scheme is that loans up to €500,000 are unsecured, making it a viable source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security.
In addition, Teagasc’s agricultural education activities equips our young farmers with the knowledge to build successful careers.
Supporting young farmers remains a key priority for me and the Government and I will continue to actively engage with all stakeholders on this issue.
