Dáil Éireann debate -
Thursday, 11 May 2000

Vol. 519 No. 1

Written Answers. - Land Transfers.

John Bruton

Question:

113 Mr. J. Bruton asked the Minister for Agriculture, Food and Rural Development the plans, if any, he has to make improvements in the agricultural land market, so as to make it easier for young full-time farmers to obtain land either for outright purchase or long-term lease, thereby making their operation viable. [13180/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

A range of measures are in place to encourage the transfer of land to young trained farmers. Since the introduction of the early retirement scheme in 1994 and up to 31 December 1999, 9,973 farmers have availed of the scheme and almost 300,000 hectares of land have been released. Proposals for a new scheme have been submitted to the European Commission as part of my Department's draft rural development plan for the period 2000-06 and it is expected that a high level of take-up will continue.

The national scheme of installation aid introduced in December 1998 provides young trained farmers with a grant of £5,600 to assist them with the cost of the farm transfer. Under the national development plan 2000-06, a new scheme is provided for and a higher rate of grant of £7,500 will apply under the proposed scheme.

In addition to the schemes of early retirement and installation aid, a range of tax incentives are in place to assist young farmers and to encourage the transfer of land to them. These include: 100% stock relief for young trained farmers; reduced stamp duty; 90% agricultural relief on capital acquisitions tax; income tax exemptions for land leased by farmers over 55 to non-connected persons; retirement relief on capital gains tax for farmers over 55; 30% reduction in the market value of agricultural property when computing probate tax.

Following the Programme for Prosperity and Fairness stamp duty relief for young trained farmers has been extended from two thirds to full relief.

The Agri Food 2010 report contains a number of recommendations aimed at encouraging land mobility and early transfer. However, it would be inappropriate of me to take a definitive position on any individual proposal in the report as I will be undertaking a round of consultations with the representative organisations on these findings and recommendations in the period ahead. This consultation process should not take longer than three months from the date on which I received the report. At that stage, it is my intention to formulate a comprehensive response to the report.

John Bruton

Question:

114 Mr. J. Bruton asked the Minister for Agriculture, Food and Rural Development his views on the suggestion by the Agri Food 2010 group that there is a contradiction in funding schemes designed to promote early transfer of land to young trained farmers while continuing to subsidise farmers over 65 through other agricultural schemes; his views on whether headage paid to over 65s should be transmuted into a more attractive retirement scheme; his further views on whether a condition for receiving the contributory old age pension should be that farmers transfer or lease their farms; and if he will make a statement on the matter. [13181/00]

Minister for Agriculture, Food and Rural Development (Mr. Walsh)

The 2010 committee report was presented to me on 24 March. It contains a considerable number of recommendations and findings. I am undertaking a round of consultations with the representative organisations on these findings and recommendations in the period ahead. It would be inappropriate for me to take a definitive position on any individual proposal in the report until these consultations are completed, which should not take longer than three months from the date on which I received the report. At that stage, it is my intention to formulate a comprehensive response to the report.