Dáil Éireann Debate, Thursday - 16 February 2017
258. Deputy Robert Troy asked the Minister for Agriculture, Food and the Marine the supports he plans to introduce to incentivise young farmers into the industry in view of the fact that the average age of a farmer is 57 years and that will increase by one year every four years. [7803/17]
View answerThe National Reserve and Young Farmers Schemes were introduced under the reform of Direct Payments in 2015. These schemes were designed to provide financial support to young farmers and new entrants to farming during the crucial early years immediately following the setting up of a farming enterprise.
The National Reserve provides for an allocation of entitlements at the national average level or a top-up on existing entitlements that are below the national average to two mandatory categories of ‘young farmer’ and ‘new entrant to farming’. The Young Farmers Scheme is a separate scheme that provides for an additional payment to young farmers based on activated entitlements.
The Young Farmer’s Scheme will operate from 2015 to 2019. EU Regulations set down the definition of a ‘young farmer’ for the purposes of eligibility for the National Reserve and the Young Farmers Scheme as follows:
- S/he is participating in the Basic Payment Scheme in the year in which s/he submits an application;
- S/he is aged no more than 40 years of age at any time during the calendar year in which s/he first submits an application under the Basic Payment Scheme;
- S/he is setting up an agricultural holding for the first time or has set up such a holding during the five years preceding the first submission of the Basic Payment Scheme application.
Details in relation to the application process for the Young Farmer’s Scheme 2017 will be widely advertised in the farming media and on the Department’s website. The closing date for applications under the Scheme will be 15th May 2017.
The National Reserve provides for an allocation of entitlements to eligible applicants under the two mandatory categories of ‘young farmer’ and ‘new entrant to farming’. In 2015 the National Reserve fund was based on a 3% cut to the Basic Payment Scheme financial ceiling and provided some €24 million. Some 6,260 applicants were allocated entitlements under the 2015 National Reserve.
There was no National Reserve in 2016 as all available funding had been utilised under the 2015 scheme. In order to provide for a National Reserve in 2017 funding is required to replenish the Reserve. EU Regulations governing the scheme provide that funding for the replenishment of the National Reserve may be obtained by means of surrender of entitlements that remain unused by farmers for two consecutive years and by clawback derived following the sale of entitlements without land. It is envisaged that funding derived from these two sources in 2017 will be very limited. The Regulations also provide the option for Member States to apply a linear cut to the value of all farmers’ entitlements to fund the National Reserve. Consultation between officials from my Department and the Direct Payments Advisory Committee comprising members of the main farming organisations, agricultural education and farm advisory bodies takes place annually as part of the decision making process for the National Reserve. Decisions relating to the availability of a 2017 National Reserve will be made following determination of available funding and the completion of the consultation process involving the Direct Payments Advisory Committee which is currently underway.
The Young Farmer Capital Investment Scheme of TAMS II provides grant aid for a range of investments aimed at facilitating the entry of farmers and generational renewal. The TAMS Scheme specifically targets support at young farmers by offering them a greater rate of aid intensity at 60% compared to the standard grant aid rate of 40%. In addition, support is being provided for grant aid for dairy buildings specifically for qualifying young farmers.
There are a number of tax measures specifically aimed at young farmers, specifically ‘100% Stock Relief on Income Tax for Certain Young Trained Farmers’ and ‘Stamp Duty Exemption on Transfers of Land to Young Trained Farmers’. The Agri-taxation Review was published as part of Budget 2015 and set out the main policy objectives for continuing support through agri-taxation measures including
- Increasing land mobility and the productive use of land
- Assisting succession and the transfer of farms.
Both objectives are especially relevant to young farmers and Budget 2015 included a number of new measures in this regard, as well as measures to enhance and strengthen the existing supports.
In addition I recently announced that the ‘Succession Farm Partnership Scheme’ has been approved and administrative arrangements are being finalised for its commencement this year. The Scheme provides for a €25,000 tax credit over five years to assist with the transfers of farms within a partnership structure and will promote the earlier inter-generational transfer of family farms. It will encourage and support important conversations within farm families about succession planning.
