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Agriculture Schemes

Dáil Éireann Debate, Tuesday - 5 October 2021

Tuesday, 5 October 2021

Questions (454, 455, 456)

Matt Carthy

Question:

454. Deputy Matt Carthy asked the Minister for Social Protection the estimated cost of increasing the depreciation rate for farm equipment and machinery to a standard 10% with regard to farm assist; and if she will make a statement on the matter. [48097/21]

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Matt Carthy

Question:

455. Deputy Matt Carthy asked the Minister for Social Protection the estimated cost of including forestry premium payments within income from farm schemes and direct payments disregards; and if she will make a statement on the matter. [48098/21]

View answer

Matt Carthy

Question:

456. Deputy Matt Carthy asked the Minister for Social Protection the estimated cost of allowing a three-year income test assessment for farm assist applicants; and if she will make a statement on the matter. [48099/21]

View answer

Written answers

I propose to take Questions Nos. 454 to 456, inclusive, together.

Farm Assist is a social assistance support payment for farmers on low incomes who satisfy the scheme’s statutory conditions, including a means test. Recipients retain the advantages of the Jobseeker's Allowance scheme, such as the retention of secondary benefits and access to activation programmes. The 2021 Further Revised Estimate provides for expenditure of €61.7 million on Farm Assist.

The means test for Farm Assist takes account of all income sources and farm outgoings. There are annual disregards for dependent children; €254 for each of the first two children and €381 for the third and other children. Remaining farm income and income from off-farm self-employment is then assessed at 70%. In line with other means tested social welfare schemes, the first €20,000 of capital is not assessed.

At present, specified income disregards apply to income received under the following agri-environmental grant schemes: the Rural Environmental Protection Scheme (REPS), the Agri-Environmental Options Scheme (AEOS), the National Parks and Wildlife Service Farm Plan Scheme (NPWS) and the Green Low-Carbon Agri-Environment Scheme (GLAS). A disregard of €2,540 applies to the total payments through these schemes with 50% of the balance assessed as means.

The Forestry Premium Payments Scheme applies to farmers and others who have land under afforestation. Premiums paid under this scheme are assessed in line with the normal farm income, at 70%. On the basis that 10% of recipients are in receipt of the forestry premium payments, the additional cost of including them under the existing disregard applied to the agri-environmental grant schemes would be over €1 million in a full year. This does not take account of any future inflows to the scheme if Forestry Premium Payments were included.

In the case of capital assets, such as farm machinery and equipment, the capital cost is not allowed as an expense. An allowance is made for the depreciation of these assets instead. Where farm machinery or equipment is purchased outright, an allowance for depreciation relative to their usage is made. There would be a cost to increase the depreciation to a standard rate of 10% which could only be considered in a budgetary context and would require a detailed analysis to provide an accurate costing. Such a costing is not readily available.

The annual Farm Assist Review is a necessary part of the normal review process. Income and expenditure figures for the preceding year are generally used as an indicator of the expected position in the following year. However, account is taken of any exceptional circumstances to ensure that the assessment reflects the current situation accurately.

The Government made a commitment in the Programme for Government and in the Our Rural Future Rural Development Policy 2021-2025, to review the means assessment disregards for the Farm Assist scheme. This technical review is underway and the report will be submitted to me shortly for consideration.

I hope that this clarifies the position at this time.

Question No. 455 answered with Question No. 454.
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