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Agriculture Schemes

Dáil Éireann Debate, Tuesday - 5 October 2021

Tuesday, 5 October 2021

Questions (762)

Matt Carthy

Question:

762. Deputy Matt Carthy asked the Minister for Agriculture, Food and the Marine the estimated cost of increasing the State aid limit for young farmer relief from €70,000 to €140,000 in bands of €10,000, in tabular form; and if he will make a statement on the matter. [48056/21]

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Written answers

I want to reassure the Deputy that I am committed to supporting young farmers. The European Commission has exclusive competence to decide on the compatibility of State aid with the internal market. Certain categories of aid are deemed compatible, with those for the agricultural sector set out in the Agriculture Block Exemption Regulation (ABER) EU 702/2014. Article 18 of the ABER provides for start-up aid for young farmers up to a threshold of €70,000 per young farmer. In line with the new Common Agricultural Policy (CAP) programming period 2023-2027, the ABER will shortly be subject to review.

The latest data published by Revenue shows that 1,128 "Young Trained Farmers" claimed stamp duty exemption relief in 2019, at a cost of €14.6 million; 1,056 at a cost of €16.8 million in 2018; with 845 at a cost of €7.8 million in 2017. Not all of these will have reached the €70,000 threshold. However, assuming that this is the cost being referred to, if all of the applicants in 2019 availed of an increased threshold (which is currently not permitted under EU State aid regulations), the cost would be as set out in table below:

Increased Threshold to:

Cost €

€80,000

€11,280,000

€90,000

€22,560,000

€100,000

€33,840,000

€110,000

€45,120,000

€120,000

€56,400,000

€130,000

€67,680,000

€140,000

€78,960,000

With the current rate of stamp duty at 7.5%, each €10,000 increase would equate to €133,333 in the value of property transferred or bought.

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