Dáil Éireann Debate, Thursday - 20 January 2022
329. Deputy Alan Dillon asked the Minister for Agriculture, Food and the Marine the State backed incentives and schemes that are available for young farmers; and the additional measures planned for young farmers in the next CAP. [2840/22]
View answerState backed incentives for young farmers include strong taxation measures to assist land mobility and facilitate succession and are worth some €200 million per annum. Succession and the early transfer of family farms is supported by Agricultural Relief from Capital Acquisitions Tax and Stamp Duty exemptions. In addition, 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. Investment and access to land are supported by 100% Stamp Duty Relief for Young Trained Farmers, 100% Stock Relief for Young Trained Farmers and Relief for Long-Term Leasing
On access to finance, the Future Growth Loan Scheme was developed with assisting young farmers among its objectives and has been in great demand, with 1,294 loans to the value of €155.5 million sanctioned to farmers. In addition, Teagasc's education activities continue to focus on equipping young farmers with the necessary knowledge to build successful careers.
The Land Mobility Service is a Macra na Feirme initiative supported by numerous stakeholders including my Department. The service provides options for landowners and opportunities for young farmers through advice on and facilitation of collaborative farming arrangements. It has been supported by my Department since 2014 and has seen well over 500 arrangements covering approximately 19,000 hectares being facilitated. My Department is engaged with the Land Mobility Service on future support, and I announced a 100% increase in the funding for 2022 to €100,000.
The CAP Strategic Plan submitted to the EU Commission at the end of December 2021 contains proposed support measures for young farmers. Under Pillar I of the next CAP Ireland has proposed support for young farmers as a priority category under the National Reserve to provide for an allocation of payment entitlements at the national average value on eligible land for which the young farmer holds no entitlements, or topping up low value entitlements held by the young farmer to the national average. Ireland has also proposed utilising the option to implement the Complementary Income Support for Young Farmers. This scheme would see an additional payment per hectare made to eligible young farmers, subject to a maximum of 50 hectares, for a period of five years.
Under Pillar II of the next CAP, it is proposed that a grant rate for young farmers for Capital Investments will be 60% with an indicative investment ceiling limit to be applied of €90,000 per holding and €160,000 per holding for partnership applications. This level of grant rate is proposed in order to support young farmers and specifically to enable them to take on any necessary on farm infrastructural improvement work. This 60% grant rate compares favourably to the general 40% rate and is designed to be a significant support for qualified young farmers.
The proposed supports for young farmers under the next CAP will be subject to Ireland receiving EU Commission approval for the CAP Strategic Plan.
