Dáil Éireann Debate, Tuesday - 26 July 2022
2172. Deputy Ruairí Ó Murchú asked the Minister for Agriculture, Food and the Marine his plans in relation to solar farms to facilitate farmers in relation to issues that may occur in relation to succession and farm payments et cetera; and if he will make a statement on the matter. [41885/22]
View answerMy Department currently provides grant aid through the Targeted Agricultural Modernisation Scheme (TAMS II) to assist farmers in maximising their contribution to the production of renewable energy through the installation of Solar PV technology along with battery storage on Irish farms.
It is also proposed that support for renewable energy investments will continue under the new Capital Investment Scheme as part of Ireland's new CAP Strategic Plan (CSP) which was submitted to the EU Commission for approval in December 2021.
In addition, the Department of Environment, Climate and Communications launched a Microgeneration Support Scheme (MSS) in December 2021. This is a suite of new measures which that Department has introduced for renewable energy production this year.
In relation to farm payments, solar panels will be considered as ineligible features within an eligible land parcel and the land covered by the solar panels is not regarded as eligible for Basic payment . In general, parcels or parts of a parcel, with solar panels may be considered eligible but, reductions must be made to the eligible area to take account of the impact of the panels on forage availability.
In all cases, parcels containing solar panels will only be considered eligible, where an agricultural activity takes place (e.g. grazing with sheep) and the solar panels must not hamper the undertaking of that agricultural activity.
It is also worth noting that all agricultural land used to claim BPS must be owned/leased/rented, used and managed by the applicant.
While taxation is primarily the responsibility of the Minister for Finance our Departments work closely to ensure it is consistent with Government priorities for the agri-food sector. Agricultural property, such as farmland, benefits from tax relief under Capital Acquisitions Tax (CAT).
The purpose of this relief is to facilitate succession and the intergenerational transfer of viable farm enterprises. Finance Act 2017 amended CAT agricultural relief and Capital Gains Tax (CGT) retirement relief to allow the leasing of agricultural land for solar infrastructure to be classified as qualifying agricultural activity, subject to the panels covering no more than 50% of the holding.
My Department continues to work with the Department of Finance and stakeholders to ensure that tax strategy aligns with Government strategy and the needs of the agri-food sector and wider society.
