Dáil Éireann Debate, Wednesday - 24 May 2023
178. Deputy Aindrias Moynihan asked the Minister for Agriculture, Food and the Marine his views on the age profile of Irish farm holders and the difficulties associated with succession and attracting younger people into the sector; and if he will make a statement on the matter. [25232/23]
View answerThe challenge of generational renewal is widely recognised both at national and EU level. I am a strong supporter of assisting the next generation take over the farm when the time is right to do so.
Food Vision 2030, our shared strategy for the agri-food sector also recognises the importance of generational renewal and proposes a number of actions. There are a range of measures in place at present, both in the new CAP and at national level, that support younger and older farmers and facilitate generational renewal.The new Common Agricultural Policy (CAP) cites generational renewal as one of its nine key objectives. Ireland’s CAP Strategic Plan 2023-2027 reaffirms our commitment to generational renewal, reflecting the need for skilled and innovative young farmers to respond to societal demands for quality food and environmental public goods. Measures include:
• The new Complementary Income Support for Young Farmers (CIS-YF) has a significantly increased financial allocation of 3% of the direct payments ceiling. An amount of €35.5 million will be provided in support of young farmers each year from 2023 to 2027, which will result in payments of an average of €175 per hectare, subject to a maximum of 50 hectares, over the five years of the scheme. This is an almost threefold increase on the level of payment to successful applicants under the previous CAP.
• Higher grant rates of 60% under the Targeted Agriculture Modernisation Schemes (TAMS) are available for capital investment for young farmers to invest in and futureproof their farms.
• Under the National Reserve, young farmers will be supported 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 the topping up of low value entitlements held by the young farmer to the national average entitlement value.
• My Department also continues to support and further develop collaborative farming models, with grants available for registered farm partnerships. A new initiative for older farmers, providing financial support towards the costs incurred for independent legal and financial advice about succession planning and navigating a pathway to retirement, is also being considered.
At national level there are a number of taxation measures, both to facilitate succession and to support the establishment of young farmers.
• Succession and the early transfer of family farms is supported by Agricultural Relief from Capital Acquisitions Tax and Stamp Duty exemptions.
• 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 (which in particular provides a route to retirement for older farmers). 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.
On access to finance, one of my priorities is to ensure adequate availability and access to long-term investment finance for young farmers. The recent Future Growth Loan Scheme saw strong demand, with approximately 1,600 loans to the value of €237m sanctioned to farmers. A new €500 million Growth and Sustainability Loan Scheme for long-term investment, with terms of up to 10 years, will launch later this year.
In addition, Teagasc agricultural education activities continue to focus on equipping young farmers with the necessary knowledge to build successful careers.
I want to ensure that the agri-food sector remains strong and sustainable into the future, and will continue to engage with stakeholders to find the best approaches to support all farmers.
