Pauline Tully
Question:84. Deputy Pauline Tully asked the Minister for Agriculture, Food and the Marine his plans to review the farm succession scheme; and if he will make a statement on the matter. [47007/23]
View answerThursday, 26 October 2023
Questions (84)
Written answers
The Deputy has clarified that she is primarily interested in Consanguinity Relief from Stamp Duty. My colleague the Minister for Finance carried out a review of the measure in advance of Budget 2024, which was published on budget day. Arising from that review, the Government decided to extend Consanguinity Relief from Stamp Duty for a further five years.
This is a hugely important relief to the agriculture sector that facilitates succession and the earlier inter-generational transfer of family farms, providing, under certain conditions, for a 1% rate of stamp duty to be applicable where a transfer of agricultural land is made to certain close relations. This relief promotes and encourages the lifetime transfer of farms, thereby enhancing generational renewal in the sector.
In addition, it was announced in the Budget that the aggregate lifetime amount of relief that a young farmer can benefit from three other taxation measures (Young-Trained Farmers Stamp Duty Relief, Young-Trained Farmers Stock Relief and the Succession Farm Partnerships Tax Credit) is being increased from €70,000 to €100,000.
As well as the taxation measures already mentioned, there are a number of others which facilitate succession and assist land mobility. For succession, Agricultural Relief is the key measure, which along with 100% Stamp Duty Relief and Consanguinity Stamp Duty Relief, provided support of some €274 million in 2022. In addition, 100% Stock Relief for Young Trained Farmers was worth €1.7 million. 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, and was worth €1 million. For land mobility, long-term leasing income tax relief supports access to land for young farmers and provides a route to retirement for older farmers. Latest figures from Revenue show it was worth €34.3 million to 12,490 beneficiaries.
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:
• Complementary Income Support for Young Farmers (CIS-YF) dedicating some 3% of the direct payments ceiling (€1.186bn). An amount of €35million 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 to help young farmers establish their businesses.
• A National Reserve 2023-2027 will provide support to two priority categories of Young Farmer and New Farmer.
• Higher grant rates of 60% under the Targeted Agriculture Modernisation Schemes (TAMS).
• Collaborative Farming Grant to encourage farmers to form partnerships with young-trained farmers.
• A Succession Planning Advice Grant to encourage and support farmers aged 60 years and over to seek succession planning advice.
The recently launched €500 million Growth and Sustainability Loan Scheme, will facilitate strategic investment by SMEs, including farmers, fishers and food businesses, to ensure their continued viability and sustainability into the future. One of the unique characteristic of the Scheme is that loans up to €500,000 are unsecured, making it a viable source of finance for young and new entrant farmers, especially the cohort who do not have high levels of security.
In addition, all of Teagasc’s education activities equips our young farmers with the necessary knowledge to build successful careers.
Supporting young farmers and new entrants in agriculture will ensure a strong and sustainable sector into the future and will remain a priority for me and the Government.