Dáil Éireann Debate, Wednesday - 6 November 2024
112. Deputy Cathal Crowe asked the Minister for Agriculture, Food and the Marine the estimated full-year cost of the income volatility measure to support the farming sector outlined in budget 2025; and if he will make a statement on the matter. [45378/24]
View answerMarket volatility arises from a variety of factors, including geo-political and weather events. In the agriculture sector, we have just been through a period of higher input costs and falling output prices, exacerbated by challenging weather conditions. However, the outlook is now more positive, as input costs have fallen by 7% in the year to the end of August, with output prices up by 18% in the same period.
The Programme for Government contains a commitment to “consider further taxation measures to manage evolving issues such as market volatility”. This has featured in discussions and consultations over the past number of years. As announced in Budget 2025, I agreed with the Minister for Finance that both our Departments would work together to progress proposals on income volatility to support the agricultural sector in advance of next year’s budget. This requires detailed consideration of complex policy issues on the operation of a scheme, including financial regulation, governance and legal structures.
An in-depth evaluation of income stabilisation previously took place ahead of Budget 2019. That showed that the projected annualised operation cost of the scheme for the first three years amounted to €15.3 million.
