The IFA is presenting its pre-budget submission to members of the Oireachtas in Dublin today (Tuesday 29 September).

United goals

The ICMSA, the IFA and Macra na Feirme have all called for an extension of the young trained farmers’ stamp duty exemption to end in 2020. They also show unison on the extension of stock relief and young trained farmer stock relief past their current expiry dates of 31 December 2015 to end in 2020.

The three organisations are prioritising the retention of 90% agricultural relief for farm transfers and that capital acquisitions tax should be increased to reflect the increase in asset values and the reduction in the threshold since 2008.

The IFA and ICMSA call for an introduction of an earned income tax credit for self-employed workers which is similar to the PAYE allowance.

The two groups also deal with the issue of income from forestry. However, the IFA suggests the extension of income averaging to forestry clearfelling income, while the ICMSA suggests that the limit on tax relief available on income from forestry should be addressed.

The ICMSA pre-budget submission also states that ‘‘income tax relief on land leases should be extended to family members’’, while the IFA calls for the introduction of a farm transfer incentive to maximise the productive capacity of the farm enterprise.

Expenditure

Funding of €250m for agri-environmental schemes has been requested by the ICMSA and the IFA. The IFA also calls for €40m TAMS II funding and the allocation of €15m for the rollout of Knowedge Transfer Programmes. The IFA states that ‘‘funding of €65m for the suckler herd must be provided for the BDGP’’. It also requests a targeted payment for the ewe flock, requiring €25m in funding, as well as an increase in funds for the TB eradication programme.

ICOS recommendations

  • The establishment of an income deferral scheme managed by co-operatives.
  • Agri-taxation measures related to the long-term leasing of land and collaborative farming options should be kept under constant review and updated appropriately to improve their overall effectiveness.
  • The swift implementation of incentives for the installation of renewable heat and renewable electricity technologies.
  • Macra’s proposals

  • A Government bond to allow farmers to manage income volatility.
  • Give Teagasc approval for the recruitment of replacement staff and the employment of additional staff to meet the increased demand for education.
  • ICMSA proposals

  • Farm safety: farmers should be allowed to claim back VAT on farm safety equipment and clothing. A scrappage scheme for PTO shafts should be introduced.
  • Fair deal schemes: the budget should provide for the introduction of a cap on the percentage charge that can be applied to the non-residential farming asset in the fair deal means assessment. The lower rate of employer PRSI should be reduced to 4.25% on jobs that pay less than €365/week, with a 20% reduction in the higher rate of employer PRSI on earnings up to €40,000.
  • Water charges: farmers with multiple meters should not be subject to additional costs.
  • Higher education grants: capital value must not be attributed to farm assets other than income derived from their use.
  • IFA recommendations