While the €110m committed to the Department of Agriculture for next year is a step forward, much more is needed now as farmers are already suffering income difficulties due to Brexit uncertainty.

Beef farmers have incurred huge losses since 12 May when the Beef Exceptional Aid Measure (BEAM) was introduced and these have to be covered.

Now that the Irish Government has set out its plans, the European Commission must put its Brexit funding cards on the table.

Some of the IFA’s key budget observations are outlined below.

Beef supports

  • €45m for the BDGP and another €40m for targeted supports. Following discussions, the latter will be allocated as follows:

    • – Continuation of the pilot BEEP suckler cow/calf weighing scheme.

    – Supports for beef farmers rearing dairy calf-to-beef animals, to encourage best practice and improve the efficiency of such enterprises.

    – Encouraging farm practices that ensure the very highest standards of animal welfare on beef farms.

    Environmental measures

    The allocation of €3m for pilot agri-environmental schemes is welcome, but it’s a very modest allocation. Environmental schemes are an area where farmers can make a significant positive contribution to climate action. The increase in the NPWS funding to €1m is a step in the right direction.

    The carbon tax will disproportionately affect farmers and rural dwellers as we don’t have an alternative.

    A significant amount of the funding is likely to be ringfenced for agri-environmental schemes and renewable initiatives that have a farmer and community focus.

    Last Thursday, the IFA’s national council passed a resolution seeking a proper, direct rebate for farmers and contractors given there is no alternative fuel option for them.

    Tax credits

    The €150 increase in the earned income tax credit closes the gap that exists between the self-employed and those in the PAYE sector, but farmers will be disappointed it has not reached the full €1,650 as committed in the Programme for Government.

    Stamp duty

    The increase in the stamp duty rate from 6% to 7.5% will hit farmers who were trying to expand their holdings.

    The IFA has been seeking to have a separate stamp duty rate for farm transfer. Not introducing this was a missed opportunity by the minister to show a better understanding of agriculture.

    It is even more critical that consanguinity relief for relatives is extended, but this will not cover all cases. The extension of restructuring relief is important for those farmers who are trying to consolidate their holdings.

    TAMS

    The increase of €12.1m in TAMS brings the overall allocation to €82m. However, the overall RDP budget of €395m will not be spent unless Minister Creed takes urgent action.

    The IFA has put a significant effort into its budget campaign and will continue to work for farmers in responding to the threats to their incomes.