The importance of the farming and agri-food sector to the economy was clearly highlighted again on budget day. As Minister for Finance Michael Noonan said in his speech, it is not just the sheer economic importance of the sector – which is responsible for over 12% of our exports and 169,000 jobs – it is the fact that this economic activity and these jobs are located across the length and breadth of the country.

As is the case with other members of society, farmers will benefit from the giveaway measures announced. The majority of farmers sit in the squeezed middle that was specifically targeted in the budget. With the average farm income standing at €26,974, the changes to USC and the new Earned Income Tax Credit will be worth €800 in additional net income.

The Earned Income Tax Credit for the self-employed is a watershed for which Minister Noonan’s budget will be remembered. This has long been called for by the IFA to redress an inequality in relation to the PAYE system. The promise to bring this up to €1,650 in the next three years has to be followed through no matter what happens next spring.

For farmers, 2015 will be remembered as the year various new schemes were rolled out, some with more difficulty than others. Despite these issues, ongoing dialogue between the IFA and the other farming organisations ensured Minister Coveney delivered the increased budget that was required.

In the 2016 estimates, we have seen the Department follow through with the budget allocation to ensure farmers can see money flowing to them. Expenditure by the Department of Agriculture is set to increase by 9% in 2016 from €1.242bn to €1.351bn. The increase is largely due to a significant jump in EU funding targeted under the Rural Development Programme.

On GLAS, €142m was allocated, which is enough to ensure that up to 40,000 farmers can start in the scheme from 1 January 2016.

It was interesting to see just €600,000 allocated to REPS for the final wind-down of that well-remembered scheme.

The Areas of National Constraint scheme remains at €195m.

€52m has been allocated for the Beef Data and Genomics Programme, ensuring payment for the 29,000 farmers who have signed up.

TAMS, which continues to evolve, was allocated €35m.

The reintroduction of sheep fencing and attempts to bring in an arable TAMS for storage, drying and ventilation are all due to the Department of Agriculture listening to what changes are required.

Agribusiness got a boost with a complete transformation of the motor tax for HGVs a major cost to our co-ops and food companies – another case of working to address anomalies.

There is more detail needed, especially on whether farm businesses will qualify for the reduced capital gains tax of 20% if they sell their business or part of their business.

The package of tax measures delivered in last year’s budget around promoting long-term leasing is making an impact. Analysis of the Department database shows nearly 40% of farmers are now leasing land. Twenty-seven per cent of farmers who took on additional land in 2015 have started a long-term lease.

The relationship developed with the Department of Finance clearly allowed the Department of Agriculture to continue the strategy of using the tax system to incentivise structural change. The Family Transfer Partnership, with a generous €25,000 in tax credits over five years, will start the conversation in families that have been putting off making the commitment.

The way a simple solution was found to remove the obstacles of clear-felling forestry has also to be commended. Collaboration should not and I doubt will not bring complacency. The Finance Bill is the next step to ensure this.

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Budget 2016