A tax exemption on payments to farmers for environmental programmes such as ACRES has been proposed by the Irish Natura and Hill Farmers Association (INHFA).

In its pre-budget submission the INHFA has called for such an exemption to be extended to schemes, such as TAMS, which target climate change and water quality improvements.

The farm organisation has also sought that farmers who deliver on recognised environmental measures, such as planting of trees or hedgerows, to get a 100% tax write-off in year one for any capital expenditure incurred.

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The INHFA has also called for changes to Agricultural Relief threshold. Currently agricultural property must comprise at least 80% of the total value of the beneficiary’s assets at the time of the gift/inheritance.

However, this is creating difficulties for smaller holdings where the farmhouse is also being transferred and the INHFA wants the threshold reduced to 60%. Other changes sought by the INHFA include:

  • An annual payment of €3,000 to farmers in Gaeltacht areas who have a competency in the Irish language.
  • An additional overall support payment of €30/ewe. This to be paid at €15/ewe in both the National Sheep Welfare Scheme and under the Sheep Improvement Scheme.
  • A payment of €200/cow under the Suckler Beef Welfare Scheme on the first 10 cows, with a reduced payment on the next 10 cows. The INHFA estimates that this payment will cost €85m.
  • A payment of €300/ha per year on designated land.