Increasing land mobility, tools to cope with income volatility and ensuring investments in co-operatives are tax-deductible were the three priorities identified by dairy industry representatives when they gathered in the Irish Farm Centre this week to be briefed on the Irish Farmers’ Association’s submission to the agri-taxation review.

IFA president Eddie Downey said that land mobility is a key issue hindering growth in Irish agriculture and must be addressed.

“It is an emotive topic but we have put forward proposals that address it in a sensitive way,” he said.

The IFA has proposed a “phased transfer partnership” that is designed to smooth the transfer of assets between generations. The organisation is also proposing that the current minimum age limit of 40 be removed from the long-term leasing incentive. Income from land leases of five years or more is tax-free.

IFA economist Rowena Dwyer explained the association’s proposal for a “tax deposit account” where income could be saved until required to cope with volatility.

“It would be taxable in the year that it would be drawn down, rather than in the year that it is earned,” she explained.

Over 40 submissions have been made to the agri-taxation review being run by an inter-agency group involving the Department of Finance, the Revenue Commissioners, the Department of Agriculture and Indecon consultants. IFA and other farm bodies are due to meet the group next week.

The IFA submission also makes the case for the retention and in some cases extension of the existing measures such as stock relief, capital acquisition tax relief, income averaging and other measures.

Meanwhile, speaking at the same event, IFA secretary general Pat Smith cautioned farmers against rushing into the formation of limited companies.

“It was very popular in other sectors in the past and I know that many are regretting it now,” he said.