Farm organisations are calling for a number of changes to agri-taxation under the next budget. One of the leading changes being called for is the introduction of a deposit or income rainy day fund type of scheme.

The IFA, ICMSA, ICSA and ICOS are each proposing a type of deposit scheme that would allow farmers to defer a certain percentage of their gross profits in a year of surplus, which could be drawn down later in a year of hardship.

“All farmers, no matter which sector they were in, could put 5% of their gross receipts aside, whether in their co-op or a specially designated bank account,” IFA farm business committee chair Martin Stapleton told the Irish Farmers Journal.

“That money would have to be drawn out within five years and would be available for the farmer to draw down in a difficult year, or in a year of low prices, and pay the tax on it in the year that it was drawn down.”

Listen to an interview with Martin Stapleton in our podcast below:

A number of submissions were made by the IFA, including the need to renew stamp duty relief for young farmers, which is up for review at the end of this year, and removing the definition of agricultural land as “commercial property”, which caused stamp duty on land sales to jump to 6% in the last budget.

An early retirement scheme has been called for by the Irish Natura and Hill Farmers Association (INHFA), which would commence when a farmer reached the age of 55 and pay €400/week.

Threshold

The organisation has also requested that the threshold of the first €2,540 of direct payments and the subsequent 50% of payments that fall under means testing to qualify for Farm Assist payments should be increased.

The ICSA has insisted that farmers, who are categorised as self-employed, should receive the same €1,650 tax credit as PAYE workers. They’ve also demanded that universal social charge (USC) should be phased out, and in the meantime there should be full relief from USC/PRSI for pension contributions made by farmers to private pension schemes.

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