Prices in the UK continue to edge upwards and are now at the equivalent (vat incl) price of €4.47/kg for R4L steers.

The IFA livestock chair Brendan Golden said demand for beef in the UK market is strong and will improve further as stocks are built up for the lucrative Christmas trade.

“The higher than expected cattle kill to-date this year in the UK and the ‘lower cattle inventory’ all point towards increased demand in our main export market for the coming months,” he said.

Turning to the supply situation here, Golden said most of the grass cattle have now moved through the system. With the kill to-date up 47,000 on the same period last year, numbers are predicted to be tight for the back-end trade.

Exports to Northern Ireland have performed very strongly this year

It’s predicted that there will be 50,000 fewer cattle to kill between now and Christmas, compared to this time last year. Exports to Northern Ireland have performed very strongly this year, with numbers up almost 25,000 head on 2019 to nearly 50,000.

“Looking at the breakdown of overall exports, while numbers are down, the exports of finished cattle are up 16,000 head, which impacts directly on slaughter numbers for the remainder of the year,” Golden said.

Golden said meat factories have no excuses for allowing the current price gap continue between Ireland and the UK

The livestock chair said the demand for beef in the UK market, tight domestic supplies and tighter numbers predicted here in Ireland create a positive environment for factories to maximise returns from the market place for Irish beef.

Golden said meat factories have no excuses for allowing the current price gap continue between Ireland and the UK. He also stated that farmers should dig in on price negotiations, in the knowledge that numbers will be tight and factories need the cattle to fill the lucrative Christmas orders with the supermarkets, which have seen sales of meat surge throughout the COVID-19 restrictions.

IFA farm business chair Rose Mary McDonagh welcomed the renewal of consanguinity (related persons) and consolidation relief under the stamp duty code in the Finance Bill 2020.

“These reliefs are vital to the sustainability and viability of the agricultural sector by reducing the effective rate of stamp duty on transfers of agricultural land from 7.5% to 1% in certain circumstances. They are crucial for greater land mobility, which encourages land transfer and succession.”

The relief is due to continue to operate in 2021 under the same conditions as before

As per the Finance Bill 2020, consanguinity relief is extended until December 31 2023. This relief applies to transfers of agricultural land between certain close relations, such as parent to child or uncle to niece. In 2019, consanguinity relief provided relief from stamp duty worth €28.76m to 1,777 successful claimants.

“The relief is due to continue to operate in 2021 under the same conditions as before. The draft Finance Bill does not propose any age limit on transferors,” she said.

However, it is important to note that the Budget 2021 Tax Expenditure Report states the case for reintroducing an age limit (formerly 67) for transferors should be examined jointly by the Department of Agriculture, Food and the Marine and the Department of Finance (with Revenue input) in 2021. IFA will be engaging with the Department on this issue. However, it is likely that no change will be announced before next year’s Budget.

Consolidation relief is extended until December 31 2022. This brings the relief’s renewal date in line with Farm Restructuring Relief from Capital Gains Tax. In 2019, consolidation relief was collectively worth €630,000 to the 85 farmers concerned.

“Consolidation relief and farm restructuring relief encourage the consolidation of farm holdings to reduce farm fragmentation. This can be done by selling and purchasing or exchanging parcels of land to bring them closer together. This improves the operation, efficiency and viability of farms.”

Young Trained Farmer relief from stamp duty expires on December 31 2021 and IFA will be seeking to have this relief extended in Budget 2022.

The farm business chair concluded that agriculture is a low-margin, highly capital-intensive business, which requires investment in its primary asset – land. The reliefs mentioned are imperative for generational renewal, one of the nine objectives of the CAP.