Midlands North-west MEP Maria Walsh has called for a rise in the tax-free threshold applicable to passing on agricultural assets, such as farmland, between extended family members.

Walsh backed the move as a means of boosting farm succession, pointing out that farm transfer reliefs have caps of just €40,000 when the transfer concerns extended family members.

She called on Government to use next week’s budget as a means of showing its commitment to farm families, particularly on the issue of generational renewal using “tangible actions over mere words”.

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“Budget 2026 presents an opportunity to end the unfairness that persists within our inheritance tax system,” the Fine Gael MEP said.

“[This is] An unfairness which has impeded succession planning and access to land for the next generation of farmers.

“For far too long, not having children has come with a hefty financial cost for farmers. While parents can pass on assets of €400,000 tax-free to their children, this reduces to €40,000 for members of one’s extended family.

Penalised

“For farmers, this means they are doubly penalised in terms of passing on their home and business to the next generation.”

The MEP stated that facilitating more transfers between extended family members through an extension of reliefs would assist both retiring farmers and young farmers seeking a foothold on the land.

“This is a two-fold issue; providing our older farmers with the peace of mind that they have provided for the next generation and removing barriers to access to land for young farmers,” she continued.

The low number of young people entering farming – just 7% of Irish farmers are below the age of 35 – has triggered “major issues”, Walsh said.

“Many farm families do not have natural successors for their land - this reality should not come with a financial cost.

“As the nature of our families grow and change, our laws too must evolve. There is also the added layer of complexity that for many farmers, the transfer of land is not merely a financial transaction.

“It is a way of preserving culture, traditions and generational bonds.”