Talks on funding for farming measures in Budget 2025 are coming down to the wire.

Sources said that while at the moment it looks like there will be no showstopping announcement for farmers in next week’s budget and it will primarily be extensions of existing measures – including the Organic Farming Scheme which – a lot can change over the weekend.

It is understood that Minister for Agriculture Charlie McConalogue is pushing to include a number of sector specific measures in the budget, with grain growers expecting delivery on the €100/ha tillage payment announced earlier this year.

Fine Gael is pushing for tax incentives to be applied to farm safety grants.

With an ageing population of farmers and a lack of successors on many farms, the risk of farm accidents is on the rise, particularly where older farmers attempt to single-handedly manage farm jobs that require more than one person. The Targeted Agriculture Modernisation Scheme (TAMS) has a higher 60% grant rate available for items that fall under the farm safety heading.

Farm safety

Fine Gael is looking for a further incentive in the form of an Accelerated Capital Allowance (ACA) to be permitted for the remaining 40% of the farm safety item investment.

The option of an ACA to these investments would be of benefit to farmers who face a larger than normal tax bill, although of little benefit to those on lower incomes and lower tax bills.

The spend would also have to be fairly significant – €20,000 or greater – for the farmer to really benefit. For example, a €20,000 spend with a 60% grant rate would equal an €8,000 deductible spend. Taken at the 40% tax rate, this would equal a €3,200 tax saving as opposed to €1,200 at the normal rate of depreciation.

The Government has also made soundings on the residential zoned land tax. Minister for Finance Jack Chambers said last week that active farmers must be excluded from paying the tax.