The cost of business is a major theme for the IFA in its Budget 2027 submission. An agricultural rainy day fund is proposed, allowing farmers to put money aside in good years to be drawn down in years when incomes fall away.

The money could be put into a co-op, a specially assigned bank account, or a State farm volatility fund, where tax would be paid on the money not in the high-income year of earning, but when the money was drawn back down to be used within the farm business.

The IFA highlighted its involvement in the Cost of Business Advisory Forum set up by Minister Peter Burke, and in that regard, wants farm income impact analysis on any major policy decisions such as CAP. It wants support for farm employment, highlighting that 50% of costs on fruit and vegetable farms relate to labour, with high wages a major disadvantage for Ireland as a food exporting nation. The IFA also wants farm incomes benchmarked to the average industrial wage. Outside of the dairy and cereal sectors, the average farm income is a fraction of the average industrial wage.

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In relation to input cost issues that have arisen out of the Middle East conflict, the IFA wants a suspension of the carbon tax on green diesel, the removal of CBAM and a fertiliser support scheme, highlighting the value of the fuel package for farmers and contractors.

The IFA is proposing targeted payments of €300/suckler cow, €35 per ewe, with a €250/ha payment on tillage land, rising to €400/ha for extra land planted.

A new beef sustainability payment of €100 for yearlings should be paid, separate to the dairy beef calf payment which should be increased to €100, it said.

Areas of Natural Constraints’ maximum payments need to be increased to €5,500 for category one lands and €4,000 for category two lands. In 2024, while €242.5m was spent on 2.23m ha, a further 1.24m eligible hectares received no payment due to the thresholds.

ACRES

The IFA is looking for ACRES to be reopened to any farmer looking to join. Outstanding payments must be issued as a matter of priority, with the landscape bonus payment made at the end of 2026.

TAMS needs €100m in 2027, with additional items including dribble bars, rubber mats, ATVs, virtual collars, fencing and quad gates, it believes. The increased TAMS grant of 70% for slurry storage should be made available to all farmers, irrespective of their nitrates status. Forgotten farmers should be financially recognised in 2027, the IFA says.

Other measures include:

  • The permanent removal of all actively farmed land from the Residential Zoned Land Tax.
  • Full exemption of farm buildings from commercial rates must be re-affirmed.
  • Full tax relief on land leased to horticultural growers for two years in a row is proposed.
  • All existing tax measures retained.

    • In relation to just transition, the IFA wants to see increased financing through the Climate and Nature Fund, with an accelerated capital allowance, and a targeted grant scheme for expenditure delivering on measurable climate, biodiversity, and water quality outcomes.

    A watercourse fencing scheme, and a free rainwater and nutrient management plan service are also proposed. Rooftop solar, with battery storage included, should be supported. A national liming scheme paying €20/t is mooted for 2027-28. The IFA wants a €600/ha protein payment in 2027, and a multi-species sward scheme.

    In animal health, TB compensation arbitrary ceilings must be removed, while the 23% VAT rate on vaccines should be scrapped.