Supporting active farmers and generational renewal in agriculture should be key considerations when assessing tax measures and spending priorities for Budget 2026, the ICMSA has claimed.

In its pre-budget submission, the ICMSA has called for the stamp duty on farm purchases to be reduced from 7.5% to 3% for active farmers.

ICMSA has proposed that the 0% stamp duty relief for young trained farmers be made permanent or extended beyond the 31 December 2025. Similarly, it has called for the retention of the consanguinity and consolidation reliefs.

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The farm body said these moves would provide reassurance regarding future costs for families planning the transfer of the farm.

It called for the retention for Agricultural Relief for farm transfers and for a cut in the rate of Capital Gains Tax and Capital Acquisitions Tax from 33% to 25%.

In addition, the ICMSA has proposed that income tax relief on long-term land leases be extended to include leases to family members.

In terms of renewables, ICMSA claimed farmers should be able to supply excess power to the national grid at an agreed price, even where solar panels have been funded under TAMS.

Meanwhile, the ICMSA has again called for the introduction of a dedicated tax management tool to protect farmers in difficult years due to income volatility.

The farm body proposed the adoption of what it termed a climate and volatility mitigation measure (CVMM).

Farmers would be allowed to deposit income into a farm deposit account in an income tax year in which profits are made. The money is not taxed in the year in which it is deposited, but is in a future year if the farmer opts to utilise the deposit for income.

Funds could remain in the measure account for a maximum of five years or be transferred to a pension, the ICMSA has proposed.