The Irish Farmers Association (IFA) has proposed that the areas of natural constraints (ANC) payment should be allocated increased funding with existing payment rates adjusted for inflation, in its pre-budget campaign ahead of Budget 2027 in October.

They are calling for maximum payments of €5,500 for Category one lands and €4,000 for Category two lands at existing thresholds.

Currently, the ANC is worth €250m annually to nearly 100,000 farmers. However, in 2024, 1.24m ANC hectares went unpaid because of prevailing thresholds set.

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“Within the schemes, we have identified ANC as one that is a critical part of farm income. We also reinforced to the politicians who attended, that linear cuts to any scheme will not be tolerated by farmers,” IFA president Francie Gorman said.

“We know over 500 new applications for the national sheep welfare scheme have been received this year and no doubt there will be new applications for the national beef welfare scheme later in the autumn too.

"These have to be budgeted for and not paid for by existing applicants, like what happened last year.

Straw incorporation scheme

“Additional funding to ensure full payment to all applicants for the straw incorporation scheme (SIM) must be found, for a tillage sector that needs additional supports, not cuts.”

The IFA is also urging the Government to co-finance the EU fertiliser fund and to consider measures that mitigate the impact of increased input costs as a result of conflict in the Middle East.

The need for an increased TAMS budget and key reliefs around generational renewal were also highlighted.

Gorman stated that other proposals they have recommended include an income volatility scheme for all famers, VAT for farmers selling animals in marts to be addressed and a permanent solution for farmers on the residential zoned land tax (RZLT) once and for all, with active farmland permanently removed from its scope.