The Irish Natura and Hill Farmers Association (INHFA) has called on the government to implement full tax exemptions for all farm payments under environmental schemes in the Budget.

The association stated that funding under ACRES and the new Eco-scheme should “be disregarded for tax purposes.”

INHFA national president Vincent Roddy said this measure would renew confidence and positivity around the ACRES scheme amongst farmers. He has “seen significant problems around the ACRES Programme that has angered and frustrated farmers in equal measure.”

“Such an exemption is in recognition of the climate and biodiversity emergency declared by Dail Eireann in May 2019.”

Tax-free allowance

Roddy added that this “emergency” should be treated in a similar manner to the housing crisis.

A tax-free allowance on rental income of up to €14,000/year is currently available in that sector.

“Mirror the tax-free exemptions that are available for forestry premium while also recognising the additional costs incurred by farmers through the ACRES Programme that also includes reduced output and income,” he added.

“The enormous benefit such an exemption would have in improving farmer goodwill around ACRES and wider environmental ambition.”