IFA, ICMSA, Macra and ICSA all advocate that farmers should be able to shelter income in a good year in order to have access to this money in a year of poor returns in a more tax-efficient manner.

This is coupled with calls for more flexibility in the income averaging tool.

CGT restructuring

In addition, the farm organisations want to see capital gains tax (CGT) restructuring relief extended beyond the end of this year.

The ICMSA argues that the first €5,000 of an individual’s chargeable gain be exempt and that indexation should be reintroduced in order to act as a catalyst to encourage land mobility.

Farm organisations want an increase in the capital acquisitions tax (CAT) threshold and continuation of the 90% agricultural relief.

The ICMSA said that the Category A threshold should be €500,000 for the 2017 budget, while the IFA said it needs to be “significant”.

Overall capital taxation

In respect of the overall capital taxation rates, IFA believes that “the 33% rates for CGT and CAT are too high, providing a disincentive to investment and enterprise, and should be reviewed”.

Further to that, equalisation of the earned income tax credit is called for and the ICSA “strongly advocates full elimination of the USC over a number of budgets”.

Farm organisations insist that financial instruments under the European Agricultural Fund for Rural Development are introduced to support access to low-cost finance for farmers.

Each of the organisations made submissions relating to the Rural Development Programme schemes. The IFA calls for full drawdown of Ireland’s annual €580m and an increase in the budget for measures such as GLAS, BDGP, TAMS and ANCs, in order to support the full roll-out of those programmes.

Immediate reopening of the BDGP and additional funding of €25m to increase support for the suckler cow is in the IFA pre-budget submission.

Further calls

The ICSA calls for continuation of a favoured regime of taxes for agri diesel and supports an allocation of €25m to a new sheep scheme “based on a menu of options”.

ICMSA rejects proposals in the Cassells Report on funding third-level education with regard to treatment of capital assets, arguing that farm assets are productive assets and any capital value must not be attributed to them other than income derived from their use.

The ICMSA also proposes that farmers should be allowed to claim VAT back on farm safety equipment and that a PTO scrappage scheme should be introduced.

Macra calls for further support for agricultural education, advisory and research in Budget 2017, as well as greater flexibility in the implementation of the 100% young farmer Stock Relief to reflect farm development.

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Full coverage: Budget 2017