Exclude farmland and buildings from any property tax, urges IFA

PRO-FARMER taxation and funding measures could keep Ireland’s fastest growing export business on track, Irish Farmers Association (IFA) president John Bryan said in a meeting yesterday with Taoiseach Brian Cowen.

Agri-food exports have risen 14% this year.

The IFA leader said that the exclusion of farmland and buildings from any new property tax, and funding for farmers leaving REPS in the AEOS in 2011, would keep Ireland’s 130,000 farmers pushing towards economic recovery.

The IFA leader also called for the payment rate of €80 per cow under the Suckler Cow Scheme to be fully restored; the payment in early 2011 of the final tranche of the Farm Waste Management Scheme; funding for Installation Aid hardship cases; and a new targeted scheme opened to encourage farm transfer and new entrants.

Mr Bryan said: “Proper funding for all farm schemes is critical in stimulating production and maintaining rural jobs. Sufficient savings can be found in the agriculture budget, under the current planned programme of expenditure, while at the same time maintaining funding for farm schemes in 2011. This will provide farmers with the confidence to invest in their businesses, and strengthen and stabilise the recovery already evident in the sector.”

On the tax front, the IFA leader also called for the repeal of the carbon tax; an extension of important farm reliefs, including stock relief, farm pollution control and stamp duty relief for farm consolidation and the existing taxation reliefs for farm transfer to be left untouched.

Mr Bryan also called for the deduction of capital allowances before the calculation of reckonable income for the proposed Universal Social Charge; and a low rate for the social charge with a low-cost and simplified returns system for low-income farmers.

“Significant investment and restructuring in agriculture will be required if the targets of Food Harvest 2020 are to be achieved,” said Mr Bryan.

“Any budget taxation measures must impact equitably on all income earners, improve the competitiveness of the agriculture sector, encourage investment in capital and promote land transfer and mobility.”

The IFA president also said the forestry premium must be maintained at its current level with funding for the forest road scheme increased; and that funding must be made available for the 5,000 applicants locked out of the Farm Improvement Scheme in October 2007.