IFA demands budget retains farm supports and taxation measures

IFA members have pledged their determination to help drive export-led growth for Ireland, once next week’s budget continues to support the industry.

IFA president, John Bryan, said: “The farm schemes and taxation measures provide an important stimulus to the rural economy.

“Expenditure on farm schemes, including REPS, the AEOS, Suckler Cow, Forestry and Disadvantaged Areas schemes, and taxation reliefs that facilitate restructuring and expansion, play a significant role in generating production. They must be maintained in next month’s budget.”

Mr Bryan said members of the IFA’s executive council, who met in Dublin yesterday, were angry that a failure of the regulatory, banking and political leadership threw caution to the wind in the good times, which has brought the country to its current position.

Mr Bryan added: “Taxation measures that facilitate farm restructuring and transfers are fundamental to retaining our family farm model through the generations.

“Stock and other reliefs are critical to increasing output to meet the Food Harvest 2020 targets. Any changes to income tax must be equitable across all sectors.”

He said the farming sector would be endangered by any alteration to tax relief measures such as long-term land-leasing, stamp duty relief, capital gains retirement relief, stocking relief and relief for farm transfer.

Mr Bryan said: “It is vital these reliefs are retained in Budget 2011, as any reduction would disincentivise farm transfer, investment and consolidation, and place an unaffordable tax burden on farmers.

“As a priority, the AEOS scheme must be extended for all farmers leaving REPS3, the Suckler Cow Welfare Scheme must be fully funded and forestry and other payments must be fully maintained,” Mr Bryan added.