Retention of stock relief and capital allowances for buildings welcomed

THE retention of both the 100% stock relief for trained farmers aged under 35 and capital allowances for farm buildings in yesterday’s budget is great news for your farmers, according to Macra na Feirme.

The young farmer group said the budget represented a clear decision by the Government to build a future on the land for Ireland’s young farmers. Macra and other farm organisations said that they were given the clarity they had been seeking on many of the farm-related tax questions.

The hope is that more young farmers get to take up farm ownership. Farm ownership in Ireland and throughout the EU is dominated by older farmers.

Macra’s agricultural affairs manager Derry Dillon said: “Eurostat puts Ireland at about 6.9% of farmers under 35 years of age, which is around the average for the EU’s 4.5 million farmers. One in every three European farmers is 65 or older. The age profile is notably younger in eastern Europe.

“Transferring land is a major decision. Farming needs young people. They are quicker to adapt to new technology. They give greater productivity. Those countries with a younger age profile will be more likely to come up with solutions, to adapt and to change farming practices to meet future challenges.”

Mr Dillon said that Irish farming will be at a clear disadvantage relative to east Europe unless a greater number of young Irish farmers get to take up ownership of family farms.

On the plus side, he said that yesterday’s budget decision to renew Stock Relief provisions for young farmers for another two years should, hopefully, help ease the way for more young people to take up ownership of farmland.

Macra president Michael Gowing welcomed the renewal of 100% Stock Relief for young trained farmers, saying it was a vote of confidence in both the Food Harvest 2020 report and young farmers.