High land prices will limit numbers entering farming

LABOUR TD Michael D Higgins has highlighted the difficulties for expanding farmers and young entrants to farmers posed by the farmland price rise, now running way above the level of general inflation, who wish to expand or for persons who wish to enter farming for the first time.

Replying in the Dail , Agriculture and Food Minister Mary Coughlan pointed out that inheritance, generally within families, is the major means by which land changed ownership.

She confirmed that farm land prices more than doubled in the past seven years, reflecting a shortage of land on the market and growing demand from agricultural and non-agricultural buyers.

She said this trend has encouraged many who wish to expand or to enter agriculture to opt for leased land. Almost one fifth of all agricultural land is leased, with one farm in three leasing in some land.

Minister Coughlan said there are generous income tax disregards for farmers who lease out land on a long-term basis, and the early retirement pension scheme also encourages sale, transfer or long-term lease of land.

Lessors aged over 40 can avail of tax exemption of up to €7,500 for leases of five to seven years, and up to €10,000 for leases of 10 years or more.

For new entrants, generous grants and tax reliefs include installation aid, 100% stamp duty relief on land, a 90% relief from capital acquisition tax, and 100% stock relief for four years for eligible farmers.