We’re not free to farm yet
They are ready to face the new challenge, with IFA leader John Dillon advising fellow farmers that they must scale up production to remain viable after the latest post-CAP Reform.
But he recognises that farmers must not over-extend themselves financially in the rush to expand, and correctly identifies land availability and land price as their main obstacle.
Freeing up that bottleneck should now be one of the aims of the Government, as part of Agriculture Minister Joe Walsh's drive to ensure a smooth transfer to the new CAP arrangements, and to ensure that Irish farmers and the agri-food sector can fully exploit the new opportunities.
He has played his part in the most radical policy shift for agriculture in the history of the European Union, and decisively opted for full decoupling in Ireland.
But there is no escaping the remaining problem of structural imbalance which could leave Irish agriculture at a major disadvantage as it tries to keep pace in the rapidly changing European farming sector.
Nowhere is Ireland's cast iron property legislation more relevant than in farming, but farmers themselves know that more flexibility is required. IFA has courageously attacked our near-sacred protection for property holders, saying we must harness land as a productive resource, and avoid unduly dwelling on the owner and asset issue which can best be separated in a leasing programme, according to John Dillon, president of the Farmers Association.
To make any progress in this area, Minister Walsh must in turn harness the co-operation of his Cabinet colleagues, and Finance Minister Charlie McCreevy could start the ball rolling in his Budget with legislation to open the way for secure longer term farm land leases.
IFA says he should use the income tax codes to incentivise land leasing on a medium to long term basis as an effective and realistic option to allow farmers improve competitiveness and secure long-term viability.
Current legislation in this area is ineffective, with for example tax relief on rental income from farm land only for those over 55.
Frustrated by the closed shop of land prices beyond their reach and the ineffective leasing legislation, young farmers say landowners who are not committed to farming must be encouraged to release their land to those who want to farm it commercially.
Instead of progress in this area, farmers have seen Finance Minister Charlie McCreevy abolish Capital Gains Tax "roll-over" relief, and levy extra stamp duty on land swaps both measures holding up the consolidation of farm holdings, and removing some of the freedom to farm which Minister Walsh has promised through his introduction of full decoupling in 2005.
Freedom to farm is of use only to a strong core of full time farmers with the capacity and scale to continue farming in the difficult environment ahead.
For others, decoupling could mean freedom not to farm, with a winding down of farming activity and dependence on EU handouts, because high land prices and leasing difficulties put farming viability out of reach.
