Calls to revamp ERS scheme
The calls were made following recent reports that Agriculture and Food Minister Mary Coughlan is considering scrapping the scheme.
Fine Gael spokesperson Denis Naughten said that despite a significant fall-off in the numbers entering the ERS, the Government should not throw the baby out with the bathwater.
“There is no doubt that the ERS needs to be significantly restructured to cater for the changes brought about by the introduction of the Single Farm Payment.
“But that should not mean that we abandon the principle of the scheme which is to release land to younger progressive farmers,” he said.
Mr Naughten said tax anomalies associated with land transfers are critical for the future of any scheme
He said the tax implications associated with land leasing and farm consolidation inhibit the efficiency of many family farms.
He said stock relief and other incentives need to be put on a permanent structure so young farmers can focus on planning for the future rather than worry if Government policy is going to be maintained.
“Furthermore, the structure of training and supports for young farmers must be reviewed to ensure that it is more reflective of the economic environment.
“Continuous upskilling courses should be made available, similar to what is happening in other sectors of the economy.
“Combined with this, the rate of payment of installation aid must truly reflect the cost of taking over and reinvesting in the farm.
“Rather than abandoning young farmers the Government must become more responsive to their changing needs,” he said.
Macra na Feirme also called on the Minister to make significant improvements to the scheme.
President Colm Markey said the level of pension paid under the scheme was the primary reason for its decline. It was not attractive enough to older farmers.
More than 12,000 farms have been transferred under the scheme since it was introduced in 1992.
“While the rate of progress has dropped of in recent years, I am confident a revamped scheme would be effective,” he said.
He said scrapping the scheme would send the wrong signal at a time when 45% of farmers are older than 55.
IFA Rural Development chairman Padraic Divilly said the EU commitment to have an early farm retirement scheme as part of the rural development policy from 2007 must be matched by Government support.
