Budget promises ‘huge changes’ in farm tax reliefs
Up to 12 changes in tax policy will make it the most important budget yet for tax measures in the farming sector, following the review by the Departments of Agriculture and Finance, which was announced in the 2014 budget.
Among the key policy areas identified for examination in this review are encouraging and attracting young farmers and new entrants to farming, and succession and earlier lifetime transfers within families.
Switching farmers from conacre towards long-term leasing will be a big element of the new measures, which are designed to maintain the value of supports to the agricultural sector while re-calibrating them for today’s challenges. The budget will bring a more strategic approach to agricultural taxation, to deal with generational change, challenges from climate change, income supports, land transfers and other key issues.
Generational change is one of the major challenges for the agriculture sector, with 2010 data showing more than half aged 55 years or older, and more than a quarter aged over 65 years. From 2000 to 2010, the number of farmers under 35 years more than halved, to less than 6%.
Already in place are stamp duty exemption on transfers of land to young trained farmers; 90% agricultural relief from capital acquisitions tax; and retirement relief from capital gains tax for the over-55s. These are being reviewed to maximise the benefits of the existing level of support.
“If we are to plan for a growth period in agriculture, as we must, and if we want to be the leading country in terms of agricultural innovation, as we want to be, we need a new generation of farmer to be part of that story,” said Minister Coveney.
