Budget needs to provide stability in the agri-food sector
ICMSA President, Pat McCormack, on his Tipperary farm. File Photo.
The Irish Creamery Milk Suppliers’ Association (ICMSA) has indicated that the Budget must “position farming and agri-food for post-Covid-19 recovery”.
The Association’s president, Pat McCormack - who was speaking in advance of tomorrow’s Budget - said that while farmers realised the constraints that Budget 2021 would be delivered within, specific measures are required to enable the farming and agri-food sectors to deal with the ongoing challenges presented by Covid-19 and Brexit.
“We have to have stability in the agri-food sector that will give us the platform from which to build a recovery right throughout the country,” he added.
“It is also vital that everyone understands, that even if we get the optimum deal of the type that we certainly required for post-Brexit trading, it will still be a step down on present arrangements and will impact on the sector most exposed to the new ‘downgraded’ arrangements - farming and agri-food.
“It is therefore necessary for the Government to plan support for this vital export sector in a way that best utilises and complements the EU Brexit fund.” With regard to taxation measures, ICMSA says that the disparity between the Earned Income Credit allocated to PAYE workers and self-employed individuals should be closed while “practical and uncomplicated measures” that smooth the transfer of family farms to the next generation need to be retained and improved.
“The underpinning role that farm schemes play in overall farm income needs to be recognised and protected,” Mr McCormack continued.
“Pillar II schemes such as ANC, GLAS and TAMS need to be retained and fully funded for 2021 and the Minister also needs to make provision for a Dairy Calf-to-Beef Scheme that would improve the integration between the dairy and beef sectors, benefit both and strengthen the wider rural economy.
“We need better integration of these two sectors and the Government could signal and accelerate that process by introducing this scheme.
“While nobody is under-estimating the challenge facing the Government in Budget 2021, exports provided by the agri-food sector will be required if rural areas are to participate in the post-Covid recovery.
“Farming and food production in Ireland possesses specific natural and technical skills that make us world-leaders and this has to be protected, fostered and grown in a sustainable way.”
