Budget 2021: Some measures ‘better late than never’ - ICSA

President of ICSA Edmond Phelan. 

The Irish Cattle and Sheep Farmers’ Association (ICSA) has indicated its support for today’s announcement by Minister for Finance Paschal Donohoe that a new Food Ombudsman will be appointed as part of the latest measures introduced in Budget 2021.

Other measures announced today include the allocation of €79m for pilot agri-environmental schemes; funding increases for the organic farming and sheep sectors; the extension of stamp duty reliefs; and tax changes for the self-employed.

ICSA’s President, Edmond Phelan, said that while the Budget provided some “clarity” around the continuation of schemes and supports to farmers, it also provoked “some questions”. 

“The cloud of a possible Brexit failure and Covid-19 lockdowns over-shadow everything but ICSA welcomes the allocation of €79m for pilot agri-environment/REPS schemes and funds to roll over the existing GLAS, BDGP and sheep welfare schemes,” he added.

“The €45m allocation for a Covid-19 beef scheme to improve carbon efficiency may also be helpful but the devil will be in the detail when it comes to that.

“ICSA is concerned that there is no explicit mention of the continuation of BEEP-S and we want the Minister to clarify this as soon as possible.” 

Meanwhile, Mr Phelan said the organisation welcomed the Government’s commitment to organic farming by increasing funding for the relevant scheme.

“There is no point in grandiose ideas in the EU Farm to Fork Strategy without the necessary supports and it will also require a lot more effort in terms of driving new market access for organic beef and lamb,” he continued.

“ICSA has also lobbied hard for a trebling of the Sheep Welfare Scheme and this must be delivered.

“The overall increase in funding for the Department of €179m provides room for this; it also means that there should be scope for a more ambitious funding of a suckler brand strategy which should also receive a portion of the extra €25m ear-marked for Bord Bia.” 

Mr Phelan also pointed to the Food Ombudsman and highlighted how the office “must be given real power” to bring transparency to the food chain.

“ICSA welcomes that fact that finally, the tax discrimination against self-employed people such as farmers will end with the announcement that the earned income tax credit will increase to €1,650.

“This was originally meant to be achieved in three years but better late than never, although it should be noted that it will be 2022 before the benefit actually impacts farmers.” 

“The extension of the stamp duty reliefs - Consanguinity Relief and farm consolidation - means that the stamp duty for these land transfers remains at 1% rather than the punitive 7.5% and that is positive, however we are disappointed that there was nothing done to increase the Capital Acquisitions Tax thresholds.”