Budget ‘won’t keep pace’ with rising costs

Irish Farmers' Association president Tim Cullinan said that the budget contains "some of the targeted measures" that are needed to address the challenges facing the sector. Picture: Gareth Chaney/Collins

The Budget 2023 package delivered for the sector will help farmers — but there are concerns that it was, overall, a “missed opportunity”, and that it “won’t keep pace” with the rising input prices that farmers are experiencing.

The budget for agriculture is €2.14bn, an increase of €283m, or 15%, on the 2022 allocation.

Some key measures announced by Agriculture Minister Charlie McConalogue include the continuation of the €10m Tillage Incentive Scheme in 2023; up to €30m for a fodder support scheme, to be paid in December this year; and funding for a new scheme to continue beef welfare measures that were previously funded under BEEP-S.

There has also been a commitment to support for offsetting high fertiliser prices through grant aid schemes for multi-species swards and red clover, as well as a new €8m liming scheme.

Farmers will also benefit from the new Temporary Business Energy Support Scheme that will address energy price increases, while Mr McConalogue has confirmed an increase in TAMS to €90m to fund the proposed increase to 60% grant rate and a standalone investment ceiling of €90,000 for solar panels on farms next year.

Meanwhile, €218m has been committed to agri-environment schemes including the Agri-Climate Rural Environment Scheme and locally led schemes, along with a record level of funding for the Organic Farming Scheme of €37m.

Increase in input costs

Reacting to the Budget 2023 announcements, Irish Farmers’ Association president Tim Cullinan said that the budget contains “some of the targeted measures” that are needed to address the challenges facing the sector.

“The fodder, tillage and suckler schemes won’t be enough to mitigate the 40% increase in farm inputs, particularly for the low-income beef and sheep sectors,” Mr Cullinan added.

Irish Cattle and Sheep Farmers Association president Dermot Kelleher said that beef finishers and sheep farmers would be “very disappointed that there is no targeted support for them”.

The Irish Creamery Milk Suppliers Association has called on Government to exempt farm environmental construction from the levy, with president Pat McCormack saying that the budget sends “mixed messages to the large number of farmers trying to invest in environmental improvements”.

Irish Natura and Hill Farmers Association president Vincent Roddy described Budget 2023 as a “missed opportunity”, and expressed disappointment over “the lack of support and recognition for farmers operating on designated lands”, who have “seen their income potential restricted and endured additional costs”.

Meanwhile, farm leaders have welcomed the extension given to a number of young farmer tax reliefs in the budget, with Macra na Feirme president John Keane saying they are “essential to support generational renewal”.