'Future is frightening' for horticultural growers as they urge Government to introduce support
The unprecedented spike in costs over the past 18 months has not abated for growers, IFA fruit and vegetable chairman Niall McCormack said.
The "future is frightening" for horticultural growers, who have urged the Government to reintroduce the Horticultural Exceptional Payment Scheme with enhanced rates covering all sectors.
Irish Farmers' Association fruit and vegetable chairman Niall McCormack, following a meeting with Fine Gael Senator Regina Doherty, said that horticulture remains "under intense pressure", with more growers having exited production again this year.
"The unprecedented spike in costs over the past 18 months has not abated for growers," Mr McCormack said.
"The bills have not come down yet and we cannot ignore that the Irish horticulture sector is still in turmoil."
The IFA has urged the Government to reintroduce the Horticultural Exceptional Payment Scheme.
The scheme is a support measure introduced as a once-off payment to growers last year worth €2.8m, funded from Ireland’s allocation for exceptional adjustment aid to producers in agricultural sectors which have been impacted by Russia’s illegal invasion of Ukraine.
Regina Doherty told the IFA she was "confident that the funding can be put in place".
Mr McCormack said that the amendment to the Finance Act last year to allow an exemption on natural gas carbon tax for horticultural production is welcome, however, detail of how this would be administered is still unknown.
Ms Doherty gave a commitment that a full tax rebate would be available for 2023.
The issue of work permits was also raised at the meeting.
"It is critical that the Irish horticulture sector has access to a continuous supply of labour," Mr McCormack said.
"A bespoke seasonal work permit scheme must be introduced without delay. The fact that the UK and many other European countries have work permit programmes in place puts Irish growers at a competitive disadvantage."
IFA also challenged the "penal nature" of the Residential Zoned Land Tax, and called for the immediate introduction of an exemption for active farmers.
Mr McCormack said that what is in place is "nothing short of a land grab exercise", and it will force the sale of intergenerational held and farmed land.
"There's a huge amount of emotional stress among impacted farm families as a consequence of this disproportionate and unfair tax. Urgent action and amended legislation are needed to protect impacted farm families," Mr McCormack said.
IFA president Tim Cullinan said that at the National Economic Dialogue in Dublin this week it was "encouraging to hear a number of Government ministers confirm to IFA that this issue will need to be fixed".
"Many farmers are very worried about the impact this tax may have on their farm and family and it is not fair for them to have to continue under this level of stress any longer," Mr Cullinan added.
From IFA analysis, using the average price of zoned land outside of Dublin, farmers could face a tax of over €2,600 per acre per year under the current legislation.
