Farm lobby seeks budget measures to support a viable farm structure

MEASURES to achieve a viable farming structure are being sought by the farm lobby in next Tuesday’s budget.

While recognising the difficult funding situation facing Finance Minister Brian Lenihan, IFA president Pádraig Walshe said it was important that government policy would continue to support the main exporting sectors including farming and food.

It is important to build on the progress already made to secure a tax and financial environment, which supports consolidation of farm holdings and increased scale and efficiency of farms,” he said.

Mr Walshe said the IFA is proposing an extension to the Farm Consolidation Stamp Duty Relief until June 2011 and the removal of unnecessary constraints in the qualifying conditions to maximise the scheme’s potential.

He said stamp duty rate bands applying to farmland should be reformed, similar to what has been done for residential property.

These bands have not been amended since 2002 and the top 9% rate is reached at a value of €150,000, whereas in the case of residential property the top rate is only reached at 1 million, he said.

Mr Walshe said the IFA is also proposing a major new initiative on renewable energy from micro-generation on farms and is seeking an extension to the year-end deadline to complete work under the Farm Waste Management Scheme (FWMS)

Irish Creamery and Milk Suppliers Association (ICMSA) president Jackie Cahill said the problems facing farmers in relation to completing works under the FWMS and the Farm Improvement Scheme need to be addressed as a matter of priority.

He said consolidation and enlargement of farm holdings is essential to increase the competitiveness, profitability and sustainability of farming.

Having a virtual complete tax barrier to farmers who are consolidating or enlarging their farm holding would not be in anyone’s interest.

Macra na Feirme president Catherine Buckley said the renewal of stamp duty and stock relief is top of its budget priorities.

Ms Buckley said both schemes are particularly effective and targeted measures that directly assist active young farmers who are building up their businesses.