Farmers unhappy with measures

FARMERS have taken a hard hit in the budget, their leaders claimed last night as they studied the various measures.

Irish Farmers Association (IFA) president Pádraig Walshe said the decisions come on top of the cuts already imposed in last October’s budget.

He said increasing the income levy on gross incomes coupled with the cuts in the Rural Environment Protection Scheme (REPS 4), forestry and the fallen animal scheme will severely hit farm incomes.

“Farm income, which fell by over 12% in 2008, and is facing a similar decline this year, have been further hit by the Minister’s doubling of income levies and expenditure cuts,’’ he said.

“The doubling of the income levy on gross income unfairly discriminates against farmers and the self-employed.

“As the levy is based on gross income, which makes no provision for capital expenditure, it seriously discriminates against farmers and other self-employed taxpayers whose businesses require significant amounts of ongoing capital investment.

“At a minimum, the Minister must reform the income levy calculation in the Finance Bill to ensure that it impacts equitably on all taxpayers by applying it to income after the deduction of capital allowances.’’

In relation to REPS 4, Mr Walshe said a 17% cut in the rate of payment is a breach of the five-year contract, which 12,000 farmers have already signed.

He said the Department of Agriculture must now reduce the cost of compliance with the scheme proportionately, and planning fees must reduce accordingly.

On forestry, the IFA President said cuts of up to 10% in payments will have a very negative effect on incomes and directly impact on the Government’s policy of developing the sector.

Macra na Feirme president Catherine Buckley said the budget is a further blow to young farmers. She said the Government had failed to provide any positive signal that they are committed to supporting young people in this key export led industry.

Ms Buckley said the unjustified cuts in REPS, Forestry and the fallen animal schemes is a final blow for many farm households following on from last year’s budget cuts.

Fine Gael agriculture spokesperson Michael Creed said the level of ambiguity in the budget statement relating to agriculture was staggering.

“Farmers are amongst the lowest earners; however they have again targeted in the supplementary budget,’’ he said.