Expansion and reform is crucial, says Bryan

RESTRUCTURING and expansion in farming will only happen if the budget retains current expenditure levels on farm schemes, including REPS, the AEOS, Suckler Cow, Forestry and Disadvantaged Areas schemes, and taxation reliefs, according to IFA president John Bryan.

Mr Bryan said: “Taxation measures that facilitate farm restructuring and transfers are fundamental to retaining our family farm model through the generations. Stock and other reliefs are critical to increasing output to meet the Food Harvest 2020 targets. Any changes to income tax must be equitable across all sectors.”

He added that the existing taxation reliefs are essential to encourage structural reform and competitiveness in agriculture. These include long-term land-leasing, stamp duty relief, capital gains retirement relief, stocking relief and agricultural relief for farm transfer.

“It is vital that these reliefs are retained in Budget 2011 as any reduction would disincentivise farm transfer, investment and consolidation, and place an unaffordable tax burden on farmers.

“In Budget 2011 it is vital that funding for farm schemes is maintained. As a priority, the AEOS scheme must be extended for all farmers leaving REPS3, the Suckler Cow Welfare Scheme must be fully funded and forestry and other payments must be fully maintained,” he said.