Farming and agri-business sector ‘can drive recovery’

IRISH Creamery Milk Suppliers Association (ICMSA) president Jackie Cahill believes that with the proper incentives, farming and the agri-business sector can drive Ireland’s economic recovery.

He notes that more than 90% of Irish beef and 85% of Irish dairy products are exported. In 2009, the sector’s exports were worth €7 billion, or 9% of our total exports.

“We have identified 10 areas where the Government can make a decision that will improve the prospects of Irish farming and improve the prospects of our biggest indigenous export sector,” said Mr Cahill. They are:

nDeductions for capital allowances and pension contributions must be taken into account prior to calculation of the new social contribution and be on the same income base for both employees and the self-employed. Pension premiums paid by self-employed should be exempt from PRSI and Health Levy.

* An earned income credit should be phased in over a short period of time for the self-employed and be equal to the PAYE allowance.

* Allow farmers to avail of income averaging for their farm income, regardless of whether they or their spouse having another income. The Income Tax Code must allow for greater flexibility in tax code due to cyclical nature of farm income.

* Guidelines relating to farm consolidation relief must be changed to allow for eligibility on basis of transfers that do not involve whole parcels and where a farmer acquires land to create a viable holding, the liability for stamp duty should be offset against income tax on farm profits.

* ICMSA supports the Commission on Taxation proposal that Capital Gains Tax rollover relief should apply to the gains on disposal of farm land pursuant to a Compulsory Purchase Order where the proceeds are re-invested in farm land.

* Extend the income tax relief on land leases between family members, where lease is for a definite term of five years or more and that land leasing income tax relief must be continued post-2012.

* ICMSA supports the Commission on Taxation Report proposal that agricultural relief for Capital Acquisitions Tax must be maintained at 90% of the value of the property with no limit on asset value.

* The 100% stock relief facility should be extended to all farmers up to a maximum additional investment of €100,000 and the 25% rate would apply thereafter.

* ICMSA oppose any further cuts in the funding of farm schemes and propose that adequate funding must be provided for a properly resourced scheme as a replacement for REPS 3 contracts that expire in the period 2010–2012.

* ICMSA is opposed to any cuts in the Disadvantaged Area payments. Suckler Cow Welfare Scheme payments must be increased to €80/cow.