Farm groups relieved at retention of supports

FARM groups have reacted favourably to many aspects of the budget, notably the decision to maintain funding for core farming supports such as the Disadvantaged Areas Scheme, REPS, suckler cow welfare and forestry schemes.

Irish Farmers Association president John Bryan said the budget had recognised the vital role farming, forestry and the wider agri-food sector played in driving exports and maintaining jobs.

“The farm schemes — especially Disadvantaged Areas, REPS, Suckler Cow Welfare and forestry — are vital in maintaining low-income family farms. The decision to keep them in place and to provide for a new AEOS scheme, for the 10,000 farmers leaving REPS3 in 2011, is very welcome.”

Minister for Agriculture, Fisheries and Food Brendan Smith said the 11% cut in his department’s spending for 2011 was largely due to a cut in farm waste management scheme payments, €100m of the final instalment of which had been brought forward to this month. “Including EU funding of €1.278bn, my department’s total expenditure in 2011 will be almost €3bn. Budget 2011 recognises that the agri-food industry has a key role to play in economic recovery. The sector is very labour intensive and is a vital part of the rural economy.”

However, both the IFA and the Irish Creamery Milk Suppliers (ICMSA) both criticised the tax, PRSI and social welfare changes, which they judged to be too hard on low-income families, including those in farming. The main farm groups also said the 20% reduction in the Capital Acquisition Tax threshold would impact negatively on the transfer of family farms to young farmers.

ICMSA president Jackie Cahill criticised the social welfare cuts and fuel taxes, but welcomed the AEOS and stock relief provisions. “The decision to abolish accelerated capital allowances for farm investment will necessitate increased borrowings for investment. The increase in excise duty on auto diesel is inexplicable given the drive for an export-led recovery.”

Picture: John Bryan: Farm schemes vital in maintaining low-income farms.