Beef genomics scheme the main boon for farmers

A new beef genomics scheme is the main Budget feature for farmers.

It builds on Ireland’s world leading cattle breeding genomics research, and delivers an expected budget boost to suckler cow farmers, seen as playing a vital role in the beef industry.

Agriculture Minister Simon Coveney has allocated €23m to the genomics scheme, and indicated that some 32,000 herdowners can earn €40 per calf for up to 550,000 suckler calves, plus €20 from the existing Beef Data Programme (participants must join both schemes).

Full details of terms and conditions will be outlined later; IFA president John Bryan said Mr Coveney must ensure that all eligible animals secure the €60 payment in 2014.

Irish advances in genomics help farmers find cattle with the greatest genetic potential to increase profitability; Mr Coveney said the new scheme will also deliver world best practice in beef traceability.

At a cost of €8m in 2014 and €10m per year afterwards, a flat-rate scheme which compensates farmers not registered for the Vat incurred on their farming inputs has risen from 4.8% to 5%, thus reversing cuts of recent years.

At an estimated budgetary annual cost of €1m, Finance Minister Michael Noonan extended a capital gains tax relief to encourage older farmers who have no children to lease out their farmland over the long term to younger farmers. Landowners who avail of it can lease out their land, with a potential exemption from income tax, plus the new safeguarding of their capital gains tax exemption.

There is no change in the farm assist rate, but the Department of Social Protection aims to cut expenditure on it from €99.45m in 2013 to €91.6m in 2014.

Capital funds announced by Mr Coveney are expected to allow 7,000 hectares of grant-aided new planting in 2014.

The eligibility for Young Trained Farmers relief is also being extended by adding three more qualifying courses to the list of relevant qualifications required for the 100% rate of stock relief.

Included in the Department of Agriculture budget arithmetic were cost reductions in animal health and market support areas; staff pay savings over and above the Haddington Road Agreement; and the ending of some environment schemes. IFA president John Bryan said the absence of a new agri-environment scheme for the 13,000 farmers leaving REPS4 is a serious blow.

ICMSA president John Comer said initiatives on the taxation side were more positive than negative from a farming perspective.