ICMSA want Inheritance Tax reforms to distinguish between farm succession and ‘High Net Worth’ investors

Speaking following a meeting between the Minister for Agriculture, Food & Marine, Charlie McConalogue, and an ICMSA delegation in relation to farmer priorities for Budget 2025, the association’s President, Denis Drennan,  said that this last Budget by the present Government must deliver for farmers across a range of issues, particularly around the falling incomes being experienced across all sectors. Mr. Drennan said, that ICMSA presented its full Pre-Budget Submission to the Minister and had a detailed discussion on a number of specific items including:

• A measure to address excess income volatility within the farming sector whether caused by output or input prices, weather, or the regulatory burden on farmers.   Mr. Drennan noted that the Programme for Government drawn up almost five years ago had made a commitment on a volatility measure that had not been delivered to date. He said that Budget 2025 provides this Government with its last opportunity to deliver a measure that was eminently logical and do-able, while being critical to the future of Irish farming.
• The need for inheritance tax reform to support the transition of the family farm from one generation to the next and supporting farmers in the land market. Mr. Drennan said that in this regard, ICMSA is proposing an increase in the Class A threshold from €335,000 to €500,000 and an amendment to the reliefs to ensure that farmers are favoured over investors in land.
• A 70% grant for all farmers investing in slurry storage facilities.  Considering the massive increase in the price of (particularly) concrete and the generally low incomes in agriculture, ICMSA believes that a 70% grant for slurry storage would represent a very effective investment by Government in terms of supporting the delivery of sustainability improvements in Irish agriculture.
• A Dairy Beef Calf Scheme delivering a payment of €100 per head for the calf rearer and a further €100 per head for the cattle finisher subject to certain criteria.   Dairy beef now accounts for over 65% of total beef production in Ireland with a ready-made supply of calves from the dairy herd and – very notably – it is a very climate-efficient system of beef production.   This system of production needs to be supported and directed and a Dairy Beef Calf scheme delivering reasonable payments to farmers is an obvious ‘win’ in terms of sustainability.
• ACRES participation increased to 70,000 farmers with a focus on intensive farmers.
• Amendment to VAT and/or capital allowances to support investment in environmentally friendly equipment on farms.  The transition to more environmentally friendly farming is both costly and challenging and the taxation system needs to support farmers who are willing to invest in environmentally friendly equipment that is not always economically justified.
• Funding for the Climate Change Vision Groups recommendations made to the Minister for Agriculture, Food & Marine, some of which were made over two years ago.   There were many positive recommendations from these Groups and to date, the Government has utterly failed to support the sector in their implementation.
• Fodder & cashflow are very current and serious challenges facing farmers and ICMSA impressed on the Minister the need to support farmers in what is an extremely challenging year following an equally difficult 2023.   Farmers produce the raw material for our largest indigenous industry delivering very significant net foreign earnings for the Irish economy and every reputable commentator had noted the extreme pressure farmers were under at present. Budget 2025 had to show farmers that the Government, to a real extent, understood that extreme pressure and were going to take action.

“The Budget gives the Government the chance to show us farmers that they (the Government) have our backs. They should take that opportunity”, said Mr. Drennan.

“We have put forward a number of eminently sensible and logical measures – none of which is expensive – that would make a real difference to farm families. They (the Government) will be judged completely on their willingness to act on these sensible and modest measures and include them in Budget 2025”, said Mr. Drennan.

Ends     23 July 2024

Denis Drennan, 086-8389401

President, ICMSA.

Or

Cathal MacCarthy, 087-6168758

ICMSA Press Office