Updated: 12/10/16 : 12:04:19
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farming

Budget responds to IFA campaign

IFA President Joe Healy has said Budget 2017 responded positively to IFA’s farm income campaign with significant measures on low-cost loans, increased funding for farm schemes, the reversal of cuts to Farm Assist and flexibility on income averaging to help deal with volatility.

 

Key agriculture measures in Budget 2017

 

  • New €150m agriculture cashflow support loan fund, at an interest rate of 2.95% to be available to farmers in all sectors.
  • New flexibility under income averaging, to be introduced for the current year, will allow farmers to opt out of averaging in an exceptional year. This will help farmers to manage the very difficult cashflow situation on farms this year.
  • €107m increase in funding of farm schemes under the Rural Development Programme
  • €69m increase for GLAS to €211m for 50,000 farmers
  • New €25m sheep welfare scheme
  • Re-opening of the Beef Genomics Programme, with funding of €52m for 2017 
  • Funding of €50m for TAMS
  • €111.6m for forestry and €5m for horticulture
  • Reversal of cuts to Farm Assist, along with €5 per week increase, and the provision for 500 extra places under the Rural Social Scheme.
  • Increase of €400 to the Earned Income Tax Credit to €950
  • Excise rate on agri-diesel and all road fuels remains unchanged
  • The flat rate VAT refund has been increased to 5.4% from January 1st. This is worth €9m.
  • Farm restructuring relief from CGT has been extended to the end of 2019
  • CGT rate for disposal of business assets up to €1m has been reduced from 20% to 10%
  • The SEAI scheme for accelerated capital allowances for investment in energy efficient equipment has been extended to sole traders.

 

Get a full summary of Budget 2017 measures for agriculture and farming on the IFA Website