Prospects have never been so good for young farmers and others in agri-business, Minister for Agriculture Simon Coveney has told the 70th anniversary Macra Na Feirme rally.
Delivering a keynote address to the opening of the young farmers’ annual conference in Co Laois, Mr Coveney said “prospects have never been so advantageous and exciting for all stakeholders in the agri-food, sector”.
He told young and aspiring farmers his first main policy objective was to increase land mobility – or the ability of young farmers to control their own farming operation - and the productive use of land.
While he acknowledged it was a “tough time” in the beef sector he said efforts were underway to ensure farmers were empowered to be price fixers, rather than be price takers at supermarkets or factory door. He said structural change such as “locking in prices” in advance with processors, may offer a way forward.
He said there was a growing consensus that access to land, and its productive use, was becoming more of an issue than ownership. But he said while there was an active rental market, the majority of these were short-term.
The recent Budget had introduced a 50 percent increase in the tax-free income thresholds for owners who leased out land for up to 15 years, and the removal of eligibility barriers and new relief on stamp duty.
Mr Coveney instanced the case of a young farmer who establishes a thirty-five hectare holding in 2015, who would will receive 35 entitlements from the national reserve, with an estimated value of €170 each giving a total value of €6,000.
He said such a farmer would also receive a “greening” or qualification payment” will add €2,700, while the direct payment under the Young Farmers Scheme will give a further €2,200.
“In the first year of farming in his own right, such a farmer would receive an estimated total payment of €11,000. A young farmer who has more land available to him would of course receive a higher payment”, the Minister said.
President of Macra Na Feirme Kieran O’Dowd said the organisation was “very much in approval” of the agri taxation review.
He particularly welcomed moves to make it more advantageous for landowners to let out their land to farmers on five-, seven- or 10- year leases, as attractive tax relief on the income would now be available to them.
But Mr O'Dowd said it was vital that State farming agency Teagasc had a sufficient budget to provide certified education for all comers. It was important that nobody be turned away.
He said it was the work of organisations such as Macra to “get the information on new policy and tax issues out there” as, he said, some professionals were advising land owners to be overly cautious with the letting of land.
“If someone had a properly executed contract there should be no problems in regaining possession” he said.
Mr Coveney also engaged in a question and answer session with the delegates.
He told them the sector was “pivotal” to the economic recovery, as befitted the State’s largest indigenous industry. Food and beverage manufacturing enterprises turned over €26 billion a year while agri-food exports increased to €10 billion in 2013. The sector accounts for about 170,000 jobs or 9 per cent of total employment, he said.
