Farm Ireland
Independent.ie

Thursday 29 June 2017

Seven key Budget measures for farmers

A number of key measures in relation to farming were announced in Budget 2017.
A number of key measures in relation to farming were announced in Budget 2017.
Margaret Donnelly

Margaret Donnelly

We outline 7 key Budget measures that farmers should be aware of following on from the Budget

Low Cost Loans

The availability of EU-backed low-cost loans will see farmers able to avail of loans at less than 3pc. It is understood that €150m will be available to farmers and the loans will be operated through the banks.

VAT Refund

Agri measures in the Budget include an increase in the farmers' flat rate VAT refund from 5.2% to 5.4%, with effect from January 2017. This compensates farmers who are not registered for VAT.  

€10/ewe

Today’s budget had good news for sheep farmers, with the Minister for Public Expenditure Paschal Donohoe announcing some details of a new €25m sheep scheme. This will come into effect through a €10/head ewe payment under a Sheep Welfare Scheme.

Income Averaging

Under the income averaging ‘step out’ farmers who pay tax on an income averaging basis will be able to 'step out' of the five-year averaging process if they experience an unexpected poor income year. Farmers can avail of this measure for 2016.

Capital Acquisitions Tax

Under the Capital Acquisitions Tax relief measures, the thresholds have been raised to allow a lifetime threshold of gifts and inheritance between parents and children from €280,000 to €310,000, while the tax-free threshold applying to gifts and inheritances made to parents, siblings, nieces, nephews or grandchildren is being raised from €30,150to €32,500.

Raised Bogs

Owners and rights holders of raised bogs were also mentioned in the Budget and the bogs will now be exempt from Capital Gains Tax for payments under the raised bog restoration incentive scheme.

GLAS

The Green Low-Carbon Agri-Environmental Scheme (GLAS) has been given a boost in the Budget, with extra funding allocated to it, to entice an extra 50,000 farmers sign up to the scheme.

The Minister for Public Expenditure and Reform Paschal Donohue detailed the increase spending on GLAS under his spend on climate change.

He announced that the Government is increasing funding to the Green Low-Carbon Agri Environmental Scheme (GLAS), within the Department of Agriculture by €69m to €211m.

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