Department receives €283m boost in Budget bringing its overall funding north of €2bn
The Department of Agriculture, Food and the Marine has received a €283m boost as part of Budget 2023, bringing its overall funding to €2.1bn next year.
Minister for Public Expenditure and Reform Michael McGrath highlighted that 2023 is an important year for the sector with the commencement of the new €10bn CAP strategic plan 2023-2027.
“Over €500m of the total allocation will strengthen the sustainability of Irish agriculture and drive the sector's climate ambitions,” he said.
“The agri-food sector is an important contributor to our rural and national economy and in recognition of its exposure to the potential adverse impacts of Brexit, I'm allocating €238m to the Brexit Adjustment Reserve to alleviate the impact of Brexit on the sector.”
Minister for Finance Paschal Donohue also said there will be accelerated capital allowance for the building of modern slurry facilities.
This funding package, will maintain supports across the sector while also providing for a number of new measures, including:
Five key agricultural reliefs, including young trained farmers, restructuring relief and farm consolidation stamp duty relief, were also extended.
On the extension of reliefs: Young Trained Farmer Stamp Duty Relief, Farm Consolidation Stamp Duty Relief, and Farm Restructuring Capital Gains Tax Relief have been extended to December 2024.
Young Trained Farmer Stock Relief, and Registered Farm Partnership Stock Relief were extended to December 2025.
A temporary energy support scheme will be administered by Revenue and will operate on a self assessment basis and will have a monthly cap of €10,000/month/business.
Michael McGrath also announced today that new funding would be made available for a second phase of the soil sampling programme in 2022; fully establishing the Food Ombudsman; and delivering on the Programme for Government commitment to double ex-gratia funding for Animal Welfare Organisations by 2022.
A new beef scheme, energy supports and funding for liming of soils are expected to be announced.
There were concerns that with the BEEP-S scheme ending, there would be no new suckler scheme, however Minister McConalogue will have a new plan with a similar level of funding to the €28m BEEP-S and it’s understood it will sit alongside the €150/cow Suckler Carbon Efficiency Scheme in the new CAP.
In relation to the incoming new CAP, €20m in funding has been secured for 30,000 places in ACRES for 2023. There will also be extra funding for TAMS, forestry and organics, as well as the new and enhanced suckler and sheep supports.
There will also be specific capital funding to support the development of anaerobic digestion in 2023.
To help farmers deal with high fertiliser prices, the minister will have an enhanced Multi Species Sward/Red Clover scheme plus the introduction of a new €8m grant aid scheme to support the spreading of lime. This is as well as the new €10m Tillage Incentive Scheme which the minister announced at the Ploughing Championships last week.