IFA calls for tax breaks to drive green energy projects on farms

A tax break for farmers to help drive renewable energy projects is one of the key proposals in the IFA's pre-budget submission.

The association has called for the Government to classify land used for solar panels as a qualifying asset for Capital Acquisitions tax relief.

IFA economist Rowena Dwyer said there must be supports put in place to incentivise farm-level renewables rather than "large industrial scale" developments.

"There is a very important social and rural economic dividend to encouraging on farm investment in renewable energy and not just maybe farmers being passive in this area," she said.

Martin Stapleton, chair of the IFA's farm business committe, said there is significant scope for Irish farmers to help the country meet the renewable energy commitments.

He said solar panel developers could be given priority grid access if they returned a share of their profits to the host communities.

Low-interest loans

The IFA proposal comes as a 34,000sqm Co Clare solar farm which could generate enough power to supply 2,000 homes was the latest to gain planning permission.

The wide-ranging Budget submssion also seeks a low-interest loan scheme of up to €500m, a €50/cow rise in the BDGP scheme and an extra €5/ewe in the sheep scheme.

Other tax measures sought include reducing the VAT on animal medicines and extending income averaging to instances where the farmer or their partner has additional off-farm income.

An increase in funding for the Fair Deal nursing home scheme to change the way farms and other small business assets are treated has also been sought.