Farm Ireland

Tuesday 23 January 2018

ICMSA: average dairy farmer will be hit by €2k hike

nThe ICMSA said that a dairy farmer with 40 cows has ended up being hit for €2,000 in this year's Budget.

ICMSA president, John Comer, said that many of his organisation's members will lose €350 a head in DAS payments, pay €200 in the new property tax, lose €250 a year with the lower flat rate VAT refund of 4.8pc, along with €900 from the discussion group payment.

"Between the other cuts to child benefit and increases in car taxes, even small and medium-sized farmers will see their tax-take increase by close to €2,000 a year," said Mr Comer.

nThe cost of hosting the EU presidency has added at least €1.3m to the bottom line of the Department of Agriculture's costings for 2013.

The presidency moves to Ireland in January 2013 and lasts for six months.

During this time, the Irish administration will be required to host several high level rounds of talks and negotiations.

One of the busiest sections is likely to be the agriculture section, with Minister Coveney pushing hard for a deal on CAP reform before June.

If these CAP reform negotiations are successful, the Department of Agriculture faces another hefty bill of at least €1m to develop new IT computer systems to handle the new schemes and payment criteria.

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nOne of the biggest surprises on Budget day was the absence of a roll-over on Stamp Duty Relief for young farmers.

At a rate of 1pc on the value of farm transfers, the tax had the potential to hit farmers under the age of 35 with five-figure tax bills when transferring the family farm.

However, within 24 hours of the Budget being delivered in the Dail, confirmation arrived that the relief would be reinstated in the Finance Act later this month.

Indo Farming