'Rural Ireland doesn't matter' - Macra disappointed as long-standing issues not addressed in Budget

This afternoon saw the announcement of the 2024 budget by the government which saw a number of important agricultural reliefs that were due to expire at the end of 2023, extended to December 2028, a move welcomed by Macra. 

Elaine Houlihan, Macra National President, said:

"The taxation measures relating to farming in the budget, including the consanguinity relief and accelerated capital allowances for farm safety equipment, are welcomed and provide recognition that a suite of measures, including taxation, that address generational renewal in Irish rural farming communities is vital in ensuring that our system of family farms is passed onto the next generation."

Increasing the lifetime threshold for young farmer reliefs under the EU Agricultural Block Exemption from €75,000 to €100,000 is a positive step forward for young farmers and better reflects the reality of modern farming, a point that Macra has continuously highlighted over the last number of years.

Increasing land leasing tax reliefs to a minimum of 7 years, from 5 years improves land mobility for young farmers and the continuity of this important relief to provide certainty around access to land for activity farmers is welcome.

Finally, to recognise the role of farm partnerships, the Minister will bring registered farm partnerships into line with EU regulations by increasing stock relief from €15,000 to €20,000.  

Houlihan went on to say that:

"While these reliefs provide important supports to our young farmers and the farming community more generally, more focused supports are required for young farmers."

Young farmers face many challenges such as access to land and finance, which is now compounded by changing climate, inflation and rising input costs as we move collectively to a more environmentally aware future.

To increase the attractiveness of working in agriculture, we must look at different measures in a complementary way, such as taxation and incentives that enable land transfer. Generation renewal needs both the younger and older generation to work together, and Macra’s proposed pilot Succession Scheme specifically promotes and rewards intergeneration cooperation.

The Macra president expressed disappointment that the Budget has not addressed "the long-standing issue of rural decline and demographic imbalance within the farming community which is the backbone of rural Ireland."

Macra had lobbied hard for the introduction of a pilot succession scheme to facilitate the transfer of land production from one generation to the next. This transfer would have overnight increased the number of young farmers by 12%.

"Macra are very disappointed that the changes needed to meet our emissions targets are being loaded onto a workforce of which 1/3 are over the age of 65, Macra wants the young farmer to get a chance to show how farming can be sustainable", Houlihan added.

Ireland’s farming demographic points to an industry in decline, it is an industry that is aging and dying out. 33% of farmers are over the age of 65, while 6.9% of farmers are under the age of 35, in any other industry this would trigger immediate action, not so in agriculture.

Houlihan went on to say that "the omission of a succession scheme from this budget sends the message that it is business as usual, it is our friends, families and neighbours that are emigrating daily. Clearly, despite claims to the contrary rural Ireland does not matter."

This budget, whilst delivering succour for some, will facilitate mass emigration from rural areas.

The Macra president added "though others may give up, Macra does not, for the future of rural Ireland, we have no choice but to continue on our lobbying for a farm succession scheme, we have had considerable interest in the farm succession scheme from EU member states, the feedback that we have received is that it could be made to work on the continent."