€10 million for tillage in Budget 2021

€10 million of the €79 million in new funding for pilot measures in the agri-environment area will go towards the tillage sector, according to Minister for Agriculture Charlie McConalogue.

In a statement, Minister McConalogue outlined how he was conscious of the pressures faced by tillage farmers at present.

I am extremely conscious of the pressures on the tillage sector this year, and will be ring fencing some €10 million of this sum specifically for that sector.

A total of €79 million has been set aside for the development of a pilot scheme to encourage environmental action from farmers who are not currently in the Green, Low-Carbon, Agri-Environment Scheme (GLAS).

He stated: “I expect these pilot actions to inform the development of a major new environmental scheme for agriculture following on from the GLAS scheme.”

A proportion of the €79 million in funding will also contribute to the development of new initiatives on farm safety.

Carbon tax

€20 million in revenue arising from carbon taxes is to be allocated to these pilot environmental programmes in agriculture.

The carbon tax was increased to €7.50/t in Budget 2021 and this increase came into effect today (October 14).

The carbon tax will continue to increase by €7.50/t per year up to 2029 and by €6.50/t in 2030 with the aim of eventually costing €100/t.

Flat-Rate VAT Rise

The flat-rate Value Added Tax (VAT) which farmers receive on grain for example will increase from 5.4% to 5.6% from 2021.