Macra calls for doubling of 100% Young Farmer Stock relief to €150,000

Stock relief is an invaluable tool for young farmers who want to grow their business, according to Macra’s Derry Dillon.

Speaking to Agriland at this year’s Ploughing, Macra’s Agricultural Affairs and Rural Development Manager highlighted the importance of this relief and also discussed the contents of its pre-Budget Submission.

According to Dillon, the 100% Young Farmer Stock relief is important as it reduces the taxation bill young farmers face which stifles expansion.

In its pre-Budget Submission, the organisation has called for an extension of this relief, which is set to end in December of this year, bringing the new cut-off to 2020.

Macra na Feirme has also called for an increase in the value of this relief from the current €75,000 to €150,000.

According to Dillon, this relief works by offsetting the increase in the value of a young farmers stock against tax from the beginning to the end of the year.

“This policy allows young farmers to invest in stock and to grow their business in the first four years of taking over the farm.”

Macra’s suggested changes to the 100% Young Farmer Relief

  • Relief should be increased from €75,000 to €150,000
  • The 100% young farmer stock relief should be extended to 2020
  • Extend the trained young farmer stock relief from four to five years
  • Increased flexibility around the beginning of this scheme 

The young farmers representative body are also calling for a more flexible approach for the implementation of this policy.

“Young farmers often develop 5-8 year business plans, and we would like to see some more flexibility in the implementation of this 100% stock relief.

“This change would allow farmers to use this relief in the third or fourth year of business rather than in the first year,” said Dillon.

According to the Macra representative, this change would be very beneficial to farmers as it would allow them to focus on developing infrastructure to hold increased numbers of stock.

“If is very difficult to expand stock numbers if you haven’t the infrastructure, you end up having to invest in infrastructure and you are not able to really grow your stock numbers.”

Dillon added that this relief which is available to young farmers us to be a lot higher in previos years but it has been reduced to the current €75,000.

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