Allowances for energy efficient machines ‘will help farm businesses’

The Association of Farm Contractors in Ireland (FCI) has welcomed the Government’s decision to extend the scheme of accelerated capital allowances for investment in energy efficient equipment.

Earlier this week, the Minister for Finance, Michael Noonan announced that the scheme for sole traders will be extended under Budget 2017.

According to the association, this move implements the final recommendation of the agritax review and it will help businesses in the farming sector.

The decision has been welcomed by contractors as it essentially allows them to invest in energy efficient equipment and receive the full allowances in the first year.

And, it says that this will help to contribute to the achievement of Ireland’s climate change targets.

The association said it has campaigned for the introduction of accelerated capital allowances for investment in energy efficient equipment for the past three years.

In its recent pre-budget submission, the FCI proposal suggested that fuel savings of up to 15% have been shown in the use of the modern Tier 4 tractor and harvester engines, with lower CO2 emissions.

This would contribute to a lowering of the greenhouse gas (GHG) emissions produced by Irish agriculture.

Commenting on the announcement, FCI National Chairman Richard White said the current that there is a lack of machine renewal at farm level.

“Currently, the replacement rate of grass harvesting machinery is not in line with the demands of the Food Wise 2025 objectives.

“This can only be changed by the use of AIA’s to encourage much-needed investment as proposed by FCI,” he said.