The Irish Farmers’ Association (IFA) has said that the provision of a scheme in Budget 2023 to follow on from the Beef Environmental Efficiency Programme – Sucklers (BEEP-S) is important, but described the financial support as being “too low”.
President of the association, Tim Cullinan has said Budget 2023 contains some of the targeted measures that the IFA had lobbied for to address the challenges facing the sector, and acknowledged the rollover of the Fodder Support and Tillage Incentive Schemes.
However, he said that the allocation for a scheme similar to BEEP-S was “too low and it would leave support for suckler farmers well below what was needed”.
BEEP-S and rising costs
“The fodder, tillage and suckler schemes won’t be enough to mitigate the 40% increase in farm inputs, particularly for the low-income beef and sheep sectors,” Cullinan said.
He acknowledged the introduction of an energy scheme to support farmers who will be facing very significant bills over the winter months.
“IFA raised this issue when it became apparent that farmers were to be excluded [from the energy support scheme],” Cullinan continued.
“It would have been a serious omission if farmers could not avail of supports to deal with rising energy costs. We are waiting to see the full detail on how the scheme will be operated.”
Other Budget 2023 funding
The IFA president said Brexit Adjustment Reserve (BAR) funding of €238 million for the farming sector could be significant, but added that the association still needs to see the proposed breakdown of the funds.
On climate measures, Tim Cullinan acknowledged the liming and multi-species swards schemes and the accelerated capital allowances for slurry storage.
“While these schemes are worthwhile, they fall a long way short of what will be needed to help farmers meet their climate targets,” he said.
“The 10% concrete levy will undermine these initiatives and means that TAMS [Targeted Agricultural Modernisation Scheme] costings will have to be revised.”
For the new Agri Climate Rural Environment Scheme (ACRES), IFA Rural Development chair, Michael Biggins said he would be concerned that the funding will not allow all potential applicants into the scheme.
“The government [has] been trumpeting this new ‘flagship’ ACRES environment scheme, but the reality is that not every farmer who is currently in an environment scheme can be included in the new scheme based on the allocation made today,” he said.
Agricultural land
IFA Farm Business Committee chair, Rose Mary McDonagh, meanwhile, welcomed the extension of the various agricultural reliefs, but expressed concern about the finance minister’s comments about the Zoned Residential Land Tax.
“There is increasing concerning about how this tax will impact on farmers. Farm land should be excluded from the scope of the tax,” she said.
McDonagh said the reduction in the flat rate VAT refund to 5% was a significant adjustment that would impact farmers by €46 million.