Budget 2026 has seen the extension of the slurry storage capital allowance as well as key tax reliefs for farmers.

Minister for Finance Paschal Donohoe said in the Dáil this afternoon (Tuesday, October 7): "Domestic and foreign investment are key to our economic growth. So too is the success of our farming sector.

"I want to acknowledge the report of the Commission on Generational Renewal in Farming. This report looks at farm succession in particular and makes a series of recommendations, including the extension of the four tax relief schemes that are specific to this sector, which are due to end this year," the minister added.

Minister Donohoe outlined: "I have considered this matter and have decided to extend the Farm Consolidation (Stamp Duty) relief, Farm Restructuring (CGT) relief and the Young Trained Farmer (Stamp Duty) relief to the end of 2029."

The minister also said that the scope of Farm Restructuring Relief would be extended to include woodlands and forestry.

On the capital allowance for slurry storage, the finance minister said: "In addition, in order to continue to help farmers to meet emission targets, and to address our shared environmental challenges, I am announcing an extension of the accelerated capital allowance scheme for slurry storage facilities for four more years."

However, Budget 2026 has seen a reduction in the Farmer's Flat Rate Payment under Value Added Tax (VAT).

The Farmer’s Flat Rate Payment compensates farmers who opt not to register for the VAT incurred on their purchases.

It is revised every budget and is derived from a calculated average of VAT costs based on macroeconomic data collected from the Central Statistics Office (CSO) and Revenue over the preceding three years.

The rate for 2026 will be 4.5%, compared to 5.1% in 2025.

Two of the reliefs mentioned by the minister are available for farmers under Stamp Duty.

For Farm Consolidation relief, the claimant must be a farmer who is an individual who spends 50% or more of their normal working time farming.

If you are purchasing as a joint owner, only one of you must be a farmer.

The claimant must sell land and buy other land to consolidate your holding within 24 months; and have a consolidation certificate issued by Teagasc.

You must also intend to retain ownership of the land and use the land for farming for a period of at least five years from the date you claim the relief.

Under this relief, you pay Stamp Duty on the difference between the price for which you sold land and the price for which you bought other land.

Under Young Trained Farmer relief, the claimant of the relief must be under 35 years of age at the date the transfer of land was executed;hold a relevant agricultural qualification or obtain one within three years from the date the land is acquired; have submitted a business plan to Teagasc; be registered for Income Tax; and be the head of the farm holding.

The claimant must also intend to spend at least 50% of their normal working time farming the transferred land and retain ownership of that land for a period of at least five years from the date of transfer.

The young trained farmer relief is a type of EU State Aid, therefore restrictions apply to the amount of relief that may be claimed.

Under Capital Gains Tax (CGT), you may claim farm restructuring relief from CGT if you dispose of farmland for farm restructuring purposes.

The purpose of farm restructuring is to make the farm more efficient (improve the operation and viability of the farm). Farmers can do this by selling and purchasing, or exchanging, farmland to bring the land closer together.

The relief provides full relief from CGT when the purchase price exceeds the sales price or partial relief on CGT when the purchase price is lower than the sale price.

Relief is given in proportion to the amount of the sale proceeds reinvested in purchasing new farmland.

To qualify for the relief, you must have a Farm Restructuring Certificate issued by Teagasc. This certificate confirms that you carried out the transaction for farm restructuring purposes.

Relief is given at the time of: the sale of the land, if the purchase takes place before the sale; or at the time of exchange, where land is exchanged simultaneously.