The Irish Natura and Hill Farmers' Association (INHFA) has outlined its proposals for Budget 2027.

In its submission, the INHFA said looking ahead, there is concern that for suckler and sheep farmers, "we could see a further reduction in prices".

"This, coupled with ever-increasing costs, will be a major concern for farmers as we move into 2027.

"On this basis, it is our view that direct supports and targeted tax interventions will be critical," the association said.

Payment for designations

The INHFA said there is "growing anxiety" in the farming community about the potential impact of the Nature Restoration Law (NRL).

The INHFA has proposed the immediate establishment of a ringfenced fund, for all private landowners with designated lands and lands that will be subject to the NRL, to deliver:

A payment of €300/ha for every hectare impacted through designations or the NRL;
A fund to compensate landowners who are selling designated lands.

The INHFA said in total, an annual budget allocation of €500 million is needed.

ACRES

The INHFA said for farmers in the Agri-Climate Rural Environment Scheme Co-operation approach, the rejection rate for proposed actions under the Non-Productive Investments has been "very high".

"This, along with the slow rollout of the Landscape Actions available to farmers in advance of the scoring of habitats last summer, didn’t just undermine confidence but also affected their habitat scores and overall payments," the INHFA said.

"On this basis, we are seeking a bonus payment of €2,000 for all farmers with a high habitat score that averages six or above."

In addition to this, the INHFA said there is a "very strong case to ensure that all lands are paid on".

Suckler and sheep

The INHFA said it is seeking suckler support that pays up to €200/cow for the delivery of specific welfare measures, with access not dependent on Bord Bia membership.

In this scheme, the INHFA is targeting payment for up to 20 cows, with a front-loaded payment for the first 10 cows.

The INHFA proposed that payment under the National Sheep Welfare Scheme be increased to €15/ewe.

It is also seeking an increase to €15/ewe under the Sheep Improvement Scheme.

Retirement

The INHFA proposed that a tax-free annual allowance of €5,000 be made available to older farmers who engage in casual labour, which it said would assist with the running of the farm and facilitate knowledge transfer to younger farmers.

It has called for government to commit to establishing a farm retirement scheme, to be available to farmers from the age of 60 and remain available for 15 years, or until a maximum age of 75.

The INHFA recommended the scheme commence with a payment rate of €350 per week and increase in line with inflation.

Taxation

The INHFA proposed that the current fuel support package, announced in April, should remain in effect until the end of the year.

It said that from January 1, all carbon tax on all fuels should be suspended pending a full review, and from the same date whenthe fuel price reaches a specific threshold, that VAT should not be applied to the excess.

"For petrol and white diesel, the price we recommend is €1.60/L, while for green diesel, we are recommending a price of €1.15/L," the association said.

The INHFA also outlined that to qualify for Agricultural Relief, the value of the agricultural property must comprise at least 80% of the total value of the beneficiary’s assets at the time of the gift/inheritance.

The INHFA has sought for the threshold to be reduced on this from80% to 60%.