The Irish Natura and Hill Farmers’ Association (INHFA) is seeking a tax exemption for all payments farmers receive under various environmental schemes.

The organisation has outlined the recommendation in its pre-budget submission.

In pressing the case for these exemptions, INHFA president Vincent Roddy called “for all payments made to farmers under schemes such as ACRES [Agri-Climate Rural Environment Scheme] and the new eco-scheme to be disregarded for tax purposes”.

Roddy added that in order to deliver improved environmental outcomes “we must recognise that there is a direct financial cost in delivering this and also a cost in terms of reduced output and income”.

The farm organisation said that costs and income loss such as these are “already a consideration in forestry premium which is tax free”.

Environmental scheme payments

Roddy continued: “Beyond forestry, we must also recognise how tax free allowances are also a factor in other emergency situations such as the housing crisis where we see a tax-free allowance on rental income of up to €14,000/year.

“In May 2019 Dáil Eireann declared a climate and biodiversity emergency. With this declaration came promises of funding to help deliver the desired outcomes.

“Unfortunately, some four years on, we see an under-funded agri-environment scheme in ACRES and a redirection of direct supports, to deliver improved environmental ambition through the eco-scheme,” the INHFA president added.

The organisation has said that it is “essential” that additional funding is prioritised to support and recognise the costs and burden associated with environmental measures.

Designations

The INHFA is also seeking an annual payment of €300/ha in recognition of what is describes as the financial burden associated with the Special Areas of Conservation (SAC) and Special Protection Areas (SPA) land designations.

“However, in providing a tax disregard for both ACRES and the eco-scheme payments, we can further reward the environmental ambition of our farmers,” Roddy added.

The INHFA is urging the minister to consider the proposal and has stressed the need to ensure “a full disregard for income received from these two schemes for farmers availing of Farm Assist”.