The Irish Farmers’ Association (IFA) has said that it has received confirmation that the slurry storage scheme in Budget 2023 will be available for three years.
The time-limited scheme for accelerated capital allowance for the construction of modern slurry storage facilities was announced by then Minister for Finance Paschal Donohoe in September.
Farmers can claim on 50% of the expenditure over a two-year period, a shorter time scale than capital allowance is typically available for, but at a higher rate than usual.
IFA
IFA Farm Business chair Rose Mary McDonagh has today (Thursday, January 19) said that the Department of Agriculture, Food and the Marine (DAFM) confirmed that the measure will be available to farmers for three years.
She said that this was also outlined in the tax policy changes document published by the Department of Finance following the unveiling of Budget 2023.
The IFA chair added that the cost of the facilities could be written off over two years, rather than the seven-year period that previously applied for such capital expenditure.
“It’s understood that the eligible period for these measures was initially set for six months – to June 2023 – in the Finance Bill due to the EU Agricultural Block Exemption Regulations (ABER) requiring updating as happens with many taxation measures related to agriculture.
“Subsequent to the publication of the Finance Bill, in November last, IFA received confirmation from the department of agriculture (food and the marine) that once the ABER is approved, the Department of Finance will put the appropriate legislation in place to extend this measure beyond June 30 next, as intended,” McDonagh said.
Slurry storage
Meanwhile, farmers were informed at a recent event that collecting yards are the only exemption in terms of the requirement to cover (roof) slurry storage on farms under the capital accelerated allowance scheme announced in Budget 2023.
The event titled ‘Future proofing farmyards’ took place last Friday (January 13) in Co. Tipperary where up to 80 farmers gathered.
Teagasc specialist Patrick Gowing said that “within the literature, slurry storage has to be covered”.
“If you want to get accelerated capital write down on a slurry tank it has to be covered.
“So basically you can’t have any open slatted tanks except in one instance. If you are building a tank for a collecting yard, it doesn’t have to be covered.
“Also, if you are putting in an overground tower it has to be covered,” Gowing said.