€100/ha tillage payment to be made in early 2025

Minister for Agriculture, Food and the Marine, Charlie McConalogue has confirmed that the €100/ha support payment for the tillage sector will be made early next year.

A total of €30 million for a new tillage scheme supporting farmers to plant their field crops was announced by government in Budget 2025 yesterday (Tuesday, October 1).

The payment will be based on this year's area aid, he said. Earlier this year, the minister committed to a €30 million support fund for the tillage sector in 2024 at his party’s Fianna Fáil Ard Fheis.

Higher scheme payments announced in Budget 2025 for the dairy-beef, beef, and sheep sectors will also be available to farmers once the schemes reopen next year, Minister McConalogue confirmed.

Minister McConalogue also confirmed to Agriland that he plans to open a €5 million scheme for the group known as the ‘forgotten farmers’ for applications next year, with further details to be announced "in the coming period".

However, the minister said "significant additional funding" in the next budget will be needed to support the estimated 3,500 farmers who lost out on vital supports due to cuts in public expenditure by the government following the last recession.

Minister McConalogue speaking at the post-Budget 2025 press conference today
Minister McConalogue speaking at the post-Budget 2025 press conference today

Speaking at the post-Budget 2025 press conference, Minister McConalogue also commented on the income volatility measure to support the farming sector announced by Minister for Finance, Jack Chambers yesterday.

Minister Chambers acknowledged that "there can be income instability in the farming sector in general, and the dairy sector more specifically", and announced an income volatility measure for consideration in next year's budget.

While "a lot of work" has been undertaken over the last few months in relation to its scope and structure, Minister McConalogue said due to its "complexity" in terms of the relationship between different legislation, the measure will only be considered next year.

"There is no doubt that income stability has been a key challenge, and that is why as a government we have given a very clear commitment on budget day that this was something we are committed to stepping forward," he said.

Budget 2025 also saw the introduction of a new provision requiring the disponer to retain land for at least six years before benefiting from the Capital Acquisitions Tax (CAT) relief to ensure that relief benefits real farmers rather than speculators.

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This change will require individuals to own farmland for at least six years and actively farm the land before it can be passed on to the next generation and avail of agricultural reliefs. Minister McConalogue described the change as "very significant".

"The objective behind that is to ensure it is not utilised by those who want to manage their wealth, that it is actually targeted at young farmers and family farms to make sure that it serves the purpose we want to see," he said.

"I want to ensure that we don't have high-rollers coming in and buying up land at the cost of local farmers and local, young farmers who want to build a farming enterprise," the minister said and indicated that eligibility criteria could be tightened further in future.

Minister McConalogue said there is now a twelve-year period in which farmland must be actively farmed by the person who owns the land, as well as the person who receives it before agricultural relief can be availed of.

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