THERE was a mixed reaction from farmers groups to Budget 2027 with some measures welcome while other felt more could be done to assist farmers.
Macra expressed disappointment that €22m has been allocated towards the hosting of the Ryder Cup in Ireland next year, while the organisations’s proposed €5m pilot succession scheme gets left in the rough.
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They said the contrast in funding priorities raises serious questions about the level of investment being made in the future of Irish farming.
“The Ryder Cup will come and go but the decisions we make now on generational renewal will shape agriculture for decades to come. We are also deeply concerned that agriculture’s share of the overall budget has fallen to a new low of just 1.85%,” said Macra President Josephine O’Neill.
“Agriculture is fundamental to our economy, our food security and the vitality of rural Ireland, yet it share of Government investment continues to shrink. Young farmers cannot be expected to build the future of Irish agriculture on crumbs from the budget table.”
Ms O’Neill welcomes the increase in the Succession Farm Partnership tax credit and the removal of the three-year land transfer rule.
“These are positive measures, but they are simply not enough. We need direct investment if we are serious about getting the next generation onto the land and into wellies.”
Other welcome measures for farmers in this Budgets include the extension of the Fuel Income Support Scheme, the full co-funding of the Fertiliser Top-Up, fuel excise cuts extended to the end of February and increased TAMS allocation.
IFA President Francie Gorman said Budget 2027 contains a number of measures consistent with their asks to support farmers to deal with escalating costs but the costs of doing business continues to escalate at farm level and more will need to be done to address this.
“The Budget has remains broadly similar to 2026 at €2.3bn which is disappointing in the context of a 6% increase in overall spending. On the expenditure side, there is an increase in funding for some schemes but our concern is that there may not be enough to avoid linear cuts to individual farmer payments particularly in our most vulnerable sectors. We will be taking this up with the Minister for Agriculture as any cuts must be avoided,” said Mr Gorman.
“Our view is that the carbon tax should be removed and Tuesday’s announcement is a recognition that it is an issue for rural Ireland in particular. We had also looked for those farmers impacted by a TB breakdown to be properly compensation for the losses incurred. The increase in the valuation ceilings by €500 per animals will address the situation to some extent.”
IFA Farm Business chair Bill O’Keeffe said overall the Budgets will see modest improvements in what people have in their pockets, with income tax cuts helping farm households that are struggling to cope with rising bills.
ICSA Rural Development chair Edmond Phelan said Budget 2020 contains some welcome measures for farmers but the lack of any increase in the overall allocation to the Department of Agriculture raises serious questions about whether the Government is doing enough to support farm viability.
“Farmers are currently trying to cope with extremely high costs and many are struggling to make the numbers add up. Against this background, it is difficult to see how the Government can deliver the level of support farmers needs when there is no increase in the overall allocation to the Department of Agriculture,” he said.
Mr Phelan said the Budget provides some short-term relief on fuel costs but does not go far enough to tackle rising fuel costs.
“Fuel costs have become one of the biggest pressures facing farmer and we need to see a proper response to the cost of agricultural fuel. The extension of the Fuel Income Support Scheme will provide some breathing space for farmers facing very high fuel costs.”
He added that farmers need more than temporary relief.
“Fuel has gone from being a manageable part of the cost of running a farm to becoming a major and increasingly damaging cost. The reduced excise rates will now remain in place until the end of February which is welcome, while the suspension of further carbon tax increases is also welcome. However, the phased restoration of excise from March to June next year means that farmers will continue to face rising fuel costs. We need a lasting solution that gives farmers greater certainty over what it will cost to run their farms.
