FARMERS are facing “very hard choices” down the line as tax bills from 2025 start arriving, warned Pat O’Brien, chairperson of the ICMSA’s Farm Business Committee

Mr O’Brien said this will occur at a time when calculations are being done frantically on how to ensure that their animals will have enough fodder for the coming winter.

He said that Revenue will have to understand that it’s not a case of farmers trying to avoid their liability but rather that they simple don’t have the money to do both: pay their 2025 tax bill and buy the fodder that will be necessary to get their herds through the winter after a summer of unprecedented low grass growth.

“In the continuing absence of an Income Volatility Scheme that could precisely deal with this situation, there has to be a greater level of understanding from Revenue in relation to tax payments,’ said Mr O’Brien.

“Farmers also need clear guidance on the different options  available to manage their 2025 tax liabilities. Phased Payment Arrangements are an option but they come with an interest charge. That is simply unfair and penal. People only enter these arrangements because they have to preserve enough cashflow to keep their businesses operating. Penalising them with interest on top of that is unreasonable and just puts people trying to the right thing in a ‘deeper hole.’ It’s hardly the farmer’s fault that weak milk and beef prices have wiped out the cash that was generated
last year.’

Mr O’Brien added that many farmers have already used last year’ income just to keep their farms viable through 2026, yet they are now expected to pay tax retrospectively on profits that no longer exist in their
bank accounts.

“ICMSA believes Revenue has to be fair to farmers in these circumstances. The interest charge on Phased Payment Arrangement for farmers should be removed immediately. There should also be a clear, written commitment from Revenue outlining their practical supports to farmers who are genuinely struggling to meet their tax obligations.”

He added that for some farms the choice is stark – having enough money to buy fodder and keep livestock fed or keeping the taxman happy.

“That’s the reality of it and we want Revenue to work constructively with the sector rather than adding financial pressure at an already difficult and very fraught time.”

ICMSA is advising any farmer who is concerned about meeting their tax obligations to engage early with their accountant, tax adviser or other suitably qualified professional to discuss the options available.