10 C
Galway
Home Farming News Budget 2021: What it means for farmers
Catherina Cunnane
Catherina Cunnanehttps://www.thatsfarming.com/
Editor and general manager of That's Farming.
Reading Time: 2 minutes

Budget 2021: What it means for farmers

- Advertisement -

Budget 2021 has been prepared against a background of extraordinary uncertainty regarding near-term economic and budgetary prospects, according to Minister for Finance, Paschal Donohoe TD.

He said it has been framed on two major assumptions underpin the budget – a no-deal Brexit and the assumed continued presence of Covid-19 in Ireland next year and the absence of a broadly available vaccine.

Key points for farmers:
  • VAT rate reduced to 21% until February 28th, 2021;
  • Self-employed Earned Income Tax Credit increased by €150 to €1,650;
  • Carbon tax to increase by €7.50 from €26-€33.50 per tonne/CO2. This increase will be applied to auto fuels from tonight and all other fuels from May 1st, 2021;
  • Increase in excise duty on pack of 20 cigarettes by 50c bringing cigarettes in “most popular price category” to €14.00;
  • Farm consolidation stamp duty relief to be extended by 2 years to December 31st, 2022;
  • Unregistered farmers’ (flat-rate farmers) flat rate addition to increase to 5.6% with effect from January 1st;
  • Allocating €1.5 billion to Department of Agriculture, Food and the Marine – an increase of €179 million on the 2020 allocation and will provide funding for the necessary control for agri-food exports and imports from Britain after the end of the Brexit transition period this year, for a new food ombudsman, for a range of new agri-environmental pilot schemes to be rolled out next year and the continuation of many agri schemes across  the sector, according to Michael McGrath TD;
  • Allocating €341 million to the Department of Rural and Community Development;
  • €79 million for pilot agri-environment/ REPS schemes and funds to roll over the existing GLAS, BDGP and sheep welfare schemes;
  • €45 million allocation for a Covid Beef scheme to improve carbon efficiency;
  • Increased funding for the Organic Farming Scheme to €16 million from €12 million.
- Advertisement -
- Advertisment -

Most Popular

Major decline in number of southern cattle moving north for slaughter

Base quotes for-in spec U-3 grade prime cattle ranged from 354- 360p/kg across plants in Northern Ireland this week, according to the Livestock and...

‘Quad bikes and scramblers are not toys’

The RSA and An Garda Síochána have launched a new public awareness campaign to highlight the dangers of quad bikes and scramblers pose to...

Stronger weanling bulls a tougher sell at Castlerea Mart

“Good” numbers of stock turned out for Castlerea Mart's online-only sale under Level 5 Covid-19 restrictions, according to Brendan Egan. Store heifers met with a...

You are not a real mart-goer if you do not…

Own a pair of dealer boots; Wear a quilted jacket; Attend mart sales weekly; Talk about cattle prices every hour of the day; ...