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Catherina Cunnane
Catherina Cunnane
Catherina Cunnane hails from a sixth-generation drystock and specialised pedigree suckler enterprise in Co. Mayo. She currently holds the positions of editor and general manager at That's Farming, having joined the firm during its start-up phase in 2015.
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Anger as DAFM’s €49m from carbon tax money deferred in Budget

IFA reacts to Budget 2022

The IFA has voiced its views following the announcement of Budget 2022 earlier today (Tuesday, October 12th, 2021).

Its leader, Tim Cullinan, said the government has reneged on its commitment to allocate a portion of the €1.5bn carbon tax money to agriculture in today’s budget.

Speaking earlier this afternoon, he said:

“It’s extraordinary that the government has told us that €49m in funding ‘that the Department of Agriculture, Food and the Marine would otherwise expect to receive in 2022 from carbon tax receipts’ has been allocated to the Department of Social Protection.”

He said the Programme for Government states funding would be used for environmental and climate measures for farming.

“This has not happened, and it will further rock farmer confidence in the Programme for Government commitment on the allocation of the carbon tax, which is also costing farmers a lot of money.”

“Overall, the budget is an underwhelming one for farmers,” he added.

Farm schemes and low-cost finance initiative

Cullinan said the rollover funding for farm schemes and the extension of tax reliefs are important for farmers, as is the new low-cost finance initiative.

Chair of IFA’s farm business committee, Rose Mary McDonagh, said: “It’s important to see stamp duty and stock relief measures extended.”

“These will encourage farm transfer and generational renewal.”

However, she said that reducing the farmer flat rate VAT refund from 5.6% to 5.5% was “a sting in the tail”. She said it would cost farmers €7m/year.

She welcomed the low-cost finance scheme, which she said would be “very important” given the scale of investment farms require.

IFA rural development vice-chairman Denis Tuohy said, “It’s positive to see an allocation for the rollover of farm schemes, including GLAS, ANC, TAMS, suckler cow (BDGP & BEEP-S), sheep welfare, and organics.”

“While the renewal of these schemes is important for 2022, the schemes and the level of co-financing will need to be significantly enhanced in the CAP National Strategic Plans for 2023-2027.”

“This must be separate from, and in addition to, govt funding of €1.5bn from carbon tax receipts for environmental measures.”

Concluding, Cullinan said that there were other aspects of the Budget that need further examination.

“The new Zoned Land Tax must exclude farmed land and the support for multi-species swards needed to be fleshed out.”

Read what the IFA called for its in pre-Budget 2022 submission.

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