The ICMSA has called for the introduction of a farm income volatility tool into the Irish tax code.
In its submission on Budget 2025, the association claims that the adoption of what it terms a climate and volatility mitigation measure, would assist farmers deal with income variations in a year like 2023 and 2024, where output prices are falling after record highs in preceding years.
Under this system, farmers would be allowed to deposit a set proportion of their income in years in which profits are made into a specified deposit account. Tax would be paid on these funds in a future year, when the farmer opts to utilise the deposits.
This mechanism would help address income volatility and complement other risk management strategies available to farmers, such as income averaging, the ICMSA argued.
The ICMSA has also called for 70% grant aid for the construction of additional slurry storage between now and 2027.
It claims the measure should be open to all farmers, with or without current slurry storage requirements.
The ICMSA is also calling for the reintroduction of the Dairy Beef Welfare Scheme, whereby farmers would get paid for rearing calves.
The association is proposing a payment of €100/head for weighing before six months, and an additional payment at 18 months of €100/head.
Other proposals in the submission include:
Reference costs under TAMS to be updated to reflect increased construction costs. And that up to 70% of the differential between the reference costs and actual costs should be covered for works currently being carried out.A reduction in the 33% rate of Capital Acquisitions Tax to 25%.The introduction of inflation increases to personal taxation bands.A reduction to the Universal Social Charge. To allow income averaging for farmer spouses/partners in an existing farming structure.
The ICMSA has called for the introduction of a farm income volatility tool into the Irish tax code.
In its submission on Budget 2025, the association claims that the adoption of what it terms a climate and volatility mitigation measure, would assist farmers deal with income variations in a year like 2023 and 2024, where output prices are falling after record highs in preceding years.
Under this system, farmers would be allowed to deposit a set proportion of their income in years in which profits are made into a specified deposit account. Tax would be paid on these funds in a future year, when the farmer opts to utilise the deposits.
This mechanism would help address income volatility and complement other risk management strategies available to farmers, such as income averaging, the ICMSA argued.
The ICMSA has also called for 70% grant aid for the construction of additional slurry storage between now and 2027.
It claims the measure should be open to all farmers, with or without current slurry storage requirements.
The ICMSA is also calling for the reintroduction of the Dairy Beef Welfare Scheme, whereby farmers would get paid for rearing calves.
The association is proposing a payment of €100/head for weighing before six months, and an additional payment at 18 months of €100/head.
Other proposals in the submission include:
Reference costs under TAMS to be updated to reflect increased construction costs. And that up to 70% of the differential between the reference costs and actual costs should be covered for works currently being carried out.A reduction in the 33% rate of Capital Acquisitions Tax to 25%.The introduction of inflation increases to personal taxation bands.A reduction to the Universal Social Charge. To allow income averaging for farmer spouses/partners in an existing farming structure.
SHARING OPTIONS: