ICSA President Patrick Kent has told the Oireachtas Committee on Agriculture, Food and the Marine that there is an urgent need to make farm partnerships as tax efficient as long term leases for farmers over 40 years old.
“Farmers in the drystock sector are looking at all options as they grow tired of making no money from cattle and sheep. Many larger drystock farmers have huge potential for partnering with a young farmer but the current tax exemption for long-term leasing is not available where an older farmer proposes to lease to a company or to a partner,” said Mr. Kent.
“This needs to be re-examined because a partnership structure will only work if it provides a worthwhile after-tax income for both parties, which reflects the huge change in mind-set and investment that partnership entails.”
ICSA also outlined how high income taxes and capital taxes are a disincentive to hard work and enterprise. Moreover, the risk of high capital taxes has increased as a result of decisions taken in recent budgets and this is potentially undermining the next generation of young farmers who might be considering taking over the family farm.