Budget 2027: What Farmers Need to Know
Photo: pixabay
Tánaiste Simon Harris vowed to not forget Ireland’s agricultural sector during his budget speech today (6 October), describing the industry as “critical” to the economy.
Many measures were announced by both Harris and Minister for Public Expenditure Jack Chambers, who recognised that farmers are facing pressures particularly “when it comes to fuel costs.”
One action announced by the government, includes an extension to the excise duty cuts on fuel until 28 February 2027, which was originally set to expire this November.
In addition to this, the Fuel Income Support Scheme (FISS) for farmers and agricultural contractors will also be extended until the end of this year, comprising €31.2 million in total.
Young Farmers
With Teagasc reporting that one in three farmers are over 65 years of age, the Tánaiste highlighted several measures to help the next generation of farmers establish themselves within the sector.
The government revealed that it will remove the three-year holding period for applications of succession farm partnerships and increase its associated tax credit to €10,000 from 1 January 2027 onwards.
In response, Macra president Josephine O’Neill felt that this year’s budget has “fallen short” of the mark, arguing that a pilot succession scheme should have been introduced as well.
Additional measures announced:
- A total of €2.3 billion allocated to the Department for Agriculture, Food and the Marine (DAFM) for 2027, a €39 million increase from last year;
- An allocation of €142 million for bovine TB funding;
- An extension of three years for the accelerated Wear and Tear Allowance for Farm Safety Equipment;
- A decrease in VAT rate from 23% to 9% on respiratory vaccines for livestock;
- €31 million allocated to the introduction of a Fertiliser Scheme;
- An increase in the farmer flat VAT rate addition to 4.8%, in line with the current VAT payable by farmers on livestock sold through marts;
- €22 million provided to the National Sheep Welfare Scheme next year.
