Agriculture Related Budget Measures
Accelerated Capital Allowances for construction of Slurry Storage Facilities
Targeted at the construction of slurry storage facilities allowing 50% of the eligible expenditure to be claimed over two years (rather than the normal 7 year claim period). This scheme will be available for three years.
Note in relation to construction costs a new Defective Concrete Products Levy (Mica Levy) is to be introduced from 3rd April 2023. The levy will be set at a rate of 10% of the cost of the concrete product, ex VAT. This levy will apply to pouring concrete as well as concrete products used in the construction of buildings.
Acceleration of Wear and Tear Allowances for Farm Safety Equipment Scheme
This measure was included in Finance Act 2020 but the commencement order for the measure was signed on 6th October, 2021. This scheme allows for accelerated capital allowances of 50% per annum over two years for certain eligible equipment—see summary list below An annual total equipment cost of €5 million per annum., excluding VAT, for the measure will apply.
The Department of Agriculture, Food and the Marine will issue a Farm Safety/Adaptation Accelerated Capital Allowance Certificate. This certificate must be submitted to Revenue in support of claims under this measure.
Measures announced by Department of Agriculture, Food and the Marine
The Department of Agriculture, Food and the Marine has been allocated €2.1 billion—a €283 million increase on the 2022 allocation.
Below are some details announced on budget day:
- Agri Environment scheme funding for ACRES - funding of €200 million to cover 30,000 farming participants
- Locally Led Environmental Schemes - €18 million to fund a large-scale water scheme on farms and to fund a new call for new EIPs on biodiversity, climate, rural environment and farm safety
- National Forestry Programme—€112 million in funding
- Targeted supports for the beef and sheep sectors - €100 million to cover new beef welfare scheme (replacement for BEEP-S), Suckler Carbon Efficiency Scheme and Sheep Welfare Scheme
- TAMS - €90 million including specific supports for solar panel installation including a 60% grant rate and a €90,000 ceiling on investment. Farm dwellings will now be eligible for inclusion for solar panel investments.
- Tillage Incentive Scheme—€10m in supports to encourage maintenance and new planting in the Tillage Sector.
- Organic Farming Scheme - €37 million (up from €21 million last year)
- Multi-Species / Red Clover Swards—grant to support the planting of these swards
- Liming Scheme—funding of €8 million
- Pilot anaerobic digestion investment - €3 million
- Farm Safety - budget of €2.5 million to support initiatives
- Soil Sampling Scheme & Farm Environmental Scheme —continued funding of €13.3 million
- €335 million for fisheries and coastal communities that depend on fishing