Budget 2017 for Farmers | Farm Insurance

Budget 2017 for Farmers | Farm Insurance

There quite a few items this year which will apply although nothing to get too excited about. like most parts of the budget, it is a case of being spread very thinly.

Some of the general items include

  • €15m to continue the roll-out of the National Broadband Plan
  • €44m for flood relief schemes
  • each of the three lower Universal Social Charge (USC) rates are to reduce by 0.5%
    • 1% rate will drop to 0.5%
    • 3% will drop to 2.5%
    • 5.5% rate will drop to 5%.

The ceiling on the 2.5% rate is also to be lifted slightly under the Budget.

Agricultural Issues

We are glad to report that there are no increases in Insurance. So the government will not be taking any more money indirectly through Farm Insurance.

Low-cost Loans

  • €25m sheep scheme and an increased allocation under the GLAS scheme are new measures under Budget 2017 today
  • low-cost flexible loan fund worth €150m to improve farmers’ cash flow.

Rural Development Scheme

Increased by €107m including €25m for a new animal welfare sheep scheme. 34,000 participants are expected.

The GLAS allocation is to increase to €211m, number of participants of 50,000 participants.

Department of Agriculture investment increased by €119m for Food Wise 2020.

Increase In The Farmer’s Flat-Rate Addition From 5.2% To 5.4% with effect from January 1 2017.

Accelerated Capital Allowances For Energy Efficient Equipment

This allowance is being made available to sole traders and non-corporates.

Income Averaging Step Out

The Income Averaging scheme allows a farmer’s taxable profit to be averaged out over a five-year period.

An “opt out” in a single year of unexpectedly poor income, is being introduced for the 2016 tax year.


Farm Restructuring Relief

This remains unchanged to the end of 2019.

Capital Gains Tax And Capital Acquisitions Tax Changes

A reduction in the rate of Capital Gains Tax (CGT) to 10% under the Entrepreneur Relief Rate for the disposal in whole or in part of a business up to €1m

Owners and will be exempt from Capital Gains Tax under the Raised Bog Restoration Scheme.

Changes under the Capital Acquisitions Tax

  • The Group A lifetime tax-free threshold increased from €280,000 to €310,000
  • The Group B lifetime tax-free threshold raised from €30,150 to €32,500.
  • The Group C lifetime tax-free threshold  from €15,075 to €16,250.

Farm Assist is being increased with 500 new places available under the Rural Social Scheme.


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