Martin Kenny
Question:353. Deputy Martin Kenny asked the Tánaiste and Minister for Finance the amount of revenue collected from taxing farmers on income from agri-environmental schemes. [16910/26]
View answerTuesday, 3 March 2026
Questions (353)
Written answers
Generally, income from agri-environmental schemes will be classed as subsidies or grants. Subsidies and grants received by farmers in respect of their farming trading activities are taxable under the general rules applicable to the taxation of government grants.
Grants which are revenue in nature, such as agri-environmental schemes, are generally taken into account in calculating amounts liable to income tax. A payment which increases a farmer’s income, or reduces the farmer's revenue expenditure, is generally of a revenue nature and should be taken into account in computing the amount of the farmer’s taxable trading profits. For example, the Agri-Climate Rural Environment Scheme, which is the main farming scheme aimed at improving biodiversity, water quality, and carbon storage on farmland, is regarded as revenue in nature and will be taken into account in computing the amount of farming trade income which, after deduction of costs incurred wholly and exclusively for the purposes of the farming trade, is chargeable to income tax. Where the farming trading activities are undertaken within a company and the subsidy or grant is received by the company, the income will be chargeable to corporation tax.
I have been advised by Revenue that because income from agri-environmental schemes forms part of the normal trading income and taxable profits of farmers, the amount of tax revenue collected from the taxation of income from agri-environment schemes is not separately identifiable.