Dáil Éireann Debate, Tuesday - 14 October 2025
147. Deputy Colm Burke asked the Minister for Agriculture, Food and the Marine the progress made to date in relation to examining a new farm income volatility taxation measure to safeguard farmers from markets rising and falling, as per the Programme for Government; and if he will make a statement on the matter. [54721/25]
Amharc ar fhreagraI am fully aware of the volatile nature of farm income. Irish agricultural output prices and input costs are sensitive to geopolitical and global economic factors, as well as more localised factors such as weather conditions. This can lead to significant variations in income from year to year. There are currently a number of measures, both through the €9.8 billion CAP Strategic Plan and nationally funded, designed to reduce risk and respond to market crises. One of the most effective tools in addressing volatility is the certainty provided by direct payments under CAP.
While taxation policy is primarily the responsibility of my colleague the Minister of Finance, I work closely with him on taxation issues relating to the agri-food sector. Following last year’s budget, both Departments engaged on this issue, and the Department of Finance produced an analysis for the Tax Strategy Group, which has been published (at [Budget 2026 Tax Strategy Group papers]). The analysis concluded that the introduction of an income volatility measure is not recommended on the grounds of cost, tax equity, tax administration, regulatory issues, and equality.
I am open to discussing further with stakeholders measures in relation to managing income volatility.
