Press Room

Mr Colm Markey, Macra na Feirme's national president, has said that farmers should be aware of the tax relief available on rental income from land leased out on a long-term basis by individuals who are over 40 years of age.

Macra na Feirme recently secured exemptions for individuals leasing out their land on a long-term basis from EUR7,500 to EUR 12,000 for leases between five and seven years, and from EUR 10,000 to EUR15,000 for leases of more than seven years.

Mr Markey pointed out that under the new decoupled regime, farmers can rent out their Single Farm Payment entitlements with land, which increases the overall rental value. He also said that the recent changes in the tax exemption secured by Macra provide for the inclusion of the Single Farm Payment element for tax relief purposes.

'The extension of this relief should encourage individuals to let their lands to young farmers on a long-term basis and will increase the supply of land available for long-term leasing to young trained farmers,' said Mr Markey.

'This enhanced relief will make it attractive for farmers winding down their farming enterprise to long-term lease one of the most critical factors of production to progressive young farmers. In the current climate the only economic expansion route open to most young farmers is to long-term rent land. Purchasing land is not an affordable option for many young farmers,' said Mr Markey.

'Up to now a lot of farmers have leased their land on conacre (ie one year lease), making it extremely difficult for young farmers to plan and expand their holdings. This relief, which is available from the 1st January 2006, should increase the supply of land available for long term leasing,' said Mr Markey.

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