Press release
McConalogue secures additional €158 million in Budget 2025 - €85 million in New Measures for Farmers
From Department of Agriculture, Food and the Marine
Published on
Last updated on
From Department of Agriculture, Food and the Marine
Published on
Last updated on
• €100 / hectare payment for all tillage and field grown food crops.
• €25 / calf additional payment under the National Beef Welfare Scheme increasing payment per calf to €75 (bringing total payment per cow & calf to €225).
• €5 / ewe additional payment under the National Sheep Welfare Scheme increasing payment per ewe to €13 (bringing total scheme payment to €25 / ewe).
• €20 / calf extra for Dairy Beef Scheme, a doubling of the payment to €40 / calf.
• €10 million in additional funding for the Organics Sector – Scheme to re-open to new applicants.
• €10 million in additional measures for Animal Health, including targeted advice for farmers, as well as IBR and BVD.
• €5 million to open the Forgotten Farmers scheme.
• €60 million for ACRES bringing scheme funding to €260m in 2025.
• Funding supporting the seafood sector, including capital and non- capital totalling €177 million.
• Fisheries schemes to support small scale coastal fishing vessels, seafood processors, aquaculture projects and young fishers.
• RZLT: Active farmers can avail of an exemption from this tax by taking an option to de-zone their land.
• Income volatility: Commitment to introduce a tax measure to protect against volatility in Budget 2026.
• Capital Acquisitions Tax: Amendment to CAT relief to ensure that agricultural relief is only available to genuine farmers.
• Category A threshold (parent to child) increased from €335,000 to €400,000.
• Stock reliefs extended to the end of 2027.
• Accelerated capital allowanced extended to a range of new farm safety items.
• €320 million capital programme, including supports for Research & Development, Forestry, TAMS and the food processing sectors.
• €2.5 million for Farm Safety.
• €10 million for Straw Incorporation Measure.
• €1.5 million for Clover and €1.25 for Multi-Species measures.
• €6 million for Soil Sampling.
Minister for Agriculture, Food and the Marine, Charlie McConalogue T.D., today announced details of his Department’s 2025 Budget. With an additional €158 million secured including a package of €85 million for new measures, the funding secured by Minister McConalogue will provide significant support to farming and coastal communities, as well as those working in these sectors in 2025.
The 2025 Estimates provide a gross vote of €2.112 billion for the Department of Agriculture, Food and the Marine. This includes a Capital Programme of €320 million, and Current Expenditure of €1.792 billion.
Referring to today’s Budget, Minister McConalogue said,
‘‘I wanted in particular to build on the significant sectoral supports I have put in place since my appointment as Minister. With that in mind, I am delivering substantially increased supports for the dairy beef, suckler, sheep and tillage sectors.
Dairy Beef:
Earlier this year, I published a 10-point plan to develop and support our growing Dairy Beef sector. To further encourage this development, I am doubling the current payment per eligible calf from €20 to €40. As my aim is to encourage greater integration of the dairy and beef sectors, the allocation of this funding will be agreed in consultation with the farm organisations in due course.
Beef
I have increased targeted supports to the beef sector in successive years through the Suckler Carbon Efficiency Programme and the National Beef Welfare Programme. Today I am increasing the payment per cow and calf from €200 this year to €225 in 2025. I will also continue to fund the National Genotyping Programme which will make a significant contribution to the development of more sustainable beef and dairy sectors.
Sheep
I am also increasing the current rate of €8 per ewe under the National Sheep Welfare Scheme by €5 to €13 per ewe. When combined with the €12 per ewe available under the CSP Sheep Improvement Scheme (SIS), sheep farmers will receive €25 per ewe in 2025. This is a 150% increase in funding from €10 to €25 since I became Minister and is by far the largest payment ever made to sheep farmers.’
Tillage
This Government has provided more support to tillage farmers than any previous Government. Today I am fully delivering on my commitment of a €100 per hectare payment for farmers that planted tillage and field grown food crops for harvest 2024 as declared on farmers 2024 Basic Income Support for Sustainability (BISS). This is in addition to the Straw Incorporation Measure which will operate as normal next year.”
Organics
Commenting on the funding being made available for organic farming, Minister McConalogue said:
“An allocation of €256 million was made for organic farming in the 2023-2027 CAP Strategic Plan. This has been extraordinarily popular with farmers, with for example, market demand for organics in the tillage sector currently outstripping supply. To match this demand a further €10 million in funding is being provided to the sector.
Minister of State with responsibility for Land Use and Biodiversity, Senator Pippa Hackett said,
“I am delighted to have secured an increased budget of €67 million for the organic farming scheme for 2025. This increase in funding will allow us to reopen the scheme to new participants in the coming weeks as we drive on towards our target of 10% of utilisable agricultural area being farmed organically by 2030. We have seen a period of tremendous growth and investment in organics in recent years, and we want to continue on that trajectory. The new National Organic Strategy sets ambitious goals for the sector out to 2030, including more than trebling the wholesale value of organic product, to €750 million by 2030.”
Animal Health Measures
Based on the successful 2022-2023 Parasite Control Targeted Advisory Service for Animal Health (TASAH) a new TASAH, focused on anti-parasitic use and biosecurity, will now be put in place. This will provide for preparatory work, and a farm visit and veterinary consultation to advise on animal diseases - at no cost to the farmer. The output will be farm specific recommendations on biosecurity measures for each of the targeted 30,000 farms visited.
Live exports are a key enabler for farmers to access the best market prices for their animals and as this trade relies on robust animal health schemes and programmes, additional funding is being dedicated to schemes that will underpin this trade. This will include support for the BVD eradication programme as we transition to BVD freedom and a national IBR programme which is a precondition for export of live animals under the new Animal Welfare and Transport rules.
Veterinary Schools
Minister McConalogue commenting on the recent veterinary school announcement said:
“Just two weeks ago, I was delighted to announce that I was taking the unprecedented step of providing funding for two new vet schools. Of the €50 million to be provided for this, my Department will be providing €25m; €5m of which is included in its estimate for 2025.”
Forgotten Farmers
Minister McConalogue also referred to the farmer group known as the ‘Forgotten Farmers’:
“I have always affirmed my commitment to resolving this issue. I am pleased that I can announce that in 2025, I will open a scheme for this group with initial funding of €5 million provided. This is a commitment under the Programme for Government, and I am delighted that I am in a position to now progress a scheme that has long been spoken about with additional budgetary provision to be made in 2026.”
Water Quality and the Environment
For farmers participating in agri-environmental actions, including through the Agri-Climate Rural Environment Scheme (ACRES), Areas of Natural Constraint scheme (ANC), Forestry and Organic Farming Schemes, €716 million is being provided in 2025.
In addition to the 2025 budget allocation, the Department of Agriculture, Food and the Marine will be administering over €1.2 billion of EU funding, including for ECO schemes and the BISS payments to farmers.
Minister McConalogue has provided an increased provision of €60million for ACRES bringing funding for the scheme in 2025 to €260m. The follows his decision to accept all 55,000 participants into the scheme:
“I secured €1.5 billion for ACRES over the duration of the Scheme, making it the best ever funded agri environment scheme. A total of €245 million has been paid to date, and advance payments in respect of scheme year 2024 will commence next month.”
“I have committed €40m in capital funding for the development of a biomethane industry. The commitment for early delivery in 2025 is €5m with the remainder to be paid in 2026.” The Minister continued.
Water quality measures
Minister McConalogue has also provided for measures to improve water quality and to support the Government’s aim of securing a renewal of Irelands Nitrates Derogation.
The Minister said
“My recently published plan to secure the Nitrates Derogation is fully funded under this budget. Farmers have made significant commitments to improving water quality, as shown during the recent visit by the European Commission's Nitrates Team to Ireland. I am supporting these efforts through capital and programme funding, with at least €61m being provided for TAMs in 2025.
In this context, further to my introduction of a dedicated 70% Nutrient Importation Storage Scheme (NISS), subject to European Commission approval, I will open a 60% grant-aided Nutrient Storage Scheme, with a separate investment ceiling of €90,000. This will allow farmers to invest in nutrient storage, under a dedicated investment ceiling, while also allowing them to invest in other measures on their holdings, up to an additional €90,000 investment ceiling.”
EIPs
In addition, this budget continues the funding committed under the €60m water EIP “Farming for Water” that I launched in March with my colleagues, Minister Hackett and Minister Noonan.
Minister Hackett and I have allocated a budget of €36 million for EIPs under the new CSP Programme. A new round of calls, to address a broad range of topics, ranging from sustainability to the use of technology in farming, will be announced in the coming weeks.”
Minister Hackett added:
“EIPs are a great way to bring farmers and other stakeholders together to develop new and innovative ways to tackle the many existing and emerging challenges faced by the agriculture sector. Our continued funding for EIPs into 2025 will allow us to deliver the financial and administrative support that make these partnerships such a success – both for farmers and for the natural environment.”
Other Sustainability measures
The Department has made a significant investment in the Soil Sampling and Analysis Programme over the last number of years, and this funding will be made available for a third phase of the programme to be launched later this year.
The Soil Sampling and Analysis Programme provides valuable information to farmers to inform decisions that promote the health of their soils. Nutrient management and soil health are central to achieving economic and environmental sustainability on farms.
To encourage farmers to continue to improve the environmental sustainability of their holdings, a fourth programme of supports, of €1.5 million for Clover and €1.25 for Multi-Species measures were secured for Budget 2025.
Knowledge Transfer
The Knowledge Transfer Scheme programme which commenced this year will continue into 2025 and 2026 with the first rounds of payment issuing in March and May 2025 to farmer and advisor participants.
Forestry
The 2025 allocation for Forestry is €91 million.
Minister McConalogue stated:
“this funding will support the forestry programme, and also provides for the Ash Dieback Reconstitution Scheme and the Ash Dieback Climate Action Performance Payment, which was approved by Cabinet on 30 April this year. This includes an additional payment of €5,000 per hectare for ash forest owners who have engaged with an ash dieback reconstitution scheme.”
Minister Hackett added:
“Having introduced a comprehensive scheme for forest owners affected by ash dieback earlier this year, we have seen real progress in afforestation licence figures in recent months. On top of these developments, the funding secured for forestry in Budget 2025 will underpin the diverse range of tree planting options on offer through our Forestry Programme 2023 - 2027. I would strongly encourage farmers to explore the many different options under the Programme – whether it’s a small-scale native woodland, agroforestry, a productive mixed forest on a continuous cover rotation or any other of our schemes, it pays to plant trees.”
Research & Development
Referring to his research and development brief, Minister Heydon said,
“I am announcing funds of €21.6 million for research and development. As the agri-food and forest sector face new challenges, ensuring access to cutting edge innovation is crucial. Projects funded by my department are already delivering results across areas like sustainable pasture management, soil and water quality, animal breeding, and feed additives. Later, this year I will be launching a consultation for a new strategy for research and development across agriculture, food, forestry and the bioeconomy, which will help guide future investment in this area.”
Farm Safety
Minister Heydon also said:
“I have secured a dedicated Farm Safety Budget of €2.5 million for 2025. I am determined to make Irish farms safer places to live and work. I am also announcing new eligible items under the Accelerated Capital Allowance for Farm Safety. This will include fixed sheep handling units, cattle crushes and races, calving gates, farmyard floodlights, livestock monitors and sliding or roller doors. This measure will support practical investments on farms and reflects the huge interest in farm safety items under TAMS 3.”
Fishing and Seafood
The fisheries and seafood sector will be supported by an increase of €7 million bringing the total budget allocation for the sector to €177 million for 2025.
This will support continued investment in our piers and harbours as well as provide investment for the seafood sector under a range of schemes including:
• The Inshore Fleet Economic Assessment Scheme with payments of between €3,500 and €5,000 to inshore fishing vessels.
• The Inshore Fisheries Scheme for small-scale coastal fishing vessels with enhanced grant intensity rates of between 80% and 100% to support both on-board and on-shore investment.
• Lobster V-notching Scheme to support fishing incomes and improve the sustainability of this fishery.
• Sustainable Fisheries Scheme providing support for on-board investment in sustainable fishing gear.
• Seafood Processing Capital Investment Scheme providing important support for capital investment in the seafood processing sector.
• Aquaculture Capital Investment Scheme providing support to aquaculture operators for capital investment.
• The Seafood Training Scheme supporting the development of skills and knowledge across the Fisheries, Aquaculture and Seafood Processing sectors.
• The Young Fishers Scheme which provides support to persons under 40 in purchasing their first vessel with grant aid of up to 40% of the cost of the vessel up to a to a maximum grant payment of €250,000.
Additional schemes in 2025 to support Producer Organisations, and to support community-led local development within 10km of the coast via the Fisheries Local Action Groups (FLAGs) as well as a seafood innovation scheme.
Agri Taxation Measures
Minister McConalogue also welcomed that the Government committed to retain key taxation measures to support the development in the sector in 2025.
These include:
• An extension of the stock reliefs for a further three years to 21 December 2027, which is so important for young farmers and those entering farm partnership arrangements, including for succession purposes;
• the capital acquisition tax agricultural relief, which is worth approximately €250 million per annum to farmers;
• accelerated capital allowances for the purchase of farm safety equipment, with an extended list of eligible investments
• Based on macro-economic data from the CSO and Revenue Commissioners, the farmers Flat Rate Compensation will increase from the current 4.8% to 5.1% from 1 January 2025.
Following consultation with stakeholders, and to ensure that relief benefits real farmers rather than speculators, a new provision requiring the disponer to retain land for at least six years before benefiting from the CAT relief, is being introduced. The Minister welcomed this measure and said that it was entirely consistent with the intention behind the relief.
The Minister also welcomed that an opportunity to avail of an exemption from the Residential Zoned land Tax (RZLT) in 2025 is being provided for landowners and farmers who carry out genuine economic activity on their land if they seek to have their land rezoned.
Referring to this exemption, Minister McConalogue said:
“It is critically important that we take measures to progress our housing policies, but this new provision addresses the legitimate concerns of genuine farmers.”
In relation to the Government’s acknowledgement of income instability in the farming sector, the Minister said:
“Considerable work has already been undertaken in relation to the introduction of an income volatility measure and I look forward to working with the Department of Finance to build on this with a view to having the necessary legislative parameters addressed in advance of Budget 2026.”
Concluding, Minister McConalogue said:
“Stripping out the exceptional Brexit Adjustment Reserve (BAR) and COVID funding, this is the biggest funding package ever delivered for the agriculture and food. I am satisfied that following intensive engagement, we have succeeded in obtaining a balanced package that will support the sustainable development of our agriculture forestry and fisheries sectors in 2026 and beyond. This is a strong message to our farmers that this Government values them and will continue to support them.“
ENDS