What’s in Budget 2021 for Dairy Farmers?

With the Government announcing a large spending package in this year’s Budget 2021, Financial Specialist Kevin Connolly joins Emma-Louise Coffey on this week’s Dairy Edge podcast to discuss the agricultural measures for dairy farmers. From an agricultural perspective, Kevin explains it is a neutral budget. There is a top up in income from milk sales on dairy farms resulting in an increase in VAT on milk sales from 5.4% to 5.6%. Some other positives for farmers include the continuation of tax reliefs including consanguinity (stamp duty), farm consolidation, capital gains and capital acquisition as well as stock relief. Additionally, the TAMS grant has been extended which will support continued investment in farm buildings and farming equipment. There was though an increase in carbon tax which has led to an increase in the cost of fuel and vehicle tax on farms. Finally, there is a contingency/recovery fund created to assist the Irish economy resulting from a no-deal Brexit and/or a continued Covid-19 challenge. For more episodes from the Dairy Edge podcast visit the show page at: https://www.teagasc.ie/animals/dairy/the-dairy-edge-podcast/