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Farming
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FDC GROUP
In this issue:
General Manager’s Introduction.
The recently published Teagasc
National Farm Survey 2013
revealed starkly contrasting
fortunes across the agricultural
sector. Low factory prices
and severe fodder shortages
contributed to an average
decline in income amongst
beef producers. Sheep farmers’
income fell by 39% while
average income on tillage farms
declined by 20%. Farmers in
these sectors are increasingly
reliant on subsidies and offfarm income to remain solvent.
02General manager’s
introduction
Jack MURPHY
03Greening and the
Direct Payment
Scheme 2015-2019
Denis Fitzgerald
B.Agr.Sc.
06Green Low-
Carbon Agri –
Environmental
Scheme
TED HORGAN
10Agricultural Relief
Michael Fitzgerald, AITI
Chartered Tax Adviser
13 KEY AGRICULTURAL
COMMODITY GRAPHS
The redistribution of EU farm payments in coming years is set
to address many of the regional and sectoral variations in Irish
agriculture. Compliance with the terms of the ‘Greening’ component
of the 2015 - 2019 entitlements round will be an increasingly
important factor in farm finances. This edition of our newsletter
details keys elements of the new regime.
The Dairy sector, according to the Teagasc survey, recorded a 31% rise
in average incomes. This strong performance is, of course, predicated
on high milk prices. Future milk price volatility is a certainty as
evidenced by the criteria being applied by the banks to loan
applications for conversion to or expansion of Dairy operations. Strict
repayment capacity tests routinely involve discounting projected
income from milk as well as land values by as much as 30%.
Increasingly, there is a requirement to demonstrate cost-efficiency as
part of herd expansion proposals. The taxation implications for those
who have maximised their allowances during expansion also require
careful assessment.
Irrespective of your farm profile it is imperative that you avail of the
expertise of FDC Group to secure and manage the financial viability
of your farm. Our range of support services and experience are now
so comprehensive as to meet the needs of all clients.
Jack Murphy – General Manager.
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Greening and the Direct Payment Scheme 2015-2019
Denis Fitzgerald B.Agr.Sc. Ag. Consultant, FDC Cahir
Background
From 2005 to 2014 inclusive, eligible farmers
claimed their EU payments by submitting a Single
Payment Scheme (SPS) application and observing
the relevant requirements of Cross Compliance and
GAEC (Good Agricultural & Environmental Condition). For every SPS entitlement the farmer owned
or leased, he/she had to have at least one hectare
of land that was in either grassland, tillage or (since
2009) newly planted forestry. The value of entitlements varied greatly throughout the country ranging from practically nil to upwards of €1,000 per
entitlement. There were also many other farmers
who had no entitlements at all.
A similar principle will apply to the forthcoming Basic
Payment Scheme, which is due to run from 2015 to
2019 inclusive. However, the broad range of entitlement values is set to be narrowed (or ‘converged’) significantly and instead of there being just one element
to the payment unit, i.e. the entitlement, there will be
several elements, some of which will be compulsory
and some of which will require eligibility.
Direct Payments 2015-2019
BPS Entitlements
Young Farmers
Greening
Protein Support
The two largest elements, the BPS and Greening will be
compulsory and the other two elements, Young Farmers and Protein Support will be based on eligibility.
What is Greening?
In addition to the measures currently in place governing waste storage, traceability, fertiliser application,
pesticide usage etc, targets have also been set that
focus on ecology and biodiversity. It would appear
that this is something that the EU Commission sought
in the CAP negotiations and were insistent on implementation. A fixed percentage of every farmer’s payment will comprise of the greening element and the
same percentage will apply to all farmers each year.
On a national level, Ireland has fixed its percentage
at 30%, though the requirement is as high as 45% in
other member states. Greening must apply to the entire holding, even where there are more hectares than
are needed to claim the total number of entitlements.
There are three main components to greening, which
are as follows:
• Crop Diversification
• Permanent Pasture
• Ecological Focus Areas
Crop Diversification
As the name implies, this measure entails having two
or more crops and becomes relevant if the amount
of arable land exceeds a particular area. In addition,
no one crop can occupy more than 75% of the total
arable area.
* Source – Dept. of Agriculture Food and the Marine.
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The table below outlines the requirements:
Area of arable land
Number of Crops required
Maximum Percentage
10 ha (25 ac approx) or less
No crop diversification necessary
N/a
10 ha – 30 ha (25 ac – 75 ac)
At least two crops
Main crop – max 75%
> 30 ha
At least three crops
Main crop – max 75%,
main two crops – max 95%
There are a number of important considerations in relation to this requirement:
1. Where more than 75% of the farm is in permanent
pasture (or used for the production of grasses or
herbaceous forage), and the arable portion of the
farm is less than 30 hectares, crop diversification
does not apply. Permanent pasture refers to grass
that has been in-situ for more than five years. This
requirement of greening should not present a problem for most Irish livestock farms. Reseeding and
establishing grazing crops such kale or forage rape
on a grassland farm should not present any significant barrier either.
2.On arable holdings, where more than 75% of the
arable area is used for the production of grasses,
herbaceous forage or is lying fallow and the arable
portion of the farm is less than 30 hectares, crop
diversification does not apply.
3.Organic farms are also deemed to have met all the
greening criteria. Where only part of the holding is
farmed organically, this may need to be examined in
detail.
4.Winter and spring crops are considered as different crops. For each scheme year, only one crop will
count e.g. if a winter crop is established shortly after
harvesting a spring crop then the spring crop is
counted for one year and the winter crop for the following year.
Permanent Grassland
The ratio of permanent grassland (grass established for
more than five years) to total agricultural area must not
decrease by more than 5% from what was recorded in
2012. However, this is applicable at national level rather
than at individual farm level. The only way this would
have an effect at individual farm level is if the national
ratio is adjusted.
Ecological Focus Areas (EFAs)
This is probably the one aspect of greening that will
give rise to the most confusion. Holdings with more
than 15 ha (37 acres) of arable land must ensure that
5% of the land area is covered by an EFA. A review is
due to take place in 2017 and this percentage could rise
to 7%.
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Basically tillage fields need to have features such as the
following:
- Landscape features – hedges, drains, streams, rivers, ponds, trees (in a line or a group), field margins,
stone walls.
- Buffer strips (e.g. along watercourses)
- Afforested areas
- Green cover or catch crops (not for harvesting or
grazing)
- Leguminous (nitrogen fixing) crops – as long as they
are not being used for crop diversification.
These features must either be in the field (e.g. a pond)
or adjacent to it (e.g. a hedgerow or buffer strip).
Permanent pasture, in and of itself, does not constitute
an EFA so a holding with 45 ha of arable and 5 ha of
permanent pasture will base the calculations on the 45
ha of arable land but the 5 ha of permanent pasture will
not count.
Further clarification is required from the Dept. of
Agriculture on precise EFA criteria.
Summary
While Greening will be relevant to all farms, many
grassland farms will qualify automatically without
having to take on any extra work. The Department are
of the view that many tillage farms will also meet the
criteria but there are several issues yet to be clarified.
Given the complex calculations involved, tillage farmers
will have to complete their BPS applications online so
that the Crop Diversification and EFA requirements can
be calculated and assessed before the application is
actually submitted.
FDC Agricultural Consultants are available to offer
expert guidance on all aspects of meeting the relevant
Greening requirements on your farm.
A conversion matrix (multiplier) will be applied to a
landscape feature to ascertain its EFA value, e.g. one
metre length of hedgerow would equate to 10 square
metres of EFA. These multipliers are currently being
compiled by the Department of Agriculture based on
an assessment of farms in Co. Wexford.
The same exemptions that apply to Crop Diversification
also apply to EFAs, i.e.
1. Where more than 75% of the farm is in permanent
pasture (or used for the production of grasses or
herbaceous forage), and the arable portion of the
farm is less than 30 hectares, the EFA requirement
does not apply.
2.On arable holdings, where more than 75% of the
arable area is used for the production of grasses,
herbaceous forage or is lying fallow and the arable
portion of the farm is less than 30 hectares, the EFA
requirement does not apply.
3.Organic farms are also deemed to have met all the
greening criteria. Where only part of the holding is
farmed organically, this may need to be examined in
detail.
Summer Newsletter 2014
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www.fdc.ie
GLAS TED HORGAN – AG. CONSULTANT
The new Rural Development Programme, which has
a budget of over €4 billion from 2014 to 2020, will
play an extremely important role in supporting the
development and expansion of all agricultural enterprises in Ireland. The Green Low-Carbon Agri –
Environmental Scheme (GLAS) is a key element of
this programme with a total budget allocation of
€1,450 million over the lifetime of the RDP.
GLAS will be a five-year scheme with a maximum payment of €5,000 for up to 50,000 farmers. In addition, it
is envisaged that within the limits of budget availability,
some farmers who undertake particularly challenging actions may qualify for a top-up payment of up to
€2,000 per annum under what is known as GLAS+. The
initial targeting of this GLAS+ payment will be at farmers who have to undertake a high number of mandatory actions under the Tier 1 Priority Environmental Assets and Actions. Natura 2000 and Water Framework
Directive payments will be integrated into the Scheme.
It is anticipated that 25,000 to 30,000 farmers will be
accepted into the Scheme in 2015.
Organic Farming Scheme:
An organic capital investment scheme will be included
in the new Targeted Agricultural Modernisation Scheme
(TAMS II). The Scheme will be delivered as a stand
alone scheme. Within it’s budget of €44 million, increased payment rates are currently being examined in
order to more effectively support growth in the sector.
Locally led and targeted Agri-Environment Schemes
such as the current Burren Farming for Conservation
Project will be supported.
Areas of Natural Constraint:
• It replaces the Disadvantaged Areas Scheme and
has a very significant budget of €1,370 million. It is
intended to continue with the current level of support and designations
• A new category of support will be introduced in 2015
to specifically compensate for the particular
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challenges faced by Island Farmers.
TAMS II (€395 million)
The areas identified for funding are:
• Farm nutrient storage
• Animal housing
• Dairy equipment
• Low emission spreading equipment
• Animal Welfare and Farm Safety
• Pig and poultry investments in energy, water meters
and medicine dispensers
• Organic Capital Investment (organic farmers only)
• Young Farmer Capital Investment Scheme (including
the above areas and dairy buildings)
It is intended that support for investments in dairy
equipment, beef and sheep handling equipment, pigs
and poultry, slurry on tillage farms, and low emissions
spreading equipment will be prioritised initially. A general grant aid rate of 40% will apply, with 60% available
for young farmers. A separate BioEnergy Scheme will
also be in place to support the production of willow
and miscanthus.
Knowledge Transfer Measures:
A suite of knowledge transfer measures will underpin
the success of the RDP. These include:
• Knowledge Transfer Groups, with a budget of €100
Million, will be delivered in the beef, sheep, dairy,
tillage, equine, pig and poultry sectors and will be a
central support in developing the knowledge base to
underpin sustainable growth in the sector.
• European Innovation Partnership (EIP) Operational
Groups will provide a link between research and innovation and on the ground practices.
• Support for Continued Professional Development of
Advisers will ensure that the most up to date knowledge while Targeted On Farm Advisory Service will
be supported to deliver specific animal health and
welfare advice to farmers on key issues.
Support for Collaborative Farming
This support will encourage greater take up of approved collaborative approaches by providing support
aimed at alleviating the identified barrier of start up
costs (legal, admin etc) in establishing such collaborations.
Food Measures
Two food measures are proposed, namely support for
collaborative projects among artisan food producers
and collaborations among distinctive, regional primary
producers. Both these measures are intended to address identified barriers in terms of access to markets,
integration into food chains, problems of scale etc. It is
intended that these measures will build on the existing
expertise developed in LEADER projects in previous
programmes and will be delivered via the LEADER
mechanism.
Beef Data and Genomics Programme
(€295 million)
This innovative programme will draw on best practice
and cutting-edge technology in the area of genomics
to deliver benefits for the suckler sector in terms of efficiency of production and herd quality. These benefits
will in particular feed into climate change benefits and
competitiveness and productivity gains in the sector.
LEADER
The LEADER element of the RDP (with a budget of
€250 Million) will continue to be delivered via the
Department of the Environment, Community and
Local Government. A number of central themes have
emerged from consultations to date including;
• Rural Economic Development / Enterprise Development / Job Creation incorporating rural tourism,
enterprise development, broadband training and
rural towns.
• Social inclusion through building community capacity, training and animation.
• Rural environment.
Measures Directly Benefiting
individual sectors
Beef
The main measures of direct benefit to the beef sector are the new Beef Data and Genomics Programmes,
which will build to total annual payments of some €52
million. The Programme will lead to efficiency, competitiveness and quality gains in the sector via the use of
cutting-edge genomic technology. Knowledge Transfer Groups will focus on identified skills needs in the
sector. The TAMS II will include a range of supports for
beef farmers in areas such as animal handling facilities. The targeted advisory animal health and welfare
measure will assist farmers in dealing with challenges
in this area. The GLAS, Areas of Natural Constraint and
Collaborative Farming measures will also be important
supports for the sector.
Dairy
In addressing the challenges and opportunities facing
the dairy sector, the following RDP measures will be of
particular significance;
• Specifically targeted support for on farm capital
investment in dairy equipment and a dairy buildings
scheme for young farmers.
• Knowledge Transfer Groups for new and existing
dairy farmers.
• The targeted advisory animal health and welfare
measure will assist farmers in dealing with challenges in this area.
• The GLAS, Areas of Natural Constraint and Collaborative Farming measures will also be import supports
for the sector.
Sheep
The RDP will provide support to sheep farmers by
means of a range of measures, including a Knowledge
Transfer Group aimed at improving efficiency and profitability in sheep production. GLAS will be an important support for sheep farmers in general. In addition,
sheep farmers on commonages (and other commonage
shareholders) will be fast-tracked into GLAS, alongside
other environmental priorities. Key to fast-track entry to
Summer Newsletter 2014
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the Scheme will be the conclusion of a collective agreement amongst the commonage-owners concerned for
the management of these valuable landscapes. Sheep
farmers will continue to be significant beneficiaries from
the Areas of Natural Constraint Scheme.
A series of capital investment schemes are being introduced under the TAMS II, several of which provide for
sheep. These include assistance for sheep housing as
well as handling equipment, both fixed and mobile.
Pigs and Poultry
The main measures of benefit to the sector are;
If any of these Assets are applicable to your holding,
you must choose them, plan the relevant actions and as
a result you will receive priority access to GLAS in the
following provisional order;
• Specifically targeted support for on farm capital
investment in pig and poultry investments in energy,
water meters and medicine dispensers.
1. Farmland Habitat (private Nature sites)
• Knowledge Transfer Groups for the sectors.
3.Commonages (80% participation Note: lower participation levels addressed in Tier 2)
• The targeted advisory animal health and welfare
measure will assist farmers in dealing with challenges in this area.
Arable
The main measures of benefit to the sector are;
• On-farm capital investment support for slurry storage on tillage farms.
• A specific Knowledge Transfer Group for the tillage
sector will be implemented.
• The GLAS, Areas of Natural Constraint and Collaborative Farming measures will also be important supports for the sector.
GLAS Structure
GLAS aims to address the cross-cutting objectives of
climate change, water quality and biodiversity.
The following Core Management requirements are
compulsory:
• A Farm Advisory Service (FAS) approved agricultural
planner must prepare GLAS application
• Nutrient Management Planning
• Training in environmental practices and standards
• Record keeping of actions delivered
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TIER 1 Priority Environmental Assets
and Action
Year 1 and subsequent years.
All farmers with Priority Environmental Assets get
first priority access to the Scheme in Year One and
subsequent years. It is not guaranteed that all eligible
applicants in Tier 1 will enter the Scheme and a scoring
matrix will apply if necessary.
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2.Farmland Birds (e.g. Twite, Curlew, Corncrake,
Grey Partridge, Hen Harrier)
4.High Status Water Area
5.Rare Breeds
If your whole farm stocking-rate exceeds 140kg Livestock Manure Nitrogen per hectare (produced on the
holding), or you have greater than 30 ha of arable
crops, you may still qualify for priority access even if
you do not have one of the Priority Assets listed above.
To qualify, you must undertake one of the following
four actions. Places will be in allocated in the following
provisional order;
1. Low Emission Slurry Spreading
2.Minimum Tillage
3.Green Cover Establishment from a Sown Crop
4.Wild Bird Cover (grassland farms only)
Finally, if you are a registered Organic farmer you may
apply for priority access to the scheme under this tier,
by selecting actions appropriate to the environmental
priorities on your farm. However, if any of the assets
listed from 1-5 above apply, you must choose them first.
TIER 2 Environmental Assets and Actions
Year 2 and subsequent years
All farmers with Environmental Assets and Actions
get secondary access to the Scheme. It is not guaranteed that all eligible applicants in Tier 2 will enter the
Scheme and scoring matrix will apply if necessary.
If any of these Assets are applicable to your holding
you must choose them and as a result you will acquire
secondary access (once Tier I is filled) to the Scheme in
the following order:
1. Commonages (50% - 79% participation)
2.Vulnerable Water Area
If you wish to be considered for secondary access (but
none of the above are applicable to your farm), you
must choose one of the following four actions. These
places will be filled in provisional order 3 – 6;
3. Low Emission Slurry Spreading
4. Minimum Tillage
5. Green Cover Establishment from a Sown Crop
6.Wild Bird Cover (grassland farms only)
Farmers in Tier 2 may apply for secondary access in
sequence in subsequent years.
TIER 3 General Actions
Year 2+, depending on funding
These actions aim to enhance the climate change, water quality and biodiversity benefits delivered and can
be chosen in addition to Priority and Secondary actions
or on their own. However, selecting only General Actions will not guarantee entry to the Scheme.
A selection process will be used to allow farmers join
GLAS by means of these actions if take-up of Priority
and Secondary Assets and Actions falls short.
Low Input Permanent Pasture:
•
•
•
•
•
•
•
•
•
•
•
•
•
Traditional Hay Meadow
Riparian Margins
Coppicing Hedgerows
Laying Hedgerows
Planting New Hedgerows
Traditional Stone Wall Maintenance
Tree Planting (whips)
Environmental Management of Fallow Land
Arable Margins
Birds, Bees and Bat Boxes
Wild Flower margin
Wild Bird cover for tillage farmers
Protection of water courses (not in High Status or
Vulnerable Areas)
• Protection of archaeological sites
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Agricultural Relief
Michael Fitzgerald, AITI Chartered Tax Adviser, FDC Bandon
Agricultural Relief is one of the most important tax reliefs available to Farmers and their families. It is a relief
from Capital Acquisitions Tax (CAT) on the receipt of a
gift or inheritance of agricultural property.
CAT is payable by the recipient of a gift or inheritance.
There is a life-time threshold which has to be exceeded
before CAT is payable. This threshold depends on the
relationship between the disponer and beneficiary.
In 2014, the tax-free thresholds are as follows:
Group A: €225,000 - parent to child
Group B: €30,150 - lineal descendants, siblings,
nieces/nephews, grandchildren
Group C: €15,075 - any other person
The tax-free thresholds have been reduced significantly
in recent years, yet the value of agricultural land has
increased, which can potentially incur significant tax
liabilities on the transfer of agricultural assets either by
gift or in a will.
Agricultural Relief allows the transfer of assets without
the imposition of a punitive tax liability as it effectively
reduces the taxable value of the agricultural property
by 90%, this is known as the agricultural value.
How to qualify for Agricultural Relief
Firstly, in order to qualify for the relief the gift or inheritance must consist of agricultural property both at
the date of the gift or inheritance and at the Valuation
Date. The Valuation Date is the date at which the property is valued for gift and inheritance tax purposes.
Secondly, the donee / beneficiary must satisfy the
“Farmer Test”. To be deemed a “Farmer” at least 80%
of the beneficiary’s assets after receiving the current
benefit/gift (i.e. the Farm) must be agricultural property.
If the above criteria are fulfilled the charge to CAT on
the agricultural property received is calculated on the
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agricultural value and not the market value.
While this may appear straightforward there are certain
conditions which much be met in order for a claim for
Agricultural Relief to be successful.
Agricultural Property
Agricultural Property is defined as “agricultural land,
pasture and woodland situate in a member state and
crops, trees and under-wood growing on such land and
also includes farm buildings, farm houses and mansion
houses (together with the lands occupied with such
farm buildings, farm houses and mansion houses) as are
of a character appropriate to the property, and farm machinery, livestock and bloodstock on such property.” The
EU Single Farm Payment Entitlement is also deemed
agricultural property. It should be noted that harvested
crops are not deemed to agricultural property.
It is important to note that the existing farmhouse
will only be deemed agricultural property if it is being
transferred with the land i.e. the house and land must
be transferred together and to the same person.
The Farmer Test
For a beneficiary to qualify for the relief they must pass
what is known as “the farmer test”. This is an asset
based test, performed on the date of the transfer of the
agricultural property, which requires that over 80% of
the beneficiary’s total assets are agricultural including
the current gift / benefit and assets in which they have
a future interest.
Non-agricultural assets includes any assets such as
houses, cars, savings and investments. Since 2012 the
value of any outstanding mortgage used to purchase
or upgrade one’s principal private residence (PPR) may
be deducted from the value of their dwelling house.
Hence, if the beneficiary’s main residence is in negative
equity normally there is no value attributed to it for the
farmer test.
It should be noted that you do not need to be an active
farmer or hold a Green Cert to qualify for this relief.
Example of the farmer test:
John is to receive a farm, farmhouse, stock and machinery totalling €1,000,000.
being transferred and must be connected in some way
with the land. For example if John is receiving a farm
and his residence is built on a site which was once part
of the farm then his house could be considered the new
farm house and thus be included as an agricultural asset rather than a non-agricultural asset.
His non-agricultural assets are as follows:
In the instance where the beneficiary’s dwelling-house
is not located on land which is being transferred but is
PPR in joint names with wife
€300,000
in reasonable proximity to the land which is being received then there is a case for the house to be deemed
Half share of PPR
€150,000
a farmhouse. The main criteria for a dwelling-house to
less half share of mortgage
€100,000
be deemed a farmhouse is that there is some connection between the farming activities and the house. At
PPR €50,000 the very least the base or office for the farming activi(Half share less mortgage)
ties should be located in the farmhouse. There is ample
Investment Property
€100,000
case-law in this regard and Revenue takes a reasonable
(Full market value)
approach on this issue on a case-by-case basis.
Car€20,000
Savings€30,000
Gift or Inheritance to buy Farmland
Total non-agricultural assets €200,000
An interesting aspect of Agricultural Relief if that is it
also applicable to a gift or inheritance which doesn’t
Other agricultural assets
Nil
consist of agricultural property at the date of the gift
or inheritance, but where it is a condition of the gift or
inheritance that the benefit is invested in agricultural
1,000,000
___________________
= 83%
property within two years of the date of the gift or
1,000,000 + 200,000
inheritance.
Therefore for the purposes of the “farmer test” John’s
assets are deemed to be 83% agricultural, thus qualifying for Agricultural Relief. If however there was no
mortgage on his PPR or in the instance where the
mortgage was used on a property other than his PPR
then the actual value of the house would be taken into
account for the Farmer test.
The Farmhouse
Where the original farmhouse is not being transferred
to the beneficiary and where the beneficiary owes
his/her own house, this house could be considered a
farmhouse within the meaning of agricultural property
as defined above.
For this dwelling-house to be considered agricultural
property it must be appropriate to the size of the farm
This allows the beneficiary time to purchase agricultural
property using the money received and the amount is
taxable at it’s agricultural value (10% of the value of the
gift/ inheritance). If the gift or inheritance is not expended on agricultural property within two years of the
date of receiving it, it is taxable at full market value.
Woodlands
Another generous part of the relief is that the farmer
test does not apply to the value of trees and underwood growing on woodlands. The farmer test does
however apply to the value of the land which the trees
are growing on but not the trees.
Claw-back
A key condition of Agricultural Relief is that the
beneficiary must retain the relieved property for six
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years after receiving it. There will be a partial or full
claw-back of Agricultural Relief if the beneficiary
disposes of the property within six years of the gift
and does not within one year reinvest the funds in
agricultural property. This claw-back is in proportion to
the sale value and the value of the land.
Other Points to Note
Shares in a farming company do not constitute agricultural property.
This is an important point to note for farmers who
have incorporated their farm trade in a company and
who wish to transfer the farm and the shares in the
farm company to their successor. For the purposes of
the farmer test the value of the shares are included as
non-agricultural assets and this may result in the agricultural property assets of the successor amounting to
less than 80% of the total assets. This can significantly
impact on the ability of the donee/successor to meet
the “farmer test” for Agricultural Relief purposes.
For the last twenty-five years FDC Tax Department
has specialised in the tax-efficient transfer of farming
enterprises of all sizes. Each farm and family have their
own unique characteristics which need be taken into
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account to ensure that the living standards and legal
rights of the transferor is protected and maintained
while the successor can manage the farm with the
full support of the transferor. This process may take
a matter of months but in appropriate circumstances
the transfer is best effected over a number of years. It
is common for the successor to enter the business as
an employee before moving to a family partnership
and subsequently moving to a reversal of the original
employer/employee relationship. It is worth noting that
Agricultural Relief can operate independently of the
transfer of the trade, for example a father can transfer
the farmland to a son and after the transfer the father
can still operate the farm as the managing partner or
even as a sole-trader.
A farm is often transferred only once a generation. It
is vital that the best advice is sought when you are
considering the transfer of a farm. It is not possible to
predict what changes future budgets may hold but our
experience in this area enables us to see a little further
than most and take steps now to legitimately avoid potentially punitive tax liabilities. Please contact FDC Tax
Department if you require information on the various
farm transfer structures.
KEY AGRICULTURAL COMMODITY GRAPHS
Steers
Heifers
Factory
bullocks:
30 months Factory
Factory
cows
Factory
bullocks:
UnderUnder
30 months
cows
Average
price
for 500-600kg
steer
R Grade
factory
bullocks
(cent/kg)
incl*(c/kg)
VAT *
R Grade
factory
bullocks
(cent/kg)
DW inclDW
VAT
Average
400-500kg
heifer
R Grade
factory
cowsfor
(cent/kg
DW)
incl
VAT(c/kg)
R Grade
factory
cowsprice
(cent/kg
DW) incl
VAT
Weanlin
Weanling
Bulls
Factory
heifers:
Under
30 months
Factory
heifers:
Under
30 months
Average price
Average
price
for(cent/kg)
300-400kg
weanling
R Grade
factory
heifers
incl* VAT bull
* (c/kg)
R Grade
factory
heifers
(cent/kg)
DW inclDW
VAT
500 500 270
410 410 250
465 465 250
240
450 450 240
480 480 260
390 390
2013 2013
250
230
230
435 435
460 460 240
370
370
220
2013
420 420 220
2013 2013 440 440
230
2014
2012
3502012350 210
210
405 405
2013 2013
4202012420 220
200
2012 2012
200
330 330
390 2014
390 2014
2014
210
190
400
2014
2012
2014
400
2014
2012
2014
2013
2012
2012
2014
190
375 375
3102013310 180
380 380 200
180
360 360
190
170
290 290
360 360 180
170
345 345
160
270 270
340 340 170
160
150
330 330
250 250 140
150
320 320 160
315 315
140
300 300 150
230 230 130
300 300
Apr
May
Jul
Aug
Sep
OctDec
Nov Dec
Jan
Feb
Mar
AprJul
May
JunSep
JulOct
Aug
SepDec
Oct Dec
Nov Dec
Jan
Feb
Mar
AprJul
May
Jun
JulOct
Aug
Sep
Oct Dec
Nov Dec
JanMar
FebJan
MarFeb
AprMar
May
Jun
JulJun
Aug
Sep
Oct
Nov
JanMar
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
JanMar
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Jan Feb
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan Feb
Apr
May
Jun
Aug
Nov
Jan Feb
Apr
May
Jun
Aug
Sep
Nov
Dec
Factory
heifers: Under 30 months
Steers
Weanling
FactoryHeifers
cows
30 months
410
270
260
250
240
230
2012
220
210
2012
2013
200
190
180
170
160
150
390
370
2013
2013
2012
350
330
310
2014
2014
2012
290
270
250
230
JanMar
FebApr
MarMay
AprJun
MayJulJunAug
JulSep
AugOctSep
OctDec
Nov Dec
Jan Feb
Nov
OctDec
Nov Dec
ov
Steers
Heifers
Dairy bull calves
Average price for 500-600kg steer (c/kg)
250
240
230
220
210
200
190
180
170
160
150
140
AverageAverage
price for
400-500kg
(c/kg)
price
per headheifer
at Bandon/Blessington
2012
2014
2013
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
250
240
230
220
210
200
190
180
170
160
150
140
130
250
240
230
220
210
200
190
180
170
160
150
140
130
2013
2014
2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
270
260
250
240
230
220
210
200
190
180
170
160
150
2014
Jan Feb Mar A
Weanling Hei
Weanling
Bulls
Lambs and
hoggets: Week ending 10/06/2014
c/kg
Average
price for 300-4
Average
price for 300-400kg weanling bull (c/kg)
680
270
250
260
2014 Lambs
620
225
250
200
240
2013
2014 Hoggets
560
175
230
2014
2012
2012
150
220
2012
500 2014
210
125
2013
200
100
440
2014
190
75
2013
Hoggets
2013
180
50
380
170
2012 Hoggets
25
160
0
150
320
OctDec
Nov Dec
Jan FebJan
MarFeb
AprMar
MayApr
JunMay
JulJun
AugJul
SepAug
OctSep
Nov
Jan Feb MarJanAprFebMayMar
JunApr
Jul May
AugJun
SepJul
Oct Aug
Nov Sep
Dec Oct
Jan Feb Mar
Average price
Average price for 400-500kg heifer (c/kg)
250
500
240
480
230
460
220
440
2012
210
2013
420
200
400 2014190
2012
2014
2013
380
180
360
170
340
160
150
320
140
300
JulSep
AugOct
SepNov
OctDec
Nov Dec
Jan FebJan
MarFeb
AprMar
MayApr
JunMay
JulJun
Aug
2014
Weanlin
Heifers
for(cent/kg)
500-600kg
(c/kg)
R GradeAverage
factory price
heifers
DWsteer
incl VAT
*
Average
price factory
for 300-400kg
weanling
(c/kg)
R Grade
cows (cent/kg
DW)heifer
incl VAT
c/kg)
cl VAT *
270
260
250
240
230
220
210
200
190
180
170
160
150
270
260
250
240
230
220
2012
210Lambs
200
190
2013
Lambs
180
170
160
150
Nov
Dec
Jan
2014
Feb Mar Apr May J
Grain prices: Futures wheat price (LIFFE) for November
2014 (£/t), SPOT native wheat 2013 and 2014, SPOT
barley 2014 and SPOT corn ex-port (€/t)
300
280
260
240
Reproduced with kind permission of the Irish Farmers Journal
SPOT native wheat (€/t)
220
SPOT native 2013 (€/t)
200
180
160
140
Corn ex-port
(€/t)
SPOT native
barley (€/t)
J
F
M
A
M
J
J
A
S
O
N
D
Summer Newsletter 2014
| 13
www.fdc.ie
AppointmentS
David Purcell
MEET OUR STAFF
FDC CARRICK-ON-SUIR: (Front Row Left
to Right): Angela Anthony, Rachel Ryan,
Alan Walsh,(Back Row Left to Right):
Nicola Healy, Michelle Healy, Pat Williams
(Manager), Yvonne Murphy, Brendan
O’Loughlin, Marie Walsh
David Purcell joined FDC
Southwest Region in May
2014 as an Agricultural
Adviser. Qualified in 2006
with a B.Agr. Science
(Hons), David has extensive experience in cross
compliance, Single Payment Scheme, Nitrates,
Environmental Schemes
and other Government
Schemes.
From a dairying/beef
background, his hands-on
knowledge of the operation of a working farm
enables him to provide a
practical and professional
advisory service to his
clients.’
14
| FDC Group
FDC SOUTHEAST REGION: (Left to Right): Pat
Williams, Michael O’Keeffe, Vincent Hayes
(Regional Manager), Clyde Casey, Pat Phelan
SENIOR MANAGEMENT TEAM:
(Back Row Left to Right):
Micheal O’Driscoll, Jack Murphy
(General Manager), Barry Murphy,
Vincent Hayes, Edward O’Flynn,
(Front Row Left to Right): Pat Lane,
Paddy Murphy
FDC GROUP CAHIR: (Left to Right): Donncha
Collins (Tax Dept.), Brian Coffey (Financial
Services), Paddy Murphy (Regional Manager
Midlands) Denis Fitzgerald, Jim Cantwell
FDC SOUTHERN REGION: (Seated Left
to Right): Aine Nolan, Barry Murphy
(Regional Manager), Karina McAuliffe,
(Standing Left to Right): Derry Drew,
David Doyle
FDC SOUTHWEST REGION: (Seated
Left to Right): John Coombes Edward
O’Flynn (Regional Manager), Philip
Salter, (Standing Left to Right): Annmarie
Hurley, Michael Collins, Liam O’Halloran,
Aileen Murphy
Financial Services: (Left to Right):
Brian Coffey, James Roberts, Seamus
O’Mahony, Michael O’Driscoll (General
Manager), Mick McCormack, Donal
Broderick, John Whelan
FDC FOYNES: (Left to Right): Ann Marie O’Brien,
Georgina Frawley (Tax Dept.), Margaret Collins,
Pat Hanly (Manager), Conor Reen (Financial
Services), Marie O’Brien, Shirley Reidy
FDC MILLSTREET: (Centre)
Aileen Murphy (Area
Manager), (Standing Left to
Right): Marie Goulding (FDC
& Associates), Ann Kelleher,
Jospehine Creedon, Robbie
McDonnell (Financial
Services), Abby O’Connell,
Maria Bradley
FDC SOUTHERN REGION: (Left to Right): Kate Wright, Barry Murphy (Regional Manager), Claire
Hanrahan, (Standing Left to Right): Clement Hehir, Tim Hurley, Noel O’Connor
FDC TAX Dept. and FDC & ASSOCIATES: (Front Row L-R): Alan
Lyons, Josephine McMahon, Pat Lane (General Manager Tax Dept.),
Pat Hanly, (Back Row L-R): Willie John O’Flynn, Georgina Frawley,
Ger Owens, Michael Fitzgerald, Marguerite Cremin, Donncha
Collins, Enda Ryan (General Manager FDC & Associates)
FDC MIDLAND
REGION: (Seated
Left to Right):
Paddy Murphy
(Regional Manager),
Jim Cantwell,
(Standing Left
to Right): David
Rossiter, Paddy
Collison, Noel Ryan,
missing from picture
Tom Donegan
Summer Newsletter 2014
| 15