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Record livestock prices open door to smarter farm investment
Suckler and beef farmers are currently receiving higher prices than ever before for their livestock sales, both through the live trade and through beef prices received from processors. While these profits are long overdue recognition of years of investment and dedication, they bring new challenges: higher income tax bills, regulatory demands, and decisions on how best to invest for the future.
In some cases, weanlings and finished cattle are making €1,000 per head more than last year and, for an average suckler farmer selling 10 weanlings, this is leading to €10,000 extra income in the bank account. Where total sales for the year are up €20,000 on a 20-cow herd, the additional income could lead to an additional tax bill of up to €10,000 for the farmer paying income tax at the marginal rate.
"There are possibilities to reduce income tax bills, invest in the farm for the future, invest in family and make the farm a safer place to live and work." - ifac Senior Accountant, Trevor Boland
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Farmers must plan for bigger tax liabilities
Farmers now need to be aware now of what their farm profits are for 2024, what tax is payable on these profits and perhaps more importantly what the likely farm income is going to be for 2025. While many farmers in the past would look at income tax filing deadlines as a target and not need to worry about a tax bill, as quite often many, particularly farmers with off-farm income, found themselves with a low tax bill or indeed a refund.
For farmers looking at 2024 figures and expected income for 2025, there are possibilities to reduce income tax bills, invest in the farm for the future, invest in family and make the farm a safer place to live and work.
These profits are the result of many years of breeding and improving the farm performance. With the hard work and profits managing your tax cashflow is incredibly important. Suckler and beef farms will have tax to pay come October, so you need to get working, get your tax figure and understand your options then plan for 2025.
Securing farm wealth through smart tax planning
Farmers are urged to take proactive steps now, including:
Tax planning opportunities
Farmers are urged to take proactive steps now, including:
Leveraging 25–100% allowances on rising livestock values.
Formalising support from family members by paying wages to reduce tax liabilities while supporting education and living costs.
Income Averaging by spreading income tax burdens over five years to ease cashflow pressures.
Using record profits to strengthen retirement savings and reduce preliminary tax exposure.
Investing in the farm & family
With profits at record levels, 2024/25 is the time to reinvest strategically. Farmers should consider:
Improving safety and handling facilities to future-proof operations.Preparing for slurry storage and regulatory changes.
Applying early for TAMS grants and accelerated capital allowances to offset investment costs.
Building long-term resilience
The latest insights emphasise that managing higher profits is not just about tax.
Strategic financial planning — including pensions and succession — will determine whether farms can support future generations. As highlighted in recent commentary from ifac Senior Accountant, Trevor Boland, one in five farmers cannot currently afford to retire, underscoring the urgency of forward planning.
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