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Stability, but few new gains for Farmers in Budget 2026
Budget 2026 offers a sense of continuity for Ireland’s farmers, but little in the way of fresh momentum. While it’s welcome that key agricultural tax reliefs have been maintained and extended, many in the sector will view this Budget as one that holds the line rather than moves it forward.
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Certainty, not change
The Government’s decision to maintain Agricultural Relief on its current terms is a relief for many farm families. Valued at approximately €230 million annually, this measure remains central to supporting intergenerational transfer, helping older farmers pass on land without incurring prohibitive tax costs. The assurance that it will continue unchanged provides some much-needed certainty for families planning succession, though many hoped for stronger signals on future reforms to simplify and modernise the process.
Similarly, the 100% Young Trained Farmer Stamp Duty Relief, worth around €20 million per year, has been extended for four years - a small but meaningful improvement on the usual three-year cycle. This longer extension should offer greater clarity to young farmers preparing to take over family enterprises.
Still, the challenge remains in encouraging more young people into farming at a time of tight margins, rising costs, and increasing regulatory pressure.
Reliefs extended, but underlying pressures remain
It’s important to note that no new targeted supports were introduced for the wider agricultural sector. With high input costs, environmental compliance requirements, and succession challenges continuing to weigh on farm viability, these extensions may feel more like a maintenance of the status quo than a step change in policy direction.
Farm Restructuring (Capital Gains Tax) Relief and Stamp Duty Farm Consolidation Relief
Both have both been extended to 2029, a move that supports efforts to reduce fragmentation and improve efficiency. The inclusion of woodlands and forestry within the restructuring relief also aligns with environmental priorities and diversification goals.
A notable change for the sector is the reduction of the flat rate for unregistered farmers from 5.1% to 4.5%.
The Entrepreneur Relief lifetime limit on gains has been increased from €1 million to €1.5 million from January 2026. While this change will primarily benefit business owners, it could also support farmers who diversify or restructure their enterprises.
Animal health and TB funding
Budget 2026 also provides additional funding for the Department of Agriculture’s TB eradication programme. This is a welcome development, recognising the ongoing financial and emotional toll that TB outbreaks place on farm families. However, there remains significant work to be done to effectively tackle the disease and support affected farmers.
Environmental and business measures
Beyond direct agricultural supports, the Budget also extends several measures with indirect benefits for rural enterprises.
The Accelerated Capital Allowance for slurry storage will continue for four years, while the Energy Efficient Equipment Allowance has been prolonged to 2030; both encouraging ongoing investment in sustainability and emissions reduction.
At the same time, there were no major new incentives for on-farm energy production, diversification, or carbon efficiency, areas that many hoped would feature more prominently given Ireland’s climate commitments and the role farmers play in meeting them.
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A cautious budget in uncertain times
Overall, Budget 2026 reflects a cautious approach: steady, predictable, but lacking ambition for a sector in transition. For farmers, the continuation of existing reliefs is certainly positive but with rising costs, volatile markets, and a tightening environmental framework, the sector’s underlying challenges remain as pressing as ever.
Farm families can take reassurance in the stability these measures provide, but the message from Budget 2026 is clear: for now, it’s consistency, not transformation.
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