Budget 2027 Reaction
Macra is responding today to the announcement of Budget 2027, with the organisation’s full reaction below. As the voice of young farmers and young people in rural Ireland, Macra will assess today's measures through the lens of their impact on young farmers, farm families, and rural communities, with a particular focus on the supports needed to secure the next generation's future in agriculture.
12:58 - Welcome to our Budget 2027 live coverage
Welcome to Macra’s live blog for Budget 2027, where we will keep you up to date on today's announcements.
Tánaiste and Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers will read Budget 2027 today in the Dáil at 1 pm.
13:00 - Among Macra’s key asks:
- €5m pilot Succession Scheme in 2027.
- Continued support for the Land Mobility Service, increased to €150,000.
- Increased TAMS funding of €40m for young farmers.
- A ring-fenced TAMS fund for nutrient storage.
- A new €500m Growth and Sustainability low-cost loan fund for young farmers.
- Reform of the vacant and derelict property grant to improve young farmers’ access to housing.
- Dedicated funding for mental health provision, including Macra’s “Make the Moove” initiative.
- Increased supports for farm safety and addiction services.
- Increase to the income tax threshold
13:20 - Income tax
Macra welcomes today’s announcement of a €2,500 increase in the standard rate cut-off point to €46,500, bringing the threshold beyond the €46,000 increase called for by Macra.
Macra also welcomes the €125 increase in the personal, employee and earned income tax credits to €2,125, which will reduce the income tax liability faced by workers.
13:25 - USC
The threshold for the 3% USC rate is being increased by €1,600, from €28,700 to €30,300. That means income between €28,700 and €30,300 will remain subject to 2% USC rather than moving into the 3% band. Macra continues to call for further USC reductions - a higher 2% band ceiling remains necessary.
13:30 - Inheritance Tax
Inheritance tax thresholds have increased across all three groups.
The Group A threshold will rise from €400,000 to €420,000, Group B from €40,000 to €44,000 and Group C from €20,000 to €22,000.
This is a small but welcome move for farm succession.
13:35 - Microgeneration Tax Disregard
Macra welcomes the increase in microgeneration tax disregard, which it had called for in its pre-budget submission.
We welcome the increase in the tax-free income threshold for microgeneration from €400 to €600. This is a positive step towards encouraging farmers and rural households to invest in renewable energy and sell surplus electricity back to the grid. However, we continue to call for this to rise to €1,000 in order to strengthen the incentive for rural families.
13:47 - Succession Farm Partnerships
The tax credit for registered farm partnerships that are registered on the succession farm partnership register on or after 1 January 2027 is being increased from €5,000 to €10,000 (available for up to 5 years).
The minimum three-year holding period before which assets can be transferred under the scheme's rules is being removed for applications made to enter a Succession Farm Partnership on or after 1 January 2027.
Macra welcomes both of these measures, particularly the removal of the three-year land transfer rule, which was a trap for some young farmers who entered partnerships after the age of 32. This was a key ask in Macra's Budget 2027 submission; however, this is a policy change to a rule which should have never been allowed in the first place. This necessary rule change simply cannot be a substitute for our long-called-for Succession Scheme.
“Fixing a flaw in an existing scheme is not the same as investing in succession, and the Minister can’t dress up policy corrections as real action on succession,” Macra president Josephine O’Neill reacted.
Macra put forward a very achievable €5 million pilot Succession Scheme which would get the ball rolling on a CAP-supported Succession Scheme and support 100 farm families.
“Macra’s proposal supports both generations. The incoming young farmer could receive up to €180,000 in their first year to establish themselves, while the outgoing farmer could receive up to €180,000 over five years. €5 million is a relatively modest commitment in the context of the national Budget, but it could provide Government with a practical model that can then roll into a longer-term CAP Succession Scheme,” President O’Neill said.
In reaction to the increased tax credit for registered farm partnerships, Macra President Josephine O'Neill welcomed the increase. However, participation in Succession Farm Partnerships remains very low, with just 162 active Succession Farm Partnerships currently registered.
14:13 - A clear win for Macra on Farm Safety
Macra called for the accelerated capital allowance to be extended to 2029, and this has been delivered, with a further 12 items added to the eligible equipment list. This will support farmers to invest in vital farm safety measures.
14:15 - Rural Gardaí
Macra welcomes the increase in funding for Garda recruitment announced in Budget 2027, recognising the importance of adequate policing resources for communities across Ireland. Macra hopes that a proportion of the additional Gardaí recruited will be deployed to rural areas, in line with its calls for a stronger and more visible Garda presence in rural communities. Ensuring rural communities have access to appropriate policing resources is essential to supporting safer, more vibrant places to live and work.
14:19 - Vacant and Derelict Homes Schemes
Macra is disappointed that Budget 2027 did not deliver the reforms needed to make the Vacant and Derelict Property Refurbishment Scheme more accessible and practical for young people. The organisation had called for the maximum payment ceilings of both schemes to be increased, as well as extending the completion timeframe to 24 months, allowing for incremental drawdowns as key stages of works are completed. These changes would have provided greater certainty for young people taking on the significant cost of bringing vacant and derelict properties back into use.
14:30 - Capital Gains Tax
Macra welcomes the reduction in the standard rate of Capital Gains Tax from 33% to 31%.
Lowering the CGT burden can support investment and make it easier for farm families to plan for the transfer and restructuring of farm assets.
14:35 - €13/Ewe under Sheep Welfare Scheme
Funding of €22m has been confirmed for the continuation of the National Sheep Welfare Scheme in 2027.
The scheme will offer farmers a payment of up to €13/ewe, which Macra had called for since it was cut by €1.50/ewe in 2026.
Given the sharp reduction in sheep production in Ireland in recent years, this reinstatement of funding under the scheme is welcome. However, Macra believes this cut should have never been made in the first place.
14:37 - Fuel Income Support Scheme
Macra welcomes the €31.2 million allocation to extend the Fuel Income Support Scheme for five months of 2026. With fuel costs a significant pressure on farm businesses, this support will be particularly important for young farmers who are establishing their businesses and managing substantial investment and borrowing costs. Macra will continue to seek measures that provide greater certainty for young farmers facing ongoing input cost pressures.
14:39 - Straw Incorporation and Fertiliser Schemes
Macra welcomes the additional €4 million for the Straw Incorporation Scheme and €31 million for the Fertiliser Scheme. These supports will help young farmers manage input costs while maintaining productive and sustainable farm businesses, and Macra will continue to advocate for supports that recognise the particular financial pressures facing the next generation of farmers.
14:50 - Flat-rate VAT
Macra welcomes the increase in the farmers’ flat-rate VAT addition from 4.5% to 4.8% in 2027.
The reduction to 4.5% in Budget 2026 created an anomaly whereby the flat-rate addition fell below the 4.8% livestock VAT rate, creating additional costs for non-VAT-registered farmers selling livestock through marts.
This is particularly relevant for young and smaller farm businesses, many of whom may not be VAT-registered as they establish their businesses.
15:08 - Extension of RZLT Rezoning Exemption
The extension of the rezoning exemption from the Residential Zoned Land Tax (RZLT) for 2027 is a positive move.
This provides farmers with much-needed breathing space and greater certainty as they plan for the future of their farms.
15:17 - TAMS Budget
Government’s announcement of an increase in TAMS funding is welcome, but €93.35m falls well short of Macra’s €40m ask for additional funding targeted at young farmers. With investment essential to the viability and development of young farm businesses, we need greater ambition if we are serious about generational renewal
16:11 - Macra welcomes increase in TB compensation ceilings
Macra welcomes the increase of €500 in the TB compensation ceilings, bringing the maximum payment to €3,500 for commercial animals and €5,500 for pedigree animals.
Macra has long called for an increase in TB compensation to better reflect the significant financial impact that a TB outbreak can have on farm families. A TB outbreak can have serious consequences for a farm business, both through the loss of animals and the disruption it causes to the normal operation of the farm.
16:36 - Excise Cuts
A welcome extension of the fuel excise cuts, but the Government must be careful about what happens next. Any restoration of the excise must be considered in consultation with those most exposed to rising fuel costs and with the economic and fuel-price landscape at the time firmly in mind.
"The decision must take account of the economic landscape and fuel prices at that time. Farmers need certainty, but they also need a Government that is responsive to the circumstances on the ground when that decision is made," Macra president said.
16:48 - €21.6m boost for water quality and biodiversity
The additional €21.6m for Water Quality and Biodiversity European Innovation Partnerships is a welcome move by Government.
Young farmers are ready to deliver for water quality and biodiversity - the huge demand for the Farming for Water EIP proves it, with almost 6,000 farmers signed up.
17:12 - Reduction of VAT on Vaccines
The VAT on non-oral respiratory vaccines will be reduced from 23% to the lower 9% rate. Macra welcomes this reduction and hopes the cost savings will encourage increased uptake among farmers.
17:40 - Overall reaction as the dust settles
€22 million for the Ryder Cup, but Young Farmers Left in the Rough
Macra has expressed disappointment that €22 million has been allocated towards the hosting of the Ryder Cup in Ireland while the organisation's proposed €5 million pilot succession scheme gets left in the rough.
As the dust settles on Budget 2027, Macra says the contrast in funding priorities raises serious questions about the level of investment being made in the future of Irish farming.
While the Ryder Cup is a significant one-off event, young farmers represent a long-term investment in one of Ireland’s largest indigenous sectors. Generational renewal is in crisis mode and requires meaningful, targeted investment. It’s an issue that is very different to the one-off nature of a major sporting event.
Macra President Josephine O’Neill said: “The Ryder Cup will come and go, but the decisions we make now on generational renewal will shape Irish agriculture for decades to come. On the other hand, we are also deeply concerned that agriculture’s share of the overall national budget has fallen to a new low of just 1.85%. Agriculture is fundamental to our economy, our food security and the vitality of rural Ireland, yet its share of Government investment continues to shrink. Young farmers cannot be expected to build the future of Irish agriculture on crumbs from the budget table”
"We welcome the increase in the Succession Farm Partnership tax credit and the removal of the three-year land transfer rule. These are positive measures, but they are simply not enough. We need direct investment if we are serious about getting the next generation onto the land and into wellies."
There are some welcome measures for farmers in this Budget, including the extension of the Fuel Income Support Scheme, the full co-funding of the Fertiliser Top-Up, fuel excise cuts extended to the end of February and an increased TAMS allocation. However, these measures fall short of the level of funding and ambition that Macra was seeking.
The €31.2 million extension of the Fuel Income Support Scheme will provide welcome relief to farmers facing significant input costs, while the extension of the excise duty reductions on petrol and diesel is also welcome. However, these are supports responding to immediate cost pressures; they do not replace the need for long-term investment in the future of our young farmers.
“Young farmers are not a short-term project. They are the future of Ireland’s largest indigenous sector. If Government is serious about generational renewal, the level of investment must match the scale of the challenge.”