West Cork FARMING www.southernstar.ie/News/Farming
LOCAL AGRICULTURE | LOCAL PEOPLE
Spring 2014
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Martin Hurley Skibbereen
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Seamus O’Mahony QFA FLIA Senior Financial Planner of FDC Financial Services Ltd, has been working with Agri-clients for the past 15 years in the West Cork Region. FDC Financial Services Ltd is regulated by the Central Bank of Ireland.
Financial Planning asPects
Very often within the traditional farming sector, proper Financial Planning has been neglected in as it is not seen as being aligned to the everyday routine of farming. However, this has changed considerably over the past decade and farmer’s now appreciate the need for Financial Planning in conjunction with their daily work. It is vital for farmers to view themselves as running a business in their own right, similar to every other Entrepreneur and this certainly has been underestimated in terms of its responsibilities over the years. Timely Financial Planning has proven to provide one with greater choice when it comes down to some critical decisions that need to be made.
For each of us, as we run our own business, we need to very often stand back and appreciate where we are within the business and have a focus as to where we see it going. We personally need to stand back from the business thereafter and ask ourselves where are we personally as a family unit, and where are we going financially outside of the business. Hence we very often have two conflicting sides competing for the same income and this if neglected, comes to a head within 5 - 10 years prior to retirement where it is very difficult given that timeframe remaining, to rectify any shortcomings in financial planning in order to protect one’s self so that after our working life we can take comfort from having a financially secure retirement. In the past, very often a financially secure retirement took care of itself by way of a State Pension payable from age 66 and ideally where a couple were each in receipt of same. It had a reasonable purchasing power and gave them the financial security in retirement. However, we have to accept that the future purchasing power of the current State Pension is majorly at risk if that is our only source of income, given that they have increased the qualifying age to 68 years by 2028 together with a greater life expectancy being a taken now, given the medical advances over the years and hence gives rise
to a major issue for the Government of the day to handle into the future.
With so many factors out of our control in terms of legislative changes into the future, one has to take some personal responsibility to reduce the risk of these factors having an adverse affect on our future financial security and hence if there is any message that I would like one to take from this article it is certainly that of “We all personally need to take more responsibility of our own future financial well-being”. The acceptance is now fairly evident within the younger of our workforce at present, that we will have to work for longer before receipt of a State Pension, potentially work part-time in our retirement years or certainly beyond the current retirement age, have a retirement income from a private pension provision or indeed have an income from a business asset or private asset. Yes, the “Pension Sector” has taken its share of negative press over the years however one must not forget that the growth expectation of your fund must be in line with that of your risk profile and herein lies the most common issue for most where their attitude to risk and risk tolerance is very different than that where their funds are invested. Despite the austerity of the recent years of which has been painful for everyone, it has been very often forgotten, that funding into your retirement plan has still the benefit of tax relief on your payment at entry at your applicable tax rate, tax free growth on the returns over the life of your investment fund and a tax free lump sum on retirement, generally of 25% of your total fund. In addition, potentially some or all of the remainder of your fund can be extracted over your retirement life by using the current income tax exemptions of €18,000 for a single/ widowed or indeed €36,000
p.a for a married couple. This, if instructed correctly, can potentially provide an income of €12,000 p.a approx. tax-free in addition to the couple receiving the maximum current contributory pension of €24,000 p.a approx. In addition to regular retirement funding it is vital not to lose sight of the short term financial planning needs and we encourage clients regularly to set aside surplus capital from current accounts where possible, to accumulate annual interest while still having it available on demand, where the applicable rate at present in the market place is 2.3% p.a AER approximately and this annual interest can accumulate very quickly and can be used to offset daily running costs. A more recent approach of which has been very advantageous for smaller loans required is to use this accumulated deposit as a means of financing yourself rather than having to bear the cost of legal charges on your property for the smaller loans required. It can be very efficient to discipline yourself to accumulating that nest-egg fund once again by regular monthly contributions, similar to that of the loan repayment in any case, but together with growth accumulation over the repayment term, can work out very beneficial where you are eliminating your cost of lending and where possible using your deposit funds with the view of re-instating over often a shorter time-frame but with significant saving in terms of cash flow and bank interest. In conclusion, Financial Planning is applicable to our everybody and where applied sensibly has the benefit of compounding growth, and reduces financial burdens that often have to be overcome if left too late. With responsibility taken in time, together with discipline over the years, burdens can often be reduced substantially and regular monitoring of this reduces the risks and keeps it in line with the expectations.
FaRM incOMe aVeRaging, is it FOR YOU? Farm Income Averaging is a tax planning tool unique to farmers. Instead of being charged to tax on their farming profits in the normal way, full-time farmers may elect to have their profits charged on a three year average. With the unpredictability of farming income due to variables such as weather, yield and prices, farm income averaging offers farmers a legitimate means of reducing exposure to higher-rate income tax. For example, the average milk price in 2009 of 22.36c per litre rose to 33.11c per litre in 2011 generating a 50% increase in farm income and consequent increase in income tax. Many farmers elected to be assessed on an average of the three years in order to minimise their income tax bill. Rules governing farm income averaging • You must be a full time farmer to qualify (A full time farmer is described as an individual who is not, 1. at any time in the tax year carrying on another trade/profession either solely or in partnership 2. at any time in the tax year a director or employee of a company and who also controls directly or indirectly 25% of the company. • You cannot begin income averaging if you have made a loss in any of the previous two years. • Once an election for averaging is made, a farmer must remain on averaging for a minimum of three years or potentially suffer a full claw-back of the benefits. • If a farmer wishes to revert back to the normal method of taxation, the two tax returns immediately before the exit are reviewed i.e. if you wish to pay tax on the actual profits in 2014 then a review of 2012 and 2013 is required. • A farmer who avails of income averaging and enters into a Milk Production Partnership can continue averaging farm profits under the terms applicable if he or she had continued farming as a sole trader.
Many farmers would have opted for income averaging in 2011 or 2012 as these years saw income rise while funds to meet the annual tax bill were unavailable due to the previous poor years. This was a very helpful option which overcame a cash flow problem. Many of these farmers are now in the third year of averaging and have seen their tax bill rise over the past three years as the low profit years drift further into the past. In the coming years, these farmers may be taxed on profits in excess of their actual profits, but the total tax paid over the years should not exceed the tax bill of an identical farmer not in averaging.
Edward O’Flynn, Regional Manager FDC Accountants
The other factor which can affect the benefits of income averaging is the rate of tax on income. The Government have expressed their desire to reduce the tax burden on middle income families. If the tax burden is reduced by an increase in the standard rate tax band then this will benefit the farmer in averaging with reducing profits. Farming is a volatile trading environment and it is essential to plan in order to minimise your income tax bill. My advice to farmers is to constantly monitor profit-levels in order to stay one step ahead. It is important to seek expert guidance well in advance of pay and file tax deadlines.
For Further Information
Bandon: 023 8852961 | Skibbereen: 028 23303 | Bantry 027 52323 www.fdc.ie FDC Financial Services Ltd is regulated by the Central Bank of Ireland
West Cork Farming
Welcome to our Spring 2014 edition of West Cork Farming
AFTER another wet winter, West Cork farmers are hoping for a further improvement in ground conditions to let them get on with making a living for themselves and to get more work done on their farms as the evenings get longer with the advent of summer time. This time last year, things were a lot worse with a costly fodder crisis, which led to hay having to be sourced from abroad, adding to farmers’ production costs. The horsemeat in burgers scandal was also ongoing at the time. A good summer in 2013 meant that enough fodder was put aside for the winter months and, already this March, after an initial dry spell, animals have been allowed back outdoors. Hopefully, the weather will continue to improve to seasonal norms. In the background, however, there are many issues worrying local farmers and some of those in disadvantaged areas who opposed to cuts and penalties under the 2013 Single Farm Payment plan to take a case to the High Court. In conjunction with West Cork Communities Alliance and the ICSA, protests were held last month outside the offices of the three TDs for Cork South West and the protestors intend to make it a campaign issue for candidates in the forthcoming local and European elections. The farmers involved say they are determined to ‘do
something’ to safeguard the future of their farms, because inaction would put farmers’ livelihoods at stake. They agreed that a core group of affected farmers would take a test case to the High Court, and Europe if necessary, to challenge what they described as the unfair and unjust cuts being imposed by the department. Under the reformed CAP agreement, a new rural development plan (GLAS) is being agreed by stakeholders, a new basic payment plan is to be rolled out, farmers have issues with beef prices, the high cost of producing weanlings is only leaving a very small margin for suckler farmers and, of course, the end of the milk quota regime next year is fast approaching. It is indeed a time of huge change that farmers will have to adapt to as Minister for Agriculture Simon Coveney lays down the gauntlet to everybody involved in the industry to achieve his ambitious Food Harvest 2020 targets. In this Spring edition of West Cork Farming, we talk to a number of farmers about issues that concern them, including Mark Harrington of Allihies, who has overcome huge challenges to undertake a course at Clonakilty Agricultural College in Darrara. Also, we interview Caheragh’s Martin Hurley, the first representative of Skibbereen Mart to become overall chairman of Cork Marts. Tim O’Leary defied huge odds before Christmas
to become national deputy president of the Irish Farmers Association. In a detailed interview, he talks about his own life in agriculture and about issues concerning IFA members that the organisation is tackling. Farming issues are a source of great interest in the rural community that is West Cork and The Southern Star carries two pages of West Cork farming news and views weekly. As always, we encourage anyone who wishes to make their opinions on agricultural issues known to us through editorial@southernstar. ie The West Cork farming coverage in The Southern Star also provides a useful platform for advertisers – to whom we are, as always, very grateful – and enquiries may be made through advertising@ southernstar.ie or by phoning either Anne Kelleher or Donnchadh Crowley on 028-21200.
Yours sincerely, Con Downing Editor of The Southern Star
Lisavaird Co-op continues its relationship with SCR Dairy Technology the world’s leading innovators when it comes to dairy farm automation. James White technical sales specialist who has been integral in bringing the Heatime systems to local attention is convinced that the benefits to our suppliers of the Heatime heat detection system makes investment in it a no brainer. The financial cost to the farmer of a cow not going in calf is €12 per day, which can add up to a substantial amount for a 100 cow herd, James said. Farm Manager Daragh Kennedy felt so strongly about the benefits of the system that he installed it in our own dairy farm in 2012. “It’s like having someone employed 24/7 to just do heat detection and herd health monitoring. I haven’t done heat detection in two years and have knocked 10 days off our Autumn Calving season and two weeks off the spring calving, with more cows calving to A.I. “
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Chairman of Cork Marts Martin Hurley on markets, milk prices and travelling the world
Cork Marts chairman Martin Hurley and a four-legged friend. BY BRIAN MOORE MARTIN Hurley is halfway through his term at the head of the table as chairman of Cork Marts. While a farmer all his life, Martin has found his time as chairman both rewarding and challenging. ‘I am the first chairman elected from the Skibbereen Marts committee and my job is to publicly represent the board and to lead the meetings. I work very closely with the CEO, Sean O’Sullivan, and I also represent the 11,000 shareholders in Cork Marts,’ Martin told The Southern Star. With over 170,000 cattle and 120,000 sheep sold annually at the Cork Marts facilities in Skibbereen and Corrin in North Cork as well as a number of
other farming events and conferences, Martin has had a very busy year as chairman. ‘I was born and reared on a farm and after my father died when I was nine years old, I think I knew then that farming was the only life for me. I have 70 acres owned and another 90 acres rented in the Caheragh/Drimoleague area, all within a five- to six-mile radius. My farm is split between my dairy herd and suckler cattle,’ Martin continued. While working his farm alone, Martin is never short of help should he need it. ‘People are always available when I need them to run the circus, so to speak. I have the freedom to do what I want, it’s not a nine-to-five sort of job but I wouldn’t have it any other way. I
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West Cork Farming love the variety that the life and nature has to offer in farming. It’s not so much a job as a vocation,’ Martin said. Markets Like every job, farming comes with its up and down and for Martin, he knows that the responsibility for his business is all down to him. ‘I have no boss but myself and this is great. I am responsible for everything that goes on inside the gates of my farm, the problems occur from what goes on outside the gates. As farmers we are all at the mercy of the world markets and it is here that we all have to work together to ensure that we get a good deal from these markets,’ Martin said. It’s not only market forces that make life difficult for the Irish farm. ‘We are so dependent on the weather, with the very wet winter we just had farmers are forced to house their livestock for much longer periods of time. This adds to feed bills and with levels of nutrition lost in the soil, this year is going to be very difficult not only for beef production but for sheep and dairy farmers as well,’ Martin said. Apart from the bad weather and falling beef prices, Martin is very optimistic for the future. ‘Current milk prices are very good and the markets are getting stronger. I think the outlook is good but I feel
Martin Hurley at work on his farm at Lissangle, Caheragh. that the planned ending of the quota system will be a disaster for dairying in the long run. In any market that has no limit on supply, it is the farmer that will lose out at the end of the day. I would favour an annual percentage instead,’ Martin continued. While the business is very much a major part of Martin’s life, he always finds time for his favourite hobby. World travels ‘Farming is a very physical activity and
can be tougher at certain times of the year due to the weather and so on, but I love travelling and I try to get away as often as I can. I plan on visiting all five continents before I die and I’ve made a good stab at it so far with trips to New Zealand, Australia, Brazil, Argentina and India. Next I’m off to visit new-found relatives in California,’ Martin said. Martin’s travels, while always relaxing, have also inspired new activities back on his farm in West Cork. ‘Back in the early 1990s I made a trip
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The Herdwatch team – from left – Fabien Peyaud, Eoin Moloney and Gearóid Fox.
A NEW mobile herd manager app has been launched that enables farmers to register calves straight from their smartphone. Launched by Tipperary-based Farm Relief Services (FRS) Network, it allows farmers to download their herd data from the Department of Agriculture directly into the Herdwatch app, and stay compliant by recording remedy purchases and usage. It’s very easy to use: ‘if you can text, you can use Herdwatch’, said FRS. Herdwatch is the only cross-platform mobile service approved by the Department of Agriculture, the company said, and allows farmers to register calves directly on compatible smartphones, tablets, laptops and PCs. Pedigree names and sires will be sent to the Department of Agriculture and onto the Irish Cattle Breeding Federation (ICBF). Farmers can also download their herd directly into Herdwatch from the Department’s online register
(Agfood) – there’s no need to manually enter all animals. Remedy purchases and usage can be recorded directly in the app, which holds a full list of bovine remedies approved by the Irish Medicines Board (IMB). Remedy records are not shared with the department. Fabien Peyaud, IT manager at FRS Herdwatch, said the app has gone through a successful testing phase with farmers and has been tweaked since it was first previewed at the National Ploughing Championships. Already farmers have downloaded thousands of cattle from the department’s online register and hundreds of calves have been registered successfully, he said. The cost of an annual subscription is €99. Those who subscribe in March receive a month’s access for free.
For more information see herdwatch.ie or text ‘frs herd’ to 51444.
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West Cork Farming
Spring is here – at last! BY DEIRDRE SHEEHAN
IT’S hard to believe we are already at the end of the third month of 2014 and we are finally seeing some signs of spring. There are daffodils and crocuses appearing in places, more sunshine for a bit of much-needed warmth and the wonderful lengthening of the days. What a joy to be in what’s left of our tunnels when the sun is shining and feel the heat! With some apparently fine weather heading our way, there should be an increase in soil temperatures and the growing can really get started. Luckily, other than potatoes, most things can be started in pots in the warmth of the propagator house. The plans to start early potatoes in a tunnel were scuppered by the wet ground but they are in now. We could also use the spring to start planting some trees to replace the huge amount that came down in the storms of the last few months. It would be great to focus on our native woodland varieties such as oak, ash, alder, larch and beech. For every tree to be replaced, there should be a minimum of three planted to ensure that at least one will reach full maturity. If looking for some inspiration check out the Branch Out group in Clonakilty. On Saturday, March 8th, they aim to have planted 2,000 native trees at the Cork County Council-provided site near the town. This is in addition to the 1,500
trees that were planted there last year by the volunteers. What a great community effort to create something together that will become an amenity for years to come. The upside to losing so many trees, ones that my Dad remembers planting in the 1940s and 1950s, is we are set for firewood for a good few years to come. Of course it is creating a lot of extra work at the moment trying to get it all cut up, moved and stored but it will definitely help cut those energy bills. Connection Hopefully some of the timber might be suitable for making something. My other half framed a very large mirror for me using the timber from a tree my dad planted in 1942 as a wedding present. The tree came down during the bad storms in 1998 and had been stored until a few years ago. It looks amazing and I love the fact that there is a story attached and a connection to my dad and a seed he planted 70 years before that I can keep
and maybe pass on. As he approaches his 90th birthday, we are all in awe of his memory. He throws out dates of events in his life as though it was last week, the trees being a case in point. He knows which ones were planted in which year, sometimes in which month and is the same discussing how good or bad the weather was in certain years going back decades. He and a nearby neighbour, who is no longer with us, planted most of the trees on our townland. It is sad to see so many go, but we will just have to grow some more and continue the tradition. Spring is such a lovely time of year to be out and about. I think we are all seasonally affected to some degree, I feel like I am waking up at this time of year. With the return of some fine weather, we can look forward to seeing the animals out in the fields again, all the young calves and lambs, grass growth and the return of the bright evenings. It will be a long road for those worst affected this winter but the snippets of light do give us hope.
John O’Sullivan
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West Cork Farming
Q&A
THIS week Elaine Johnston from Durrus, who is Carbery Macra regional PRO, tells The Southern Star about her life, her likes and dislikes and reveals what makes her tick … Where were you born? The Erinville Hospital in Cork Family: Mum and dad John and Audrey, fiancé Brian O’Mahony, sisters Rachel and Yvonne, brothers John and Gavin and my beautiful niece Michaela. Schools attended: St James National School, Durrus; Schull Community College and the Institute of Technology, Tralee. Occupation: Staff Nurse at Bantry General Hospital. Best friend: My fiancé Brian O’Mahony. Earliest childhood memory: As the eldest I used to get to tag along with my grandmother, Effie, and she’d always take me to the shop to get sweets. Apart from your family, who would be the first person you would invite to your birthday party? Bantry Macra!! The best bunch of people. Public figure you admire the most: Donal Walsh and his family. Truly amazing people. Public figure that irritates you the most: Minister for Health James Reilly. Where’s your favourite place in the world? My bed after night duty! Favourite place in West Cork? A spot in the townland of Maulamill in Durrus. It’s at the top of the hill on the road that connects the Goats Path road on the north side of the peninsula and the back road from Durrus to Ahakista on the south side of the peninsula. When you stand there you can see for miles in every direction and you have full view of Dunmanus Bay on one side and Bantry Bay on the other. Stunning. Dinner party at home or a night in the pub? Dinner party at home. What’s your signature dish, if you’re cooking? My chicken casserole or my chocolate chip cookies!
Elaine Johnston
Hangover cure: Ice-cream!!! Favourite sporting moment: The moment the referee blew the final whistle in Croke Park in September 2010 and Cork had beaten Down in the All-Ireland football final. Favourite book: Anything by Maeve Binchy, they never get old no matter how many times you re-read them. Favourite film: ‘Cool Runnings.’ Favourite TV programme: ‘Revenge’ at the moment. Favourite heart-throb or pin-up: Brax from ‘Home and Away’ – although it must be said that he’s no Brian O’Mahony!! Morning person or night owl? Night owl!! Christmas morning or Midsummer’s Day? Christmas morning. Your proudest moment: Receiving my Nursing degree. What makes you happy? Spending time with family and friends, especially my three-year-old niece Michaela who has the ability to brighten any day. How would you like to be remembered? Always up for the craic, hard-working and reliable. West Cork is so special because … It’s home. Everything about it is special (except its roads at present), it couldn’t be equaled anywhere. Its scenery, its food, its arts, but most of all its people and its characters.
9
West Cork Farming
Chainsaw behaviour is ‘frightening’ warns Husqvarna APPROXIMATELY 120 chainsaw or wood-related accidents take place in Ireland every year, according to the Health and Safety Authority (HAS), and 12 persons in the last five years have suffered a fatal accident arising from the use of chainsaws or tree-felling work activities.
At this time of year, of course, people like to chop their own firewood to keep them heated in the cold winter months. However, chainsaws are ‘probably the most dangerous hand tool that can be purchased on the open market, if used incorrectly’, cautions Andy Walsh, head of service for Husqvarna Ireland and an expert on Husqvarna chainsaws. ‘Unfortunately, a lot of people jump straight in to use them with absolutely no training whatsoever.’ Husqvarna, he said, runs annual chainsaw information evenings around the country, adding that the firm sees a ‘frightening’ number of people who’ve never owned chainsaw-protective clothing. Tips Wear a helmet with earmuffs, visor and protective glasses, says Walsh. ‘A helmet is designed to protect you from falling branches and impacts. The visor should cover all of your face to protect against scratches and sawdust spraying up into your face. Protective glasses will provide additional protection for your eyes – the last thing you want is a woodchip or worse, a screw, nail or piece of metal flying up into your eye as you work.’ A forestry jacket or shirt is also important, one that provides full upper body coverage and is ventilated, while you should ‘definitely ensure’ that the protective trousers you are buying is fitted with chainsaw protection that meets international standards.
Gloves with saw protection in the left hand , a very common injury spot, also protect you from the saw chain.
Boots should be fitted with protective toe caps, saw protection and deep-treaded soles (anti-slip protection) in accordance with international standards. Work gloves are vital to protect against cuts and scratches, oils and fuels when working.
People should always have a first aid kit easily accessible, says Walsh. Finally, in case of an accident, have a whistle or mobile phone or radio, or all three, easily accessible while you are working – it ‘might just save your life’, says Walsh.
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10
West Cork Farming
Teagasc to explore breeding strategies at Moorepark open day A TEAGASC open day for all dairy farmers will take place at the Moorepark Dairygold research farm in Kilworth, County Cork at 10am on Wednesday, April 9th. The event, entitled ‘Breeding Strategies for an Expanding Dairy Industry’, will provide dairy farmers with direction on breeding strategies for the coming breeding season. Fertility performance has improved on Irish dairy farms, Teagasc said. However, Irish Cattle Breeding Federation (ICBF) data indicates that the average calving interval is 394 days compared to an industry target of 365 days, it added. Similarly, the sixweek calving rate of mature cows is 58% compared to an industry target of 70%. The next-generation dairy herd, currently being evaluated by Teagasc at the Dairygold research farm, will be exhibited on the day, including up-to-date results. This herd, with an EBI of €244, represents the top EBI herd in the country, and are the type of cows
that Irish dairy farmers will be milking in ten years, based on current rate of genetic gain. The latest results in relation to robotic milking will also be highlighted. A grass-based robotic milking system is currently being developed in the Dairygold farm. Dairy farmers will see the key management factors needed to operate a successful automatic milking system. Barrier Dr Pat Dillon, head of Teagasc animal and grassland, research and innovation programme, said: ‘Poor fertility performance is still the number one barrier to profitable milk production in Ireland. A more compact calving pattern in early spring will allow dairy farmers
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to produce more milk and increase overall farm profit. The important components of achieving compact calving are breeding a high-EBI herd, generating high quality replacement heifers, maintaining optimum cow body condition score, achieving high herd health status plus the timely treatment of problem cows including late calvers with appropriative reproductive treatment.’ Two international speakers, Professor’s Matt Lucy and Paul Fricke, have been invited to speak at the open day. Both of whom have played important roles in fertility programmes, both in the USA and internationally. The open day runs from 10am to 3pm. Admission and parking is free.
11
West Cork Farming
Department clarifies position on storm damage Force Majeure in ‘positive’ meeting with ICMSA SPEAKING following a meeting with senior officials of the Department of Agriculture, Food and Marine, Patrick Rohan, chairperson of ICMSA’s Farm Services and Environment Committee, said that the Department had clarified a number of issues for ICMSA in relation to farmland damaged during recent storms and how this will be addressed in inspections in the coming year. The clarifications, according to Mr Rohan, were both needed and welcome. The Farm Services chairman was particularly satisfied that the Department clarified the following would be treated as Force Majeure for the coming year: -
Where trees have fallen on farmland and will not be cut this year, the Department has confirmed that the area covered by the trees will remain eligible land and thus the farmer does not have to make an adjustment to his/ her land area. Given the huge number of trees that have fallen throughout the country in recent storms, this is a welcome development and takes some pressure off farmers said Mr. Rohan.
-
Where farmland that was declared in previous years has become covered in rock, stones, rubbish, seaweed etc, the Department will again treat this land as eligible land so the farmer will not have to adjust his/her maps in relation to this issue.
-
In relation to farmers who have lost land to the sea, the Department have confirmed that these farmers will be able to consolidate their entitlements onto their remaining land to ensure that they can claim their full payment for 2014. While this is welcome in relation to their direct payments, Mr. Rohan pointed out that the reality for the farmers concerned is that they have lost land to the sea and this is a wider issue that needs to be addressed by the state agencies responsible for the management of their coastlines.
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In relation to forestry land that is eligible for Single Farm Payment that was badly damaged with trees blown-over, etc, the Department confirmed that this land will remain eligible for 2014 for the Single Farm Payment.
Following the meeting, Mr Rohan said that he was satisfied that the Department will take a reasonable approach on this matter but he added that ICMSA will be monitoring the situation in the coming months to ensure that the Department live up to the commitments given at the meeting.
Quality Service Giving West Cork the Genetic Advantage Con O’Driscoll
Daniel Hayes
Schull/Mizen Bantry/Durras/Kealkil/ Ballydehob/Churchcross Kilcrohane
John O’Mahony
Leo O’Shea
Donal O’Mahony
Ger McCarthy
Kieran Kelleher
Jim McCarthy
Bantry/Durras/Kealkil/ Kilcrohane
Beara
Caheragh/Drimoleague
Bantry/Drimoleague
Castletown/Murragh/ Bengour/Dunmanway
Skibb/Drinagh/ Dunmanway
Pat Ryan
James O’Sullivan
Kevin O’Donovan
Keith Vickery
Con Cashman
Ernest Jennings
Roger Anderson
Martin Daly
Corren
Union Hall/ Castlehaven/Baltimore
Lisavaird/Rosscarbery/ Reenascreena/ Rossmore
Clonakilty/Ardfield/ Lisavaird/Darrara/Ring
Barryroe
Ballinascarthy/ Ballycummer
Kilbrittan/Bandon/ Enniskeane
Innishannon/ Waterfall
Declan O’Sullivan
Brian Hayes
Jeremy Jennings
Niall O’Callaghan
Sean Healy
Leon Tebogt
John A Murphy
Tom Tobin
Kinsale/Minane Bridge
Bandon/Crossbarry/ Templemartin
Bandon/Ballinadee/ Ballinaspittle
Macroom/Dunmanway
Macroom
Dripsey/Berrings
Waterfall
Ballinhassig/Carrigaline
Area Manager: Eustace Burke 086 0274558
To book an AI Call
Tel: 023 8832828
Area Manager: Declan Keating 086 8164024
12
West Cork Farming
CAP Information Meeting Decisions on the 2014/2015 SFP will influence your future payments 2015 to 2019 _____________________________________________________________________
• Topics:
Speakers:
§ § § § § § § § §
Future Farm Payments Transfer/Leasing of Entitlements Young Farmers “Top Ups” Impact on Companies New Nitrates Regulations Suckler Cow Schemes TAMS Farm Buildings/Investments GLAS Agri-Env Programme Taxation Issues
Owen O’ Driscoll & Sean O’Mahony Agricultural Consultants Donal McCarthy & Michael O’Sullivan Crowley & McCarthy Accountants
Venues:
Clonakilty 31st March Fernhill House Hotel West Cork Hotel Skibbereen 1st April Westlodge Hotel Bantry 2nd April Meetings start at 8.30 pm sharp
For Futher information Contact 028 23283
Daly urges young farmers to avail of tax incentives CORK South West Fine Gael TD Jim Daly has urged young farmers, particularly those taking over a farming business from their parents, to make themselves aware of the tax incentives and financial supports available from government agencies. Minister for Agriculture Simon Coveney has ensured that key taxation measures that promote earlier lifetime transfer of holdings have been retained, said Deputy Daly, and has helped introduce some amendments to the taxation code to help young farmers to take over family-run farms from their parents. These include agricultural relief, is a relief from capital acquisitions tax that operates by reducing the market value of agricultural property by 90%, so that gift or inheritance tax is calculated on an amount – known as the ‘agricultural value’ – which is substantially less than the market value. In general, the relief applies provided the beneficiary qualifies as a farmer at the valuation date. The stamp duty exemption on transfers of land to young trained farmers, noted Deputy Daly, provides for a full exemption on stamp duty on transfers of farmland to certain young trained farmers. To qualify the young farmer must be less than 35 years of age and must have attained a minimum agricultural education standard. This measure has been extended until the end of 2015. Enhanced rates of stock relief are provided for in certain circumstances. A 100% stock relief rate is available for up to four years for certain young trained farmers. This measure has also been extended until the end of 2015. If a young dairy farmer has used the four-year window of claiming the 100% stock relief, he can avail of a 50% rate of stock relief if he participates in a registered milk production partnership. Retirement relief from capital gains tax (CGT) on land transfers is available where an individual over 55 years disposes of some or all of his land once certain criteria are met. There are two separate retirement relief thresholds, depending on the relationship of the transferor to the transferee. Irrespective of the amount of consideration for the transfer, full CGT relief may be claimed by a person aged between 55 and 66 years of age on the transfer to his or her child. For
land transfers by people aged over 66 years of age, the amount of full CGT relief is only available on considerations up to €3m, again to encourage earlier lifetime transfer of land holdings. If the child disposes subsequently of the land within six years, clawback of the above reliefs applies.
Tax review
The recently announced agri taxation review will analyse the benefits and costs of the various tax measures to the agriculture sector and the wider economy, Deputy Daly added. ‘The overall objective of the review is not to change the level of support to the sector through the tax system but rather to maximise the benefits to the sector and the economy for that existing level of support’, he said. The government hopes to encourage and attract young farmers and new entrants to farming, he said, and also to foster earlier lifetime transfers within families. ‘In addition to the tax reliefs, the Department of Agriculture has also provided a range of on-farm supports, most of which were supported under the old common agriculture programme’, he said. These include the new entrants to dairying scheme, which helped ‘revitalise’ the sector through the provision of milk quota to ‘dynamic educated farmers’; the dairy efficiency programme, which encouraged the adoption of best practice management and production methods on farm by means of discussion groups; and the dairy equipment scheme. which had a weighting towards young farmers and aimed to encourage young farmers in milk production by providing them with financial and technological supports. The provision of financial support for the Irish Cattle Breeding Federation (ICBF) and Animal Health Ireland has also helped improve breed quality and animal health, said the Clonakilty-based TD. The new CAP programme will facilitate the introduction of further supports in the areas of knowledge transfer and capital equipment, he added, with Minister Coveney proposing to announce such supports over the coming months.
13
West Cork Farming Two choices The farmer has two choices when it comes to fencing – either to DIY or contract out the entire fencing job.
FRS offers solutions to farm fencing problems
Tips before you embark on DIY fencing:
FARMERS have been hit hard with the recent weather in Cork and their fences have taken the brunt of the storms. FRS Fencing has reported a huge demand from farmers in Cork to come quickly and fix their fences after the hits they have taken. Most fencing damage is visible, but much more could be hidden under the surface, which might not be easily detected, so farmers need to be thorough with their checks or get the experts in to do a fencing health check in order to identify potential faults and weaknesses that need to be repaired.
1.
Be prepared in advance and measure up the area you want to fence
2.
Make a list of materials needed: Strainers, posts, wire, staples, insulation etc.
3.
Check you have all hand tools required: Hammer, fencing pliers, wire pullers, wire dispenser (spinning jenny), etc.
4.
Is your post driver in good working order or if you need to hire one. Is it available? Can you use it safely and effectively?
5.
Safety! If you are working in unknown ground, check for overhead lines, buried cables and water pipes, etc. It only takes a few minutes to check and could avoid an accident or money and time spent on repairs.
6.
Labour - have a good experienced tractor driver with you as a lot of the fencing work is done behind the tractor and if you are working a standard post driver you are depending on the tractor driver to operate the block of the post driver - which can be very dangerous in the wrong hands!
Normally at this time of the year, a complete maintenance check of farm fences is a must for livestock farmers before stock leaves the yard for another long-awaited grazing season, giving essential security and grass management to both livestock and farmers, but these checks are even more vital this year.
Contract job Contract fencing considerations (based on what FRS Fencing can offer): 1.
Full range of quality materials available and selected by the experts
2.
The job will get done quickly and efficiently
3.
All tools and equipment are supplied by the contractor - taking this expense and leg work out of the job
4.
The most suitable and up to date machinery are used, eg side mounted post drivers, which means less driving around fields, which is important where there may be soft ground conditions etc.
5.
All fencers are health and safety trained and fully insured. Fencers are experienced, and are aware of potential hazards and have a good safety record.
6.
Provides a reputable fencing service with proven experience and expertise.
Next steps So whether it’s DIY or contract fencing you choose you will need a materials and service provider that you are confident will deliver quality products, advice and service. FRS Fencing has serviced the fencing needs of farmers for over 30 years and in recent times have identified a gap in the market to offer top quality direct fencing materials and supplies coupled with expert fencing advice to offer a DIY service. FRS Fencing also offer a full contract fencing service and can provide a quote for both options.
Contact your local FRS Fencing office: Distillery Road, Bandon, 023-8844200; Dromalour, Kanturk , 029-51444; Knockgriffin, Midleton, 021-4613501 or mobile 087-6608844; email info@frsfencing.ie or log on to www.frsfencing.ie
L I S AVA I R D
OuR MAIn DeALeRS:
Phone 023-8833198
Phone 023-8833198
14
West Cork Farming
Agri Matters Modest improvement in farm incomes in 2013 2013 saw a modest overall improvement in farm incomes, but with significant variations between sectors, according to AIB in its latest edition of its farming newsletter, Agri Matters. During 2013, farmers generally saw high product prices but also high input prices with input usage, particularly feed, also up. AIB agri-strategist Michael Dowling said: ‘2013 was truly a year of two halves for Irish farmers. Thankfully, more favourable weather conditions and strong product prices in the second half of the year
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enabled many farmers to recoup some of the increased expenditure incurred in the first half of the year. The mediumto long-term outlook for the sector is positive.’ Agri Matters is available in AIB branches throughout the country and also online at aib.ie/farming
15
Teagasc researching automatic milking systems A STUDY is currently being conducted at Teagasc Moorepark to determine the feasibility of integrating automatic milking with cow grazing. The system has 70 spring-calved cows of Friesian, Jersey-Friesian cross and Norwegian Red breeds. In an automatic milking system a robot undertakes the manual work traditionally associated with milking a herd of cows. The system is set up to guide individual cows to come to a milking stall on a voluntarily basis on up to three occasions per day. An average milk yield of 4,222 litres and milk solids yield of 369 kilograms per cow was achieved during the 2013 lactation. Even though 34% of the herd were first lactation cows, this level of milk production is still comparable with a large proportion of Irish dairy farms. The average number of milkings per day was 104, ranging from 70 to 123 per day in the March-to-August period. The average number of milkings per
cow per day was 1.8, ranging from 1.6 to 2.1. An average milk somatic cell count of 152,000 cells/ml was observed, while average total bacterial counts were at 10,000 cells/ml in the same time frame. Viability According to Dr Bernadette O’Brien, who is leading the project at Moorepark: ‘The economic viability of automatic milking systems will determine how widely the technology will be adopted. A major challenge with automatic milking currently is the high capital cost, but the concept of combining automatic milking and cow grazing has potential advantages, which could have a positive impact
on the dairy industry in Ireland in the long term. These include reduced labour input; farmer time to focus on management tasks as opposed to manual labour input, ability to expand cow numbers on fragmented land bases, and increased knowledge of cow performance data to use as a management tool.’ However, much research needs to be done to establish if the concept presents a realistic alternative to conventional milking systems on dairy farms. The fact that cow grazing systems have not been well adapted to automatic milking has led to a decrease in grazing on farms with automatic milking across Europe. ‘This is an undesirable trend, since
grass-based systems of animal production are becoming increasingly competitive. Allied to this is the positive impact on milk quality and reduced environmental footprint associated with increased quantities of grazed grass in the diet, as well as increased animal welfare standards,’ said Dr O’Brien.
The robotic milking system can be viewed at an upcoming Teagasc open day for all dairy farmers at the Moorepark research farm in Kilworth, County Cork at 10am on Wednesday, April 9th.
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16
West Cork Farming
Mark Harrington with his father, Kevin, at the family farm in Allihies. (Photos: John Eagle)
Allihies man determined to pursue passion for farming First wheelchair user to do Darrara agricultural course BY CAROL GILBERT MARK Harrington is an exceptional young man with a mission. He has a passion for farming and is currently on a home farm placement for three months, part of his first year of a certificate in agriculture Level 5 course
at Clonakilty Agricultural College, Darrara. Aged 26, Mark, from Allihies, Beara, is one of 90 on this course. His eyes light up and he smiles as he talks about
his aspirations to gain his own herd number. He bought his first heifer when he was 17 and sold the calf, ‘George’, at the mart. In fact Mark now has three cows and had been to the mart twice during the week I met him.
17
West Cork Farming Mark’s passion for farming has involved all his family. He was the driving force behind the family’s purchase of land which became available adjacent to their own farm. He could see the land’s potential to improve the family’s farm and is now in the process of reclaiming it. His determination to be involved in farming sees him help in the agricultural contracting business his brothers Alan and Brian run during the summer. He takes phone calls and accompanies his brothers wherever he can. Mark Harrington is a trailblazer and what makes his achievements more exceptional is that he has CP, cerebral palsy, and he is a full-time wheelchair user. The youngest of five, Mark’s brothers are Alan, Brian and Donal and his sister Claire is the eldest. His dad is Kevin and his full-time carer is his aunt Eileen. Sadly his mum, Mary, passed away in 2005. He attended Cahermore National School and Scoil An Croi Ro Naofa, Castletownbere, where Paul Stevens was a teacher. As a teenager Mark attended Beara Community School. Mark and Claire both speak of Paul Stevens and the late Pearse Lyne as tremendous influences in Mark’s life as was Mary JL O’Sullivan. From 2007 Mark became a client of CoAction West Cork and spent six years doing more practical work. He also completed foundation courses with CoAction, including drama. Mark loves all types of sport and is a two-time allIreland wheelchair bowling champion. Changed life But it was the offer of a computer course which was to change his life in a huge way.
accessible toilet. Really everything fell into place.’ Mark would also like to thank Liam Cahill for driving him on his day off. ‘I was so concerned about Mark in the first few days he started the course,’ explains Claire. ‘But he has had great support from everyone at Darrara College, and also great support from Mary O’Grady, Kay and all the marvellous staff at Teach Cairde, COPE’s Clonakilty Hostel. He has made great friendships through this.’ Mark’s volunteers at college are Sonia Ann and Julie from 9.30am to 12.45pm. Two CoAction staff, Geraldine and Mary, take over from 12.45 to 4pm and do his tea. His study and homework are done from 7 to 9pm and Mark has physio from CoAction staff. Flourished ‘As a person, Mark has just flourished since starting the course,’ continues Claire. She adds proudly, ‘His exam results are excellent.’ Mark Harrington is the first person in a wheelchair to do this course. It is a two-year course and whilst academically he could complete it in two years, the practical work will add a further year. The practical part of the course entails attending five farm-related events such as the ploughing or shows and writing reports on them. Mark is not alone as other students take three years to complete the course. Claire says, ‘Mark is looking forward to going back to college at the end of April. He is amazing and has made us so proud. We would like to thank everyone who has come on board to help Mark do what was beyond our wildest dreams – enable Mark to follow his dream in life.’
Mark with two black lambs and the mother ewe in the family farmyard.
Mark takes up the story. ‘I didn’t want to do a computer course so I asked Conor McAtasney of CoAction to see if there was anything else farming-related I could do. Conor came back to me a few weeks’ later and told me about the agricultural course at Darrara College. Una Ní Charra took me to meet the principal and see the college. I applied there and sat the entrance exam, which I passed with no problem.’ Claire explains, ‘It was all systems go from there on in. CoAction met with the COPE Foundation, Clonakilty, in a bid to get suitable accommodation which they have kindly provided for Mark. Mark needed transport so he picked a Fiat Diablo wheelchair van through DoneDeal. ie and his brothers drove up the country, checked out the van for him and brought it back. ‘The Irish Wheelchair Association helped him with a driver, Mary, for six hours whilst Mark was in college. Darrara College has installed ramps and an
Mark Harrington herding cows from his wheelchair at his farm on the Beara Peninsula.
18
Grassroots outsider
West Cork Farming
IFA deputy president Tim O’Leary on family, farming and the need to stick together
Tim O’Leary pictured on his farm at Carrigrohane
19
West Cork Farming of all agricultural production in the country. The new president of the IFA, which has 80,000 members, is Eddie Downey from Meath. Born 55 years ago and reared at Woodside, Carrigrohane, looking out across the lovely valley at the rear of the farmhouse, Tim pointed to his mother’s home place in Dromin, Blarney, and his father’s in Springmount, Carrigrohane.
BY LEO McMAHON ‘I WOULD like farmers to see the Irish Farming Association (IFA) as part of their business,’ says its new deputy president, Tim O’Leary from Carrigrohane. His success in the election in December, in which he outvoted JJ Kavanagh from Wexford, means that he is the first deputy president from Cork in 30 years, the previous one being Donal Cashman from Glanmire. He was also the only candidate among those for president and deputy president, from Munster and Co Cork, the latter of which accounts for 25%
Family And as the new deputy president of the IFA spends the next four years travelling the country as deputy president of the IFA, the task of running the family dairy farm has been passed on to his 23-year-old son Colm, who has a degree in dairy business from UCD. ‘Colm came in the door last September to take over and I went out the door to start campaigning’, said Tim. Colm is assisted on the farm parttime by his brother Diarmuid (25), who has Down Syndrome. Another brother Philip (24) is a lieutenant in the Irish Army, and Julie (28), who has a disability, has a degree in psychology and a masters in journalism, works in Cope Foundation and writes a weekly column in the Evening Echo every Wednesday. Outside of farming, Tim O’Leary said he loves reading, going to matches – especially the Cork hurlers – and
travelling, one of his last holidays being to California last July, just before he decided, somewhat belatedly, to contest the IFA election. Tim, who has 35 years’ experience in farm organisations, pointed out that there is pedigree. ‘My grandfather and namesake was a founding member of the IFA and my father Denis was a founding member of Ballincollig Macra na Feirme so all my life I’ve been involved in farming activism. 1966 march ‘I remember as a child going with my father to Victoria Cross in 1966 to meet up with Rickard Deasy and the guys from Bantry and West Cork who marched into the city, and later getting a double decker bus ride back. ‘I stayed at home after the Leaving Cert and was gung-ho to go farming on what was a mixed enterprise growing a lot of crops, cutting silage for others and it was all action. But I remember one day in 1976, to my eternal credit, my mother Lil telling me: “You’re not staying down in that yard on your own. Your cousin (Michael Hourihan) is chairman of Ballincollig Macra. Go away over and join it.” ‘I did and that’s where I went on to meet my wife to be, Katherine, who was training at the Munster Institute, Model Farm Road, to become a farm home management advisor.’ Indeed, Katherine, a native of Co
Tipperary, a former all-Ireland Miss Macra winner and columnist in the Farmers’ Journal, is a huge support for Tim. She herself teaches at Our Lady of Good Counsel Special National School, Ballincollig. Elected Over the years, Tim O’Leary was elected to various positions in Macra and has been a member of the IFA since 1983, serving as county chairman and PRO, chairman of Cork Liquid Milk Producers and on the national animal health committee as well as being on the IFA national council and executive for over ten years. He is currently a member of the national farm business committee. With Dairygold, he serves on its general and regional committees, is a board member of the Irish Farm Accounts Co-operative (IFAC) and vice chairman of Cork Marts’ Bandon Advisory Committee. ‘During my four years as IFA county chairman, I spent three weeks on the picket line in the beef blockade in 2000 and I learned lot,’ said Tim. ‘The IFA is basically a lobby organisation dealing with the bodies that interact with farmers and their livelihoods and income, and to an increasing degree rural communities. These include the departments of agriculture and finance, the EU, county councils and the Revenue Commissioners.’
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Protest Speaking just days ahead of a protest outside Minister Simon Coveney’s office in Dublin about farmers being blackguarded about beef prices in meat factories, Tim said the IFA went to the media to raise attention and get a response to pressure, the same as trade unions and others would do. ‘We respond to farmers’ needs and a hobby horse of mine is that the organisation is a democratic one governed from the bottom up rather than from the top down,’ said Tim, who described himself as a grassroots candidate and outsider in last year’s election. ‘That feeds in an issue that really bothers farmers right now, how they are inspected for schemes and regulations and on that we’re just beginning to negotiate a new charter of rights and that will take up a lot of time in the coming months. ‘The fact there has to be a level of inspection regarding the single farm payment and the nitrates directive is accepted but the way some of these are carried out isn’t. There needs to be clear understanding between all parties as to where each stands because that will make it easier for everybody. Farmers need consulting before bringing in new rules’. On a positive note, Tim said the IFA was working with the government and
other agencies on Food Harvest 2020 with, for the first time, a cohesive plan with long-term targets and reviews to give a focus and direction for the industry and a means to clear road blocks. One such example was ensuring farmers get a realistic price as ambitious targets for beef production are set, and bearing in mind that at present there is a big price difference (almost €1 per kilo) between what a farmer in the UK gets for beef compared with that received by his or her Irish counterpart. Concerns Although the second half of 2013 (following the fodder crisis earlier in the year) was very good, said Tim, fertiliser and other costs linked to oil continued to be a cause of concern, especially in the dairy sector. ‘There’s a great buzz with milk quotas due to end in 2015 but it has to be done right as part of Harvest 2020 because in trying to meet a target of 50% increased output, it will be an opportunity missed if it doesn’t make more for the primary producer, the farmers. Overall, farmers need a higher percentage of the retail price for food.’ As spring slowly begins, most stock still isn’t out due to the wettest winter ever and as Tim pointed out, it costs twice as much to feed inside as outside. Tillage farmers, he added, had
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a great harvest but the prices were a bit weak. Tim believes the discontinuation of REPS is a retrograde step and says a new targeted environmental scheme is needed. There’s also need to keep young people farming by encouraging early transfer of land and an early retirement scheme. Importance Stressing the importance of the IFA and other bodies, he stated: ‘Agriculture won’t do much for the cities but is hugely important for towns and rural areas. Just look at places like Bandon, Skibbereen, Macroom, Mallow, Mitchelstown and Midleton. Take the Tim O’Leary agri-related businesses, services and activity (eg marts, coops, meat factories, vets) out of these and you’ll be scratching around to find anywhere to generate business and income. ‘The IFA is part of my business outside the farm gate and farmers should give that as much attention as inside the farm gate because it’s what defends us. It’s our trade union. The
organisation, the structure is there and the more farmers get involved – which doesn’t involve all that much – the more that can be achieved for the sector’, said its dynamic deputy president, who is deeply committed to protecting the family farm, working hard for fair incomes and ensuring the sector, the same as any other business, gets respect from government and all agri-agencies.
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Sale and Transfer of Single Farm Payment Entitlements The recent agreement on the CAP Reform has brought to an end a period of uncertainty for Irish Farmers. The announcement of The Basic Payment Scheme to replace the Single Farm Payment Scheme and the implementation of the Internal Convergence Model to gradually redistribute funds between those farmers who hold high and low value entitlements was well flagged but the detail was missing until now. On examination of this detail it became apparent that entitlements held by non farming landowners who leased their entitlements in 2013 would be lost unless the ownership is transferred to a farmer who was active in 2013. It is estimated that 6,000 entitlement holders will be effected by this charge and left with no option but to dispose of their entitlements before they become worthless. There is a short time frame to arrange the sale/transfer of the entitlements with the deadline of the 15th of May looming close. The Department of Agriculture intends writing to those effected in order to make them aware of the position. As with any transfer of property, tax will be a consideration. In the case of the transfer of entitlements we will need to consider VAT, Capital Acquisitions Tax and Capital Gains Tax. The transfer of entitlements is exempt from Stamp Duty. It is impossible to know what effect the forced sales of entitlements will have on their market value but by way of example I will use a value of twice the annual payment. Value Added Tax Assuming a person has no other activity which is potentially liable to VAT then the sale of entitlements will not be liable to VAT unless the sale proceeds from the entitlements exceeds €37,500 in any 12 month period. It is important to note it is any 12 month period and not the calender year. VAT would not normally arise in the case where no consideration is received e.g. gift. Where VAT is payable, it is payable on the full proceeds at a rate of 23% and not limited to the excess over the threshold.
Capital Acquisitions Tax Where entitlements are transferred for no consideration or for a consideration less than their market value the recipient is deemed to receive a gift. This gift will be the difference between the market value and the consideration received. There are tax free thresholds which are dependant on the relationship between the parties and an annual gift exemption which must be exceeded before CAT is payable. If these thresholds are exceeded the balance is taxable at 33%. Entitlements are deemed to be Agricultural Property for the purposes of the Agricultural Relief hence the taxable value of the gift may be reduced further if the other conditions of the relief are met. Also if CGT arises on the transfer then it can be offset against any CAT liability. Capital Gains Tax The tax that the majority of people transferring or selling entitlements will be exposed to is CGT. CGT will be calculated on the difference between the current market value and the base-cost. The base-cost will normally be the value at the date they were received (unless received by way of gift from a spouse). Entitlements which were built up personally through farming have zero base-cost. The rules for transactions between Connected Parties and Unconnected Parties can differ and even the persons who you are deemed to be connected to can differ from transaction to transaction. In general for CGT purposes, you are connected to your relations (excluding cousins) and your spouse’s relations but all others are unconnected. Where the entitlements are disposed of to a connected party, CGT is computed on the market value of the entitlements and not the consideration, if any, received. The rate of CGT is currently 33% with an annual exemption of just €1,270 per person. Please see example below of a simplified CGT computation:
Annual SFP €8,000.00 Est. Market Value €16,000.00 Less: Base-Cost €0.00 Less: Annual Exemption €1,270.00 Taxable €14,730.00 Tax at 33% €4,860.00 Where due, this tax is payable on or before the 15th of December for disposals made in the period January to November. Where the disposal of entitlements is made to a unconnected party and it is a deal made on commercial terms (“a bargain at arms length”) then the CGT is calculated on the consideration actually received or agreed to be received.
Michael Fitzgerald is regional taxation manager for FDC Tax Department Ltd. in the West Cork region. He is a Chartered Tax Adviser and member of the Irish Tax Institute. He has specialist tax knowledge of succession planning and property transactions including farm transfers. If you wish to discuss any issues with Michael he can be contacted on 023-8841744.
The sale or transfer of entitlements can qualify for retirement relief when they are disposed with farmland sufficient to claim the entitlements and the disposals are at the same time and to the same person i.e. the number of hectares disposed should at least equal the number of entitlement. This article is intended to be an introduction to the issues and expert advise should be sought before proceeding with any transaction.
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Call for grant aid to rectify septic tanks Half of tanks have failed inspection
BY LEO McMAHON ALMOST half of the septic tanks inspected to date in Co Cork under the national wastewater treatment systems national inspection plan have failed to comply with the standards laid down by the Department of the Environment. On the agenda at the recent meeting of the county council was a motion from Cllr Kevin Murphy (Fine Gael) calling on Minister Phil Hogan to roll out a full national septic tank grant aid scheme as a matter of urgency. Last year, the government made registration of septic tanks compulsory and imposed charge for same. The Southern Star received a document ahead of circulation to a meeting of the county council’s southern committee stating that at the request of the Environmental
Protection Agency, 99 septic tanks were due for inspection by council officials up to June 30th. Of 25 inspected to date, 12 were deemed non-compliant representing 50% in West Cork, 56% in North and 42% in South Cork and all received advisory notices. Three of the 12 systems were identified with major non-compliances and required significant work. Some inspections were deferred due to inclement weather. Cllr Murphy said there was a massive number of other septic tanks not on the inspection list that may be in need of an upgrade and he made the case for owners, who were only more than willing to try and rectify matters, being able to seek a grant of up to €4,000 or 80% of the cost. Such a move would boost contractors begging for work, generate jobs and
benefit the environment. He added that 99 was a tiny amount for a county the size of Cork. Cllr Michael Creed (FG) seconding, said it was all about improving water quality. Begging bowl Cllr Alan Coleman (Fianna Fail) supported the motion but contended it was a climb down because when debated 18 months ago Cllr Murphy had said a grant scheme was coming in and now he wanted the council to go with a begging bowl to the minister. Cllr Murphy strongly rejected this. Cllr Aindrias Moynihan (FF) said a grant scheme should have been put in place at the start but instead the minister had to be dragged kicking and screaming to get the whole process moving and enable people who had a problem to deal with it. Cllr Murphy disagreed.
Cllr John O’Sullivan (FG) repeated his concern about double standards pertaining in that those who came on the list for random inspections qualified for the grant while those detected by other means did not. This, he contended, was inequitable. In agreement, Cllr Donal O’Rourke (FF) said he had a similar motion on the issue to Cllr Murphy 18 months ago. Cllr Noel Collins (Independent), Mayor Noel O’Connor (FG) and others supported the motion but Cllr Gerry Kelly (FG) and Cllr Murphy pointed out that while there was a failure rate of up to 50%, most were for minor defects which could easily be fixed. Deputy county manager Mr Declan Daly said the failure rate of almost 50% was also the national average. Cllr Murphy’s motion was adopted.
• ICMSA has represented Cork farmers at local, national and European level for over 60 years with an emphasis on always finding the solutions to their problems. • ICMSA are the acknowledged experts on analysing milk prices and identifying trends in the Dairy Sector. • • ICMSA remains dedicated to the viability and prosperity of the family farm – we are the Family Farm organisation Chairman of West Cork ICMSA: Tom Wilson, Enniskeane, 087-6106907 Vice Chairman of West Cork ICMSA: D J Keohane, Timoleague, 086-8566473 Secretary of West Cork ICMSA: Eileen Calnan, Clonakilty, 086-2034998 West Cork Members of ICMSA National Council: Joe Burke, Bantry, 086-2705589, William Collins, Drinagh, 087-9309071, Sean Griffin, Timoleague, 087-2462451, Donal Harte, Lislevane, 087-4106132, John O’Mahony, Bantry, 086-8500952, Michael P.O’Sullivan, Roscarbery, 086-8577524, Stephen Shorten, Enniskeane, 086-2479436, Tom Wilson, Enniskeane, 087-6106997, John Wycherley, Enniskeane, 086-8231803, Con Young, Drinage, 087-7618873 Or contact ICMSA Area Development Officer, Edward O’Sullivan, 087-9980727 or ICMSA Head Office: John Feely House, Dublin Road, Limerick, at (Tel) 061-314677, (Fax) 061-315737 or info@icmsa.ie Please also look at our website at www.icmsa.ie
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Farmers being scapegoated for water pollution, claims Wilson RURAL dwellers, especially farmers, are being scapegoated for any perceived lapse in water standards, according to West Cork ICMSA chairperson Tom Wilson. Mr Wilson noted the most recent Environmental Protection Agency (EPA) report which found that 44 of 170 large urban areas surveyed did not comply with EU quality standards. The report made for ‘sobering reading’, he said, and made a mockery of the level of focus that had been placed on septic tanks as a source of water pollution. Instead, authorities should focus on the defects and systematic shortfalls presided over by local authorities. The Enniskeane farmer said: ‘We’ve had to listen for years about how we were responsible for the measured degradation of water supplies and how if we weren’t willing to “do the right thing”, then by God, it was going to be done for us. ICMSA got tired a long time ago of having to listen to vague accusation that farmers were
damaging water quality from local authorities that themselves hadn’t done a blessed thing to maintain water quality in their own urban or suburban areas. We have long suspected that this was a tactic designed to deflect attention away from what in many cases was incomprehensible inaction by the local authorities, who were content to use farmers as some kind of environmental bogeyman.’ The latest EPA report must signal the end of this ‘lamentable tactic’, he said. Local authorities must find the ‘real culprits’ and ‘stop posturing’ and implying that the blame lies elsewhere. ‘The next time we farmers are told what we’re doing wrong, our attitude must be “Physician, heal thyself”, concluded the West Cork ICMSA chairperson.
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Large attendance at Darrara open day BY JOHN SEXTON UPWARDS of 200 Leaving Certificate students from several secondary schools in County Cork and many from other parts of Munster, attended an open day at Clonakilty Agricultural College (Darrara), on Tuesday, March 12th, where they got a briefing on the various courses operated at the college. They were addressed in the lecture theatre by acting college principal Keith Kennedy, who outlined the various Fetac courses at Level 5 and Level 6. Level 5 is a one-year course for the certificate in agriculture, and is regarded as the introductory course for young people who wish to make their career as farmers or for those seeking employment on farms. Graduates are eligible to progress to the Level 6
specific-purpose certificate. While there are employment opportunities at farm level, students generally progress on to the Level 6 specific-purpose award in agriculture, or a Level 6 advanced certificate in agriculture which allows them to benefit from the various schemes and reliefs available to young trained farmers. The course consists of 22 weeks’ work in the college and 12 weeks on an approved training farm. Students acquire skills and knowledge relating to soils, plants, animal and crop production, machinery, the environment, farm buildings, personal development, and health and safety. About half the course consists of practical skills training. Typically, students spend half of each day on practical instruction on college farm units and workshops and half at classroom work. On successful
completion of the course, students are awarded the Fetac Level 5 certificate in agriculture, but this does not meet the training requirement for stamp duty exemption. There is no minimum educational requirement, but those that have completed the Leaving Certificate are likely to benefit from the course. Applicants must be 17 years on January 1st following entry to the course, which starts at the end of August and runs to the following May. College links Dealing with the structure of the college farm, Keith Kennedy said that the cow herd is divided into five groups with clover in every second paddock. The college has significant links with Moorepark, where research is carried out on the college farm. This link, he said, ensures that the teachers and students are exposed to the most up-to-date research findings through Teagasc and research staff. The college
also has close links with CIT and Tralee IT, to where many students graduate. Finally, he said, the location of the college in the south-west of Ireland means there is a critical mass of grassbased farming that cannot be matched anywhere in Ireland. Shane McCarthy, a former student from North Kerry, spoke about his work placement trip to New Zealand. He described how he was collected at the airport and taken to the farmer, who had 700 cows. The work was hard, he said, but he was well looked after. He talked of how his work involved spreading fertiliser and slurry, how CIT emphasised the business side of farming, how the course was very detailed in relation to animal diseases, and how there was much study of water contamination, with emphasis on food science and dairy science. After the formalities the students were taken on a tour of the farm, further helping them envisage the reality of a year at Clonakilty Agricultural College.
Meeting one of the spring lambs at the Clonakilty Agricultural College open day at Darrara were McEgan College, Macroom, students Tara O’Riordan, Ciara Buckley and Peg Cronin. (Photos: Denis Boyle)
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Mount St Michael, Secondary School, Rosscarbery, students Liam O’Brien, Aoife Jennings, Sam Kingston and Niall O’Sullivan attending the Clonakilty Agricultural College open day.
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Excellent standard of
Padraig Walsh measuring out his bank at the Kilbrittain ploughing match on Sunday.
Kevin O’Riordan, Kilmichael, pictured at the annual Kilbrittain ploughing match.
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most recent available EVEN allowing for average EU prices for the recent dip in the those two commodities, Fonterra auction, current reported for March 9th, commodity prices remain showed a slight recovery very strong by historical for butter, and would have standards, IFA national delivered a gross milk price dairy committee chairman equivalent of just under Sean O’Leary has said, 46c/l before processing reflecting generally higher costs.’ global production costs as Mr O’Leary said farmers well as strong international demand and low stock should take a ‘balanced Sean O’Leary, IFA view’ of the fortnightly Fonterra levels. dairy chairman. auction results. The volatility of The most recent Fonterra global dairy market prices is currently auction result saw a 5.2% price restricted by robust demand and low reduction compared to the previous stocks, despite good output growth, auction. However, the North Cork he said. ‘While markets may ease later farmer noted that ABARES, the in the year, there are no reasons to Australian government’s agricultural expect major milk price adjustments research body, predicted strong dairy in 2014, and now ABARES is indicating prices into 2014/15, due to robust that these market dynamics could demand throughout Asia and China in particular. continue to underpin dairy prices into He said: ‘The slightly reduced butter 2015,’ he said. and SMP average prices in this Fonterra ‘The IFA continues to urge co-op auction, allowing for today’s exchange boards to hold their milk price for much rate with the US dollar, would return of, if not all of 2014, and to announce a gross Irish milk price equivalent of their pricing policy sooner rather than later to help farmers plan,’ he added. 44c/l before processing costs. The
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West Cork Farming
ploughing at Kilbrittain
KILBRITAIN Ploughing Association was blessed with a very dry day and ideal underfoot conditions for their 31st annual ploughing match held on the lands of Caroline and Bernadette Twomey, Clonbogue, Kilbrittain on Sunday last, March 23rd. There was an excellent display of ploughing from close on 40 competitors and the event was very well attended. At the prize-giving ceremony held at Kilbrittain Hall later that evening, Caroline and Bernadette Twomey presented the Gerard Twomey Memorial Cup in the memory of their late father and mother, who were active members of Kilbrittain Ploughing Association. The cup was presented to the winner of the confined hydraulic vintage class and was won for the first time by Paddy Holland of Ardfield.
Results
Senior: 1 Jim Grace 102; 2 Barry O’Sullivan 101; 3 John Murphy 97; 4 John A O’Donovan 96; 5 DJ Keohane 95. U28: 1 Kieran Coakley 99; 2 Pascal Twomey 76. U21: 1 Gerard Kirby 95. Intermediate: Jimmy Nyhan 95; 2 Kevin O’Driscoll 92; 3 Mervin Buttimer 88; 4 Denis Murphy 86; 5 Charles O’Sullivan. Standard three-furrow: 1 Matthew Coakley 81; 2 Kevin O’Riordan 75; 3 Jason McCarthy 74.
Parish class: 1 Con McCarthy 65. Loy: 1 Adrian Grace 143. Open reversible: 1 Liam O’Driscoll 109; 2 Gerard Coakley 106. Standard reversible: 1 Dan Hurley 90; 2 Padraig Walsh 88. Vintage hydraulic: John Keohane 161; 2 Paul Lynch 155; 3 Sean Ryan 147; 4 John O’Neill 146; 5 Michael Walsh 143. Confined hydraulic vintage: 1 Paddy Holland 132; 2 Cian O’Driscoll 130; 3 Ite Wiersema 113. Horse class: 1 John O’Donovan 138.
Macroom will hold its ploughing match this Sunday, March 30th, and Clogagh on Sunday, April 6th.
Caroline and Ber Twomey, on whose lands Kilbrittain ploughing match was held on Sunday, pictured are Finbarr Twomey, Teresa Barrett, Mairead Crowley, Rose Deane and Joe Crowley. (Photos: Donie Hurley)
New regional veterinary lab charges ‘another stealth tax’ claims ICSA ICSA president Patrick Kent has labelled the new regional veterinary laboratory (RVL) charges as ‘just another stealth tax on farmers.’ From March 31st, there will be changes made to the charges for testing of animals at regional veterinary labs. The Department of Agriculture argues that it is bringing in these changes to bring the existing RVL charge in line with overall disposal costs at knackeries. Furthermore, RVL post-mortem fees will now be subject to VAT at 23%. In the case of an adult cow, the new VAT-inclusive RVL charge to cover post-mortem and disposal (€68.72) will be almost three times that of the existing cost (€23.35). Mr Kent said, ‘The new RVL waste disposal charge is effectively another stealth tax on farmers which arises from the department no longer wanting to absorb the cost of animal
disposal. I have serious concerns that some farmers will now be disincentivised from bringing animals to RVLs, which could reduce the important animal health information service that the RVLs provide.’ Mr Kent was also critical of Revenue’s decision to apply the 23% VAT rate to laboratory testing, saying that the change was ‘unnecessary and would inevitably eat further into the bottom lines of Irish livestock producers. Farmers have seen an array of increased charges from state agencies over recent years, all of which undermine the viability and competitiveness of Irish farming.’
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Farmers being hit with increased animal health costs, says IFA FARMERS have been left exposed to increased animal health costs and a lack of support due to decisions taken by the Department of Agriculture, according to IFA animal health chairman Bert Stewart. Mr Stewart said two issues have come to light which highlight the lack of support and joined-up thinking from the Department of Agriculture and the impact it will have for farmers. He said at the recent BVD implementation group meeting, members were informed that due to the retention levels of Pi animals on farms, farmers who complete their three years on tissue tag testing this year will not be allowed to move to lower level monitoring. This is a ‘fundamental change’ to the programme and has the potential to ‘significantly increase’ costs, he said.
‘International experience gained from similar programmes has shown a clear link between the level of support provided and the early disposal of Pi calves’, said the IFA man. ‘The failure of the minister to recognise these concerns and to provide an adequate and meaningful level of supports for farmers identifying Pis has resulted in this situation arising.’ Mr Stewart called on Minister Simon Coveney to provide the levels of financial support to farmers which is necessary to ensure the ‘prompt removal’ of all Pi animals from farms. This must include retrospectively
increasing the payment already made to those who have disposed of their animals and payments for farmers who have to complete an extra year of tissue tag testing as a result, he said. Cost increase The issue is further compounded, he added, as a result of the decision taken by the Department of Agriculture in relation to the fallen animal collection scheme, which has resulted in the cost of collecting calves to increase to over €30 in some areas. The IFA chairman said the proposal by the minister to increase the fees
Cork bucks national trend with land price increase Cork topped the table in 2013 in terms of land offered, with a whopping 10,316 acres brought to the market, a huge 53.3% hike from 6,729 acres in 2012. The biggest sale was a 374-acre farm situated at Ballymacus and Rathmore, Kinsale, sold in a private deal for a figure believed to be in the region of €3.2m. It was a different story in the rest of the country, with land prices falling by 5.6 per cent nationally to €9,400 per acre. Nationally, supply has recovered to pre-recession levels, with almost 75,000 acres offered for sale in 2013. Dublin had the highest average at €16,115 per acre followed by Kildare
at €13,114 per acre and Louth at €12,628 per acre. Leitrim had the lowest average at €4,156 per acre followed by Mayo at €5,145 per acre and Sligo at €5,879 per acre. The highest percentage price decrease – 26.1 per cent – occurred in Tipperary. The market is dominated by executor and receiver/NAMA sales, according to the Journal, which said there is ‘still strong demand for land from farmers, along with increased interest from ex-pats, overseas customers, and a new type of buyer – returning Irish emigrants’.
charged by the Regional Veterinary Laboratories in order to align them with the increased knackery disposal cost of fallen animals is ‘astounding.’ He warned: ‘This latest move aligns the service provided by the RVL structure to that of knackeries and ignores the needs of farmers in this area. The proposal by the minister to increase the fees will result in farmers not being in a position to avail of this often crucial service and could result in serious disease issues going undetected’.
THE average price of land in Cork in 2013 was €11,703 per acre, a slight increase on the 2012 average of €11,617, according to the Irish Farmers’ Journal’s annual survey of land prices.
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29
West Cork Farming
Irish livestock ‘blocked out’ of UK market
M NEW FRO IFA national livestock chairman Henry Burns.
IFA national livestock chairman Henry Burns has called on Minister for Agriculture Simon Coveney to take immediate action to address the beef sector issues and meet with his Northern Ireland counterpart, Michele O’Neill, to remove the ‘artificial blockages’ being put in the way of the live export trade to Northern Ireland. The live trade to the North and Great Britain is a major issue, said Mr Burns. ‘Over 3,000 farmers protested outside the Department of Agriculture two weeks ago’, he said. ‘Livestock farmers are demanding Minister Coveney and Bord Bia engage with their counterparts in Northern Ireland and Great Britain as well as the major retail and processing groups and insist that Irish livestock are not blocked out of the market with artificial anticompetitive barriers.’ The IFA has held discussions with farming representatives from all across the UK on the current problems on beef prices and specifications, he said, and all were ‘very clear’ that the recent factory beef price cuts and ‘abrupt’ changes to specification were damaging confidence in the beef sector. ‘It is not acceptable that some factories are attempting to apply an uneconomic 400kg weight limit here and the same meat company dealing with the same retailers in the same market are operating a 450kg limit in other jurisdictions’, he said. Mr Burns said there are other specification issues such as final residencies periods ranging from 70 days down to zero and different requirements on the number of farm residences, but all of the beef is being supplied to the same UK market. The IFA livestock leader said both
processors and retailers in Ireland and the UK have to understand the grass-based production systems in Ireland and the smaller family farming structure, and appreciate that cattle have to move from breeding to weaning to fattening farms. He added that adjustments need to be made to the current in-spec requirement of four farm residences in the south in order to better accommodate the sale and movements of animals. In addition, he said the final residency requirement must be adjusted to accommodate the sale of finished cattle through the marts. Cattle prices Cattle prices remain at unacceptably low levels for winter finishers, he said, although there are ‘some indications’ that the market situation was improving, with prices in the UK and across Europe showing some positive movements. The IFA man said across Europe, prices remain stable with Bord Bia reporting prices for R3 bulls in Italy at the equivalent of €4.33/kg including vat. In France young bulls are at €4.06/kg and at €3.99/kg in Germany. Mr Burns said male cattle are making over €4/kg in the main markets across Europe. Given this, ‘factories should be well capable of restoring cattle prices to viable levels’, he said.
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30
West Cork Farming Advertiser’s announcement
Leading Dairy Demonstration Farm in Bandon Believe in Keeping Calves on Milk When Dealing with Nutritional Scours
K
evin Ahern, full time farm manager at Shinagh Dairy Farm in Bandon, Co. Cork runs a tight calving system. He leaves nothing to chance when it comes to calf scour and says the use of Rehydion Gel has an essential part to play in a smooth running calving period. Shinagh Dairy Farm is a newly converted dairy farm near Bandon in West Cork where the four West Cork Co-ops are the main shareholders. It is used to demonstrate best practice for solely run dairy operations that are increasing cow numbers and also beef conversions in line with expansion plans for Food Harvest 2020. We have a 12 week calving spread but hope to have 80% calved in 6 weeks.� It is a busy time for Kevin and he has extra help during the calving period. “Having a bad outbreak of scours is devastating, not just on the finances but also the stress it puts everyone on. We’ve had a few nutritional scours but since we’ve been using Rehydion Gel we keep scours at bay before it hits hard. The beauty of Rehydion Gel is that it allows us to keep the calves on their food. In my experience taking them off their milk is detrimental and things only go downhill from there.� Kevin’s herd is Friesian cross with Jersey’s and Norwegian Reds. Kevin pays great attention to ensuring that every calf is fed 3 litres of colostrum within 2 hours of birth. Heifer calves will get 3 feeds of colostrum within 24 to 36 hours. Making sure calves drink sufficient quality colostrum goes a long way to getting them off to a good
Manager says “Continued milk feeding also aids gut healing and provides natural antimicrobial actions and Animal Health Ireland recommends that nutritional scour calves are not deprived of milk. “ Shinagh Dairy Farm is a collaborative project which includes four West Cork Co-ops and Carbery Milk Products. The farm is approximately 80ha with a herd of 200 cows and is run solely by Kevin, except during the calving period when he uses casual labour. The objective of this farm is to provide leadership for farm expansion in line with the Food Harvest Report 2020. Shinagh Dairy Farm demonstrates how most expansion is likely to happen, both with single operator farms increasing farm numbers, along with conversion of beef farms to new dairy farms. Information will then be disseminated from Shinagh Dairy Farm for advising farmers through open days, publications, newsletters. For more information see www. shinaghdairy.ie
“We’ve had a few nutritional scours but since we’ve been using Rehydion Gel we keep scours at bay before it hits hard. The beauty of Rehydion Gel is that it allows us to keep the calves on their food�, says Kevin Ahern start and avoiding most scours. Calves are fed a good quality milk replacer, have access to hay and adlib water. Kevin is meticulous when it comes to hygiene in the calving shed. Calves are housed in pens of 8 where they stay until they are weaned. In this system hygiene is very important. Pens are washed down twice daily with disinfectant and beds cleaned out once a fortnight. No one else is allowed in the calving shed apart from me.� “Rehydion Gel works wonders if it is given at the early stage of nutritional scours. If I see a hint of a calf being off colour, they are
put Rehydion Gel straight away. Rehydion Gel is given using a throat syringe or neat out of the bottle in 40ml doses twice daily for 2 days. If you catch it early they are usually right after a day. Calves are kept on milk replacer as Rehydion Gel doesn’t inhibit milk clotting and indeed aids digestion, so it is ideal to help the calf recover rapidly from scours with little disturbance to his routine and that of the whole calving system. Efficiency is a key to running our 200 dairy herd system going forward and we need as little disturbance as possible.“
“I always have a half dozen bottles of Rehydion Gel at the ready. It’s an essential product now for me during the calving period. It’s amazing stuff. Starving a sick animal was never the ideal situation. I’m delighted to have found Rehydion Gel which can be fed diluted in milk or milk powder or in the suckler situation can be administered neat down the throat. A sick calf gets the immediate benefit of electrolytes in the gel yet still has milk as source of energy for weight gain.� Denis Canniffe, PharVet’s Munster Territory
Rehydion Gel is available from vets, farm supply shops and co-ops. Rehydion Gel is distributed by Interchem Ireland Limited. For further information, please phone 01 451 8959 or visit www.interchem.ie
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