Agri-Business
Agri-Business Sector
Our dedicated Agricultural Business team possesses deep knowledge and insight into the unique challenges and opportunities within the agricultural sector. We understand the critical issues that impact profitability and growth, from crop management and livestock care to market trends and regulatory compliance.
Our expertise allows us to provide tailored advice and solutions that help maximise returns for your agribusiness. We work closely with you to develop strategies that enhance efficiency, reduce costs, and optimise resource allocation.
With our support, you can navigate the complexities of the agricultural industry and achieve sustainable success.
Maximise your Agribusiness Potential.
Our dedicated Agricultural business team has a deep knowledge and insight into the issues that make the difference in maximising the returns for an Agribusiness.
We are also conscious of the relevant issues in planning for handing over a successful family farm from generation to generation and how this might be done Tax-efficiently and seamlessly. Our Accounting team is on hand to deal with the annual compliance obligations and your routine accounting requirements.
As we are located in the heart of Ireland’s agricultural landscape at BCA, we have deep knowledge and insight into the issues that make the difference in maximising the returns for an agribusiness.
With our support, you can navigate the complexities of the agricultural industry and achieve sustainable success. Let us help you drive growth and long-term profitability. revision
Recent legislative changes have also been introduced to encourage the expansion of farming enterprises and the availability of farmlands to young progressive farmers. At BCA, we can guide you through the implications of farm partnerships and the Tax credits and reliefs available for letting farm holdings be inCorporated. As the general economic recovery takes hold, more and more agribusinesses are finding it difficult to resolve the conflict between the income tax burden and meeting day-to-day cashflow commitments.
At BCA, we can guide you through the pros and cons of incorporating your agribusiness and help to provide insight into the opportunities and pitfalls that may arise from incorporation.
A key component of any successful agribusiness is the availability of appropriate finance to facilitate capital investment or expansion.
Do I need a specialist accountant for my farm in Ireland?
The short answer is yes, and the difference between a general accountant and a specialist agri-business adviser can be measured in tens of thousands of euros over the lifetime of a farming business. Irish farm taxation is a distinct discipline, and there are reliefs, credits, and planning opportunities that a non-specialist is very likely to miss.
Farmers operate in a tax environment with its own set of reliefs, allowances, and compliance obligations, many of which do not apply to other types of businesses. Income from farming is assessed under Case I of Schedule D, which means it is based on actual profits as reported in the trading accounts. But layered on top of that are a series of agricultural-specific provisions that require detailed knowledge to apply correctly.
Stock Relief
Stock relief allows a deduction of 25% of the increase in the value of farm trading stock at the end of an Accounting period compared to the start. For young trained farmers, the relief is 100% for the first four years of trading. For qualifying members of Registered Farm Partnerships (RFPs), the rate is 50%. These reliefs have been extended to 31 December 2027. The cash value of this relief for a growing or stocking enterprise can be substantial.
Young Trained Farmer Relief
A Young Trained Farmer who meets the required agricultural qualification criteria and is under 35 years of age can claim full exemption from stamp duty (normally charged at 7.5%) on the transfer or purchase of farmland. Given the cost of land in Ireland, this represents a significant saving. Budget 2026 extended this relief to 31 December 2029.
CAT Agricultural Relief
Capital Acquisitions Tax (CAT) is charged at 33% on gifts and inheritances above the threshold. However, Agricultural Relief reduces the market value of qualifying agricultural property by 90% for CAT purposes, meaning the effective taxable value is just 10% of the market value. Both the donor and the beneficiary must now meet the Active Farmer Test (a change introduced in Budget 2025 with transitional arrangements to 2030). For a farm passing between generations with a market value of €1.5 million, the difference between applying Agricultural Relief correctly and missing it could exceed €400,000 in tax.
Retirement Relief from CGT
When a farmer sells or transfers a qualifying farm asset, Retirement Relief can eliminate or substantially reduce the Capital Gains Tax liability for individuals aged 55 to 70. The relief applies to transfers within the family and, to a lesser extent, to sales outside the family. The lifetime limits and age thresholds are periodically adjusted, making professional advice at the point of planning an exit or transfer essential.
Farm Restructuring Relief
Farmers who sell and purchase land as part of consolidating or restructuring their farm holding may qualify for relief from CGT on the transaction, provided Revenue issues a Farm Restructuring Certificate. This relief encourages consolidation and has been extended to December 2029 under Budget 2026.
Succession Farm Partnerships
A tax credit of up to €5,000 per year for five years is available for qualifying succession farm partnerships, arrangements designed to facilitate the structured transfer of a farm from one generation to the next while the farmer continues to farm. The successor must hold agricultural qualifications, be under 40 years of age, and hold at least a 20% profit share under the partnership agreement.
Capital Allowances for Farm Buildings and Works
Capital expenditure on farm buildings (excluding dwelling houses), fences, roadways, drainage, and land reclamation qualifies for capital allowances at 15% per year for six years and 10% in year seven. This effectively writes off the full cost over seven years, reducing taxable profits each year.
Farming income can be highly variable year to year, reflecting weather, livestock cycles, and market prices. Revenue permits farmers to average their profits over five years for tax purposes, which can significantly reduce the tax burden in high-income years. Managing this election correctly and deciding when to opt in or out requires careful analysis.
Farm payments under schemes such as the Basic Income Support for Sustainability (BISS), the Targeted Agricultural Modernisation Scheme (TAMS), and various ACRES payments have specific tax treatments. Some grants are taxable income; others fund capital expenditure and interact with capital allowance claims. Getting this right matters, and the landscape of available schemes changes with each budget cycle.
The most significant tax events in the lifetime of a farming business typically arise not from year-to-year income, but from transfers between generations. Agricultural Relief, Retirement Relief, Consanguinity Relief on stamp duty, and the succession partnership provisions all need to interact efficiently. Getting the sequencing wrong, for instance, meeting the donor Active Farmer test for CAT purposes, or structuring a transfer before the successor is old enough to hold their agricultural qualification, can result in substantial unnecessary tax.
BCA has a dedicated agri-business team with deep roots in the Midlands farming community. We work with tillage, dairy, beef, and mixed enterprise farms across Offaly, Laois, Westmeath, and surrounding counties. Contact us to discuss your farm’s tax position.
Agricultural Specialist
Our accounting team is on hand to deal with the annual compliance obligations and your routine accounting requirements.
Partner David is a member of Chartered Accounts Ireland and the Institute of Taxation in Ireland. With over fifteen years of working with small and medium-sized businesses, David has developed an extensive knowledge of accounts, Audit, taxation, company secretarial and business planning.