Farming had a strong year in 2025, with farm incomes up 49% and the beef sector leading the way. But for many families, the bigger question isn't this year's price, it's who will be farming the land in twenty years' time.
Budget 2027 has a clear focus on that question. The tax credit for bringing a successor into the farm is doubling, there's more help with farm safety, and a couple of VAT changes will put money back in farmers' pockets.
Here at Gilheany & co , we've gone through the farming measures so you can see what they mean for you and your family.
Passing on the farm: the succession credit doubles
A Succession Farm Partnership lets you farm alongside your chosen successor, often a son or daughter, under a registered agreement to hand over the farm in the years ahead. In return, the partnership gets a tax credit every year for up to five years.
From 1 January 2027, that credit doubles from €5,000 to €10,000 a year for every new partnership registered. Over the full five years, that's up to €50,000 in tax credits, compared with €25,000 today.
It's also getting easier to qualify. For applications made from 1 January 2027, the three-year holding period that applied until now is being removed, following a recommendation from the Commission on Generational Renewal in Farming.
If you've been putting off the succession conversation, this is a good reason to have it. Timing matters too: if you're close to registering, talk to us first, as waiting until January could mean the higher credit.
Safety and stock
There are still too many accidents on Irish farms, and the Government doesn't want cost to stand in the way of making them safer. The faster tax write-off for farm safety equipment is being extended by three years, to 31 December 2029, and 12 more items are being added to the list of equipment it covers.
There's also a saving on animal health. VAT on respiratory vaccines for livestock is coming down from 23% to 9%, which should take roughly a tenth off what you pay for them.
A higher flat rate addition
If you're not registered for VAT, you add a flat rate addition to sales to VAT-registered buyers like marts, factories and co-ops, to make up for the VAT you pay on your own costs. In 2027, that addition rises from 4.5% to 4.8%, which the Government says will fully compensate flat-rate farmers for the VAT on their inputs.
Other measures worth knowing about
- Selling land or assets? Capital Gains Tax is coming down from 33% to 31%.
- Gifting or inheriting? The tax-free thresholds for gifts and inheritances are going up, with the parent-to-child threshold rising to €420,000.
- Farming land zoned for housing? If your land has been zoned residential but you're actively farming it, you'll get another chance in 2027 to apply to have it rezoned and avoid the Residential Zoned Land Tax.
- Heating and fuel. The carbon tax on home heating oil and gas is being cut and frozen, and the reduced excise on petrol and diesel has been extended to the end of February 2027.
Planning for the future of your farm
Succession is about family as much as tax, and getting the structure right can save a great deal of money and worry down the line. Whether you're thinking about a Succession Farm Partnership, investing in safety equipment, or reviewing your VAT position, the team at Gilheany & co would be glad to help you plan. Just get in touch.
