1. Budget Overview
Budget 2013 sets out the expenditure reductions and taxation changes for the next 12 months, in line with
the Government�s Medium-Term Fiscal Statement and the programme of Financial Support, agreed with the
EU/IMF. In total, an adjustment of 3.5b will be made, of which 1.4b is for current expenditure reductions,
0.5b capital expenditure and 1.4b in taxation increases.
The main changes in public expenditure and taxation affecting farm businesses and families are set out
below.
2. Main Changes to Public Expenditure
2.1 Agriculture Budget
2.1.1 Current expenditure
Suckler Cow Welfare Scheme: The existing scheme will be replaced by a new breeding scheme, which will
pay 20/cow with a ceiling of 20 cows qualifying for payment per farm.
Disadvantaged Areas: Reduction in the maximum area payable from 34 to 30ha. This reduction will not be
applied to farmers in mountain grazing areas.
REPS / AEOS: Funding allocation of 200m for AEOS 1, 2 & 3 and REPS 4 � no change in payment rates,
but some payments will carry forward to 2014.
Discussion Groups: Funding allocation of 5m for beef discussion groups, 3m for sheep and 1m for dairy
(new entrants only).
Sheep Grassland: Funding cut of 22% from 18m to 14m.
2.1.2 Capital Expenditure
Forestry: Maintenance of forestry premium and funding for a planting programme of 7,000ha in 2013.
TAMS: Funding of 10m for dairy modernisation and 3m for sheep fencing scheme. Additional funding for
the grants due for pig and poultry welfare.
Horticulture: Funding allocation of 3.25m for horticulture sector for 2013.
2.2 Other Expenditure & Social Welfare Changes
2.2.1 Social Protection
Farm Assist: income and child disregards being abolished. This will reduce payments by an estimated
10/week
Child benefit: Rate reduced by 10 per child per month.
Household benefits package: Reduced support for telephone allowance scheme and electricity allowance.
IFA Report on Budget 2013 � Summary
Rowena Dwyer Gerry Gunning Geraldine O�Sullivan
Chief Economist Rural Development Farm Family & Forestry