The Institute of Professional Auctioneers and Valuers (IPAV) has called for the Government to reduce stamp duty levels in the next budget. The organisation, which released its annual farming report at the National Ploughing Championships last week, said the 4% bump in the tax is having a restricting effect on younger farmers aiming to expand and those wishing to buy one-off sites for family homes. “Even before the arrival of Brexit, the farming sector has always been vulnerable to market volatility. In this context, every 1% reduction matters more to this sector, perhaps than any other industry sector. We would hope that the Government will heed this message in the forthcoming budget,” said Pat Davitt, the CEO of IPAV. The body called for stamp duty on land sales to be reduced from its current rate of 6% to 4%, and the restoration of the 2% rate for those wishing to buy one-off sites for family homes.

Challenging weather and Brexit

The report also outlined the various challenges that faced the land market in 2018, including the uncertainty of Brexit and challenging weather conditions, which hiked output costs across the enterprises. While there have been difficulties, the land market remains steady according to IPAV, with average agricultural land prices between €9,000/ac and €9,500/ac. Prices ranged from €4,000/ac to €15,000/ac depending on quality and location.