Farm Business Council Report March 2025
Residential Zoned Land Tax (RZLT)
Farmers Need to Act Before 31st March on RZLT
IFA Farm Business chairman, Bill O’Keeffe has called on all farmers with land that may fall under the scope of Residential Zoned Land Tax (RZLT), to make themselves fully aware of the 2025 updated zoning maps in their county. These maps were updated in January this year. Lands that are zoned residential and serviced are liable for the tax at 3% of market value in 2025.
Following intensive lobbying on RZLT by IFA in 2024, The Minister for Finance, Jack Chambers announced an exemption for landowners in Budget 2025. In order to avail of this one year exemption, land owners must make an application to their local authority, to have their lands re-zoned based on the current economic activity on the land.
Landowners with affected land must apply before the 31st March to their local County Council to de-zone their land, if they wish to avail of this exemption. Details of how to make a submission for de-zoning are available on each County Council web page.
IFA believes that hundreds of farmers around the country have land on the outskirts of towns and villages that have been zoned residential, often without the knowledge of the landowner. It is important that lands owners check their county zoned land maps.
Bill O’Keeffe said “IFA and farmers understand the need for building new homes, but RZLT is not the instrument that will solve the current deficit in housing supply. There are many other barriers to the supply of new housing that the government needs to address. IFA will continue this campaign to have all farmland excluded from the scope of RZLT.
It is important that farmers realize they must act before the 31st of March deadline and apply for their lands to be rezoned regardless of previous applications”.
Regardless of the outcome of the application to rezone, it is the act of applying that will facilitate an exemption from the scope of RZLT for landowners in 2025.
Detailed Information on RZLT and making a submission is available on RZLT.ie
Agricultural Relief
IFA are meeting with the Department of Finance on the importance of protecting Agricultural Relief for the farming sector in early April. There are currently no changes to qualifying criteria for agricultural relief. Budget 2025 proposed the addition of a 6-year active farmer test on the disponer of lands immediately before transfer. This proposed new test could have had many unintended consequences, with some farmers not being eligible for Agricultural Relief on inheritance of agricultural lands from disponers who are genuine farmers, but, failed to meet this proposed new 6 year active farmer test. IFA’s position is that Agricultural Relief must be retained, as it is a vital tax relief, reducing the taxable value of farmland by 90% from Capital Acquisition Tax (CAT). This Relief allows for the transfer of farms from one generation to the next, without sizeable tax liabilities.
Following engagement by IFA, Taoiseach Simon Harris made the announcement that the changes to Agricultural Relief announced in the Budget would be postponed allowing for further time to analyse the consequences of any changes before any changes implemented.
Vat58 Rebate
IFA continue to receive weekly queries from farmers that are having difficulties with VAT58 claims to the Revenue Commissioners. While most queries are being resolved successfully, IFA have requested Revenue to engage with IFA and meet on farm to go through in detail the issues farmers are encountering when they’re applying for VAT rebates on eligible items.
Generational Renewal
IFA made a submission to The Department of Agriculture on generational renewal in January. One of the key aspects of the IFA submission is the need for a properly funded farm succession scheme that would allow farmers to hand over managerial responsibility and assets to the younger generation and provide a level of financial security to the older generation. There is a huge fear among older farmers about retirement and care into their elder years and the cost of this care is a huge burden on many farm families. IFA have long campaigned for a more equitable Fair Deal scheme, and there is reform needed.
Farm Finance
Engagement with the mainstream banks, AIB, BOI, PTSB; SBCI & Credit Unions, indicates an increase in loan applications from the farming sector in 2025. Banking sources believe that high prices in dairy and beef are underpinning investments in building, slurry storage and machinery loan applications. IFA will continue to keep close engagement with our mainstream banks to ensure farmers receive competitive interest rates and ongoing ECB interest rate reductions materialize into lower lending costs for farmers.
