The Irish Farmers' Association (IFA) has called for supportive Government policies to help the agriculture sector deal with the demands imposed upon it by reform of the Common Agricultural Policy (CAP).
In a pre-Budget submission to the Minister for Finance, the IFA proposed the introduction of a number of tax reliefs for farmers.
The body said national farm incomes this year will show "no significant recovery" on 2002 when, it claims, national farm income fell by more than 12 per cent in real terms.
The IFA says the average family farm income in 2003 will be about €15,000 or €288 a week. Over 20,000 farmers have a farm income of under €200 per week and do not have another income from a job or pension, according to the organisation.
IFA president Mr John Dillon said the organisation wanted the Government to support "capacity building" on farms to meet demands for greater scale and competitiveness following reform of the CAP.
"It is clear that for Irish farmers to remain viable post CAP Reform II, they must scale up production and this can only be achieved at a reasonable cost.
"Fundamental to this is land availability and land price. This is one area the Government must facilitate and encourage for the national good. In industry it is called capacity building and IDA job creation. There is no such provision for farmers who want to expand and develop."
Mr Dillon said the next few years will see "the most radical policy shift for agriculture in the history of the European Union"."Decoupling of farmer income supports from production will accelerate structural change in agriculture. It is essential for the country to sustain a strong core of full-time farmers with the capacity and scale to continue farming in the difficult environment ahead," he said.
Mr Dillon said the Income Tax Codes provide a means to incentivise land leasing on a medium- to long-term basis as an "effective and realistic option to allow farmers improve competitiveness and secure long-term viability".
The removal of the age restriction of 55 years from the existing tax relief on rental income from farm land is one of a number of tax reform proposals put forward by the IFA.It also wants the amount of the relief increased to €10,000 for leases of 5 years or greater.
The IFA has also called for the reinstatement of Capital Gains Tax "roll-over" relief and a reduction in stamp duty on land swaps as an aid to the consolidation of farm holdings.
Mr Dillon asked the Government to honour commitments made on vital farms schemes which he said were given during negotiations on the Sustaining Progress social partnership agreement.
The IFA president and officials will meet with the Minister for Finance, Mr McCreevy, tomorrow morning to discuss the submission.