Around 65,000 farmers applied for a machinery and plant capital allowance, according to the Revenue Commissioners.

That is a 20% rise in the number of farmers using the capital tax allowance, based on an annual 12.5% wear and tear allowance.

The allowance is available on a straight-line basis for eight years but only on new machinery purchased for farm use.

Farmers used the allowance to collectively saved a handsome €370m in tax.

The average amount farmers received in the machinery and plant allowance in 2016 was €5,325 each.