Combining youth and experience
Times have changed, and there is an increasing willingness to transfer property, including family farms, at an earlier stage.
But the pace of that decision making remains slow with the result that the age profile of farmers in Ireland is a cause of serious concern to the sector.
Central Statistics Office data shows that the average age of farmers rose from 50 to 54 years between 2000 and 2010.
More than half were aged 55 years or older in 2010 (up from 40% in 2000), while more than a quarter were aged over 65.
At the other end of the scale, the number of farmers under 35 more than halved over the same period. Less than 6% of farmers in Ireland are now under the age of 35.
Macra na Feirme president Kieran O’Dowd focused on the worrying statistics during his inaugural address in Charleville, Co Cork, early last year.
“There are more farmers over the age of 80 than under 35. This is unbelievable. If those statistics were applied to any other profession, trade or sector there would be an outcry and proper provision made to address the serious imbalance,” he said.
Mr O’Dowd said Ireland must also develop and promote more effective means of collaboration between farmers through partnerships, share farming and similar arrangements.
“A further symptom of the problem is that 48% of full-time farmers over the age of 50 do not have an identified farming successor,” he said.
Irish Farmers Association president Eddie Downey also spoke about the issue at the Dublin Horse Show earlier this month.
Tackling the structural challenges at farm level through the taxation system will be critical to achieving agriculture’s significant growth potential which is vital to the rural and wider economy, he said.
Mr Downey said the IFA has proposed an innovative measure to incentivise the lifetime transfer of family farms, while allowing both parties work together for a defined time period.
The ‘Phased Transfer Partnership’ would require an agreed transfer contract where both parent and child would work together in partnership over the period of the phased and progressive transfer of assets.
As an incentive to the farm holder/parents to enter into the contract they would receive tax relief on a portion of their farm income, up to an agreed ceiling.
“This ‘Phased Transfer Partnership’ will address many of the concerns for both parent and child, which are delaying the transfer of the family farm,” he said.
“A viable agriculture sector, combining youth and experience and making best use of the resources available, will be the foundation on which the expansion of the agri-food industry will be achieved.”
Earlier this year, Agriculture, Food and Marine Minister Simon Coveney described the age profile as one of the major challenges facing the sector.
“With an increasing age profile, the new and innovative thinking, needed to develop more efficient, competitive and sustainable methods of production, is less likely to emerge.
“Human nature dictates that older farmers are less likely than the younger generation to embrace new technology or to invest in their farms.
“The prospects of achieving the Food Harvest 2020 targets, and indeed of securing the future development and prosperity of the sector, would therefore greatly improve if we could attract more young qualified people into farming,” he said.
Minister Coveney said a comprehensive package of European Union and Government measures aimed at young farmers is in place to encourage more young people to take up farming as a career.
He said the ‘buzz’ around the agri-food industry has been encouraging in recent years, and has, for example, contributed to an increased take-up of places in agricultural colleges.
“However, we need to make it more attractive for higher numbers of graduates to go into farming, and to apply their skills to food production, than has tended to be the case.
“Similarly, we need to encourage generational renewal within families, and to make it more attractive for parents to hand over the reins to their sons and daughters in a more timely fashion,” he said.
Planning the transfer of the family farm can be a difficult task, however, with significant and sometimes unforeseen financial, operational and emotional aspects to consider.
Teagasc will hold a series of 11 Family Farm clinics around the country during September and October. Solicitors, accountants, advisers and other relevant parties will attend to assist farmers in creating an effective succession plan for their family.
