Would setting up a farming company suit your business?

In essence, farmers who are in averaging might be able to switch into a company in 2025 without a clawback penalty for 2024, writes rural accountant and tax advisor Kieran Coughlan.

Now is actually a really good time to consider incorporating a farming company. Why so, you might ask. Well, there are lots of reasons; first off, at this time of year, farmers generally have a little more time to consider the implications before the busyness of the year gets underway.

One of the more relevant reasons, though, particularly this year above other years, is that farmers are generally coming off the back of a moderate year and heading into a year where profits are fingers crossed likely to be stronger. Teagasc has predicted that all main commercial farming types will experience a lift in profits for 2025 over 2024, with cattle farming likely to experience a lift in incomes of 9%, dairy 27% and tillage 40%.