A survey published today (Thursday, April 21) by Ifac has shown that over two thirds of farm families have yet to start a succession plan.

For the fourth consistent year, financial planning, in particular succession planning, is a topic that still requires more focus, according to Irish Farm Report 2022.

Although the number of succession plans has doubled since the 2019 study, only a third of farmers have one in place.

The increase in popularity of registered farm partnerships is credited as a key driver of succession plan levels.

The Ifac survey of almost 900 farmers found that 20% said the farming lifestyle is not appealing enough for the next generation, up from 16% in 2021.

30% of dairy farmers felt the sector would not attract the next generation.

The survey also found that 20%of farmers do not have life cover, one third are concerned about saving for retirement, and 25% worry about saving for education.

Ifac report

The Ifac report reveals that 47% do not have a will in place, up 7% on the 2021 research.

“Just because you don’t have the successor doesn’t mean you shouldn’t have a will done up,” Robert Johnson, senior tax consultant with Ifac, told Agriland.

However, he did not that farmers without a chosen successor are less driven to put arrangements in place.

“There’s lots of things that can go into the will. But it’s the psyche that needs to be changed. It’s not just farmers, it’s across the board. It’s a hard thing to do,” Johnson said.

The tax consultant said that many farmers are dying intestate.

“It’s far more common in the west and the north than it is in the south and east but it is common across the board,” he said.

Johnson also advised farmers of the critical importance of having an enduring power of attorney drawn up.

The 2022 report found that only 17% have such a measure in place, while over a fifth did not know what it is.

“If you get dementia, somebody that you have nominated can make legal and financial decisions on your behalf,” Johnson explained.