The next Common Agricultural Policy (CAP) must include "ambitious measures" to support young farmers, the Irish Natura and Hill Farmers' Association (INHFA) said.

The call comes as discussions continue around on the next EU long-term budget, known as the Multi-Annual Financial Framework (MFF), which includes the next CAP.

The European Commission's proposals for the next CAP stipulate that member states ringfence at least 6% of their agricultural funding specifically for generational renewal and young farmers.

However, there has been calls from the European Parliament to increase that ringfenced amount by up to 10%.

INHFA

Michael McDonnell, national chair of the INHFA, proposed that the next CAP include a dedicated tax-free farm succession and knowledge transfer scheme.

He said this would encourage earlier succession planning and facilitate smoother farm transfers.

Under the proposed scheme, retiring farmers would receive a tax-free payment for transferring/leasing their farm to a qualified young farmer or new entrant.

The payment would recognise both the transfer of the farm and the valuable knowledge, expertise, and experience accumulated over a lifetime in farming.

Generational renewal

McDonnell said that generational renewal is one of the greatest challenges facing Irish and European agriculture.

"CAP 2028 must provide meaningful incentives that reward retiring farmers for transferring both their farms and their expertise to young farmers," he said.

The INHFA believes that such a scheme would "provide financial security and recognition for retiring farmers while creating real opportunities for young farmers and new entrants to establish viable farming enterprises".

"The INHFA is urging Irish and European policymakers to place generational renewal at the heart of CAP 2028 and to introduce innovative measures that support farm succession, knowledge transfer, and the long-term sustainability of rural communities," McDonnell said.