The Irish Natura and Hill Farmers' Association (INHFA) has called for a "radical overhaul" of planning laws, claiming that the current set up "discriminates against rural areas".
Pheilim Molloy, the association's president, said that certain elements of the National Planning Framework (NPF) is "actively discriminating against young people from farming backgrounds building new houses on the farm they grew up on".
"The policy is seeing an exodus of young people from rural Ireland that is undermining the long-term sustainability of some areas, while in larger urban areas such as Dublin, we see increased congestion and pressure on services that is clearly unsustainable," Molloy added.
The INHFA president said that the NFP has resulted in moving power away from local authorities while "allowing other interests and ideologies" to influence decisions in other counties and regions.
Molloy accepted that there is a need for a planning framework, but that elected county councillors need to have more control over this.
"In drafting county development plans, we must ensure that outside influence in minimal and trust those that are elected to do right by the people that elect them," he said.
Molloy also reiterated concerns expressed by the GAA in relation to rural decline and the negative impact that this is having for rural clubs in being able to field teams.
"Unfortunately, this issue is featuring more and more and a clear example of a concerning demographic change across rural Ireland," the INHFA president said.
He said the change is seeing the overall population grow older because young people continue to leave.
"There is no doubt that the cost of housing is a factor in this exodus and that is why we must look at ways of reducing this cost.
"Houses built in rural areas are normally cheaper than an equivalent house built in a town or city because the site is usually cheaper and this is very much the case if the site comes free, as often it will if a son or daughter is building a house on the family farm," he said.
Molloy said that the country is "reaching a critical point" with regard to the future of many rural areas, claiming: "If we don't make changes then pretty soon it could be too late".
"Planning the new houses and infrastructural projects has become a major issue and can no longer be ignored," Molloy said.
"Luckily this is one issue that doesn't cost money and if the state gets it right it could even generate money but we do need an urgent revamp of our planning laws," he added.