Stable income missing in generational renewal report - ICMSA
The Irish Creamery Milk Suppliers' Association (ICMSA) has said that the report on generational renewal contains nothing that will ensure a stable and comparable income for those considering a career in farming.
Having completed it appraisal of the report from the Commission on Generational Renewal in Farming, the ICMSA said that while it is positive and open-minded about the report's recommendations, there is "no disguising the vacuum...at the heard of the report".
"We’ve looked at this inside out and we still can’t see anything in there that’s going to give young people considering farming as a career a consistent income comparable to that they can easily achieve in other sectors," ICMSA Farm Business Committee chairperson Pat O'Brien said.
"That’s the central problem and if we’re not going to address that, then we’re not addressing anything," he added.
O'Brien said that the perception that farming is a "way of life" is not going to be enough to entice potential young people into the sector.
"Obviously farming is a great way of life and no doubt about it, but it needs to deliver an income on a consistent basis in line with other sectors of the economy.
"That's the central problem, and where we see the kinds of fluctuations in income that we're experiencing right now, then it becomes harder to convince young people to consider an occupation in farming where they can see their margins and income wiped out over the space of three months because of factors beyond their control," O'Brien added.
He said that over-regulation and administrative complexity compounds those concerns.
"The young people see their parents tied-up in knots trying to deal with the regulations governing farming and then see the kind of incomes to be made working in other sectors without any of these additional challenges and burdens – and they are just voting with their feet and labour," the ICMSA farm business chair said.
He claimed that the absence of a reference to "wild income volatility" is a "near-disqualifying concern" for the report.
O'Brien said that dealing with this issue is critical for young farmers and new entrants, and that the existing option of income averaging excludes new entrants for the first five years.
"There are three recommendations around access to finance in the report, and if all three were implemented, it would certainly be a step in the right direction.
"Young farmers are likely to be carrying historic farm debt, mortgage costs, and future investment costs; it’s a lot for anyone starting out. We also support the report's focus on promoting and normalising female succession on Irish farms," O'Brien added.
He also called for share farming to be promoted as a practical solution for land transfer and succession.
"We see many farmers with no successor choosing the solar farm route. We'd encourage them to look seriously at share farming instead. We must protect good agricultural land from being lost to non-farming uses," O'Brien said.
He called on Minister for Agriculture, Food and the Marine Martin Heydon to layout a three-year plan with implementation timelines, and to outline a solution to deal with excessive and "potentially ruinous" income volatility.
