The recently formed Commission on Generational Renewal in Farming is due to hold its first meeting in Dublin today (Thursday, November 7).
The commission, chaired by Aidan O’Driscoll of Ornua, is tasked with examining the challenges and complexities around succession.
The seven-member group is due to present its findings and recommendations to the government by the end of next June.
Generational renewal
Aisling Meehan, an agricultural solicitor in Co. Clare, is among the members of the new commission.
She spoke to around 300 farmers who attended an Irish Farmers’ Association (IFA) meeting in Tralee, Co. Kerry last night focused on generational renewal.
Meehan said that over the coming months the commission will be “looking at ways to get land over quicker to the younger generation” and encourage people into farming.
She said that farms should be able to be transferred down tax free from one generation to the next, where there are active farmers involved.
She said the group will explore the possibility of a farmer retirement scheme and would look at models being used in other European countries.
The solicitor noted that farm incomes have a big part to play in land not being transferred over to the next generation.
“They’re just not viable, the money isn’t in the farm to be able to allow people to retire, so that’s something that will definitely have to the looked at,” she said.
Meehan said that she would also be raising the impact of not having pre-nuptial agreements in Irish law on succession with the commission.
A farmer at the meeting said that there are different reasons why farms are not being transferred, including people marrying later in life and children staying longer in education.
He said that consideration should be given to allowing young farmers have an advantage when it comes to leasing land as it is very difficult for them to compete in the open market.
He voiced concern about the make up of the new commission which he said will have to “consult widely” and take input from the farming community.
In response, Meehan said that three members of the commission, including herself, are active farmers.
“I understand that the format is that there is going to be engagement with stakeholders and that there is going to be a public consultation,” she said.
Alice Doyle, IFA deputy president, who also attended the meeting, said that the large crowd was “a very good indication” as to how serious an issue generational renewal is among farmers.
She said that the Commission on Generation Renewal, established by Minister for Agriculture, Food and the Marine Charlie McConalogue, is “very important” and has “a big remit”.
“It’s going to have to look at how we’re going to get young people into farming and how we are going to get the older people out. It was clear from the questions from the floor tonight that both are problems,” she said.
The IFA deputy president told Agriland that transferring the family farm “doesn’t happen overnight” and must be seen as a process.
She acknowledged that this is not an easy conversation for a farm family and that some members may be hesitant to discuss the future.
“You want to make sure you transfer whatever you have in a timely fashion and a tax efficient way.
“In order to do that you must have this discussion and I cannot emphasise that enough that you start that discussion now.
“There’s no point going in and paying a fortune to a solicitor and an accountant to give you tax and legal advice when you don’t really know what you’re going to do,” she said.
Doyle advised farmers to firstly explore what options might work for their farm and when they have decided then seek “very good” legal and tax advice.
Kathleen Herlihy, Kerry IFA second delegate, who chaired the all-female panel at the meeting, stressed that time is of the essence when it comes to tackling the issue of succession in the farming sector.
She pointed out that just 7% of farmers are under 35, while a third are over the age of 65.