Concerns have been raised this week around the lack of certainty for the future of funding for the LEADER programme.
LEADER is a community-led approach to local development, funded through Ireland's Common Agricultural Policy (CAP) Strategic Plan 2023–2027.
It is currently co-financed by the European Commission and Irish government.
The current programme has total funding of €180 million allocated across local action groups.
While LEADER will remain mandatory, financing for this measure is currently not included in the proposed ringfenced CAP allocation post-2027 and must be found within the broader new National and Regional Partnership Plan, as it stands.
Macra president Josephine O'Neill said the exclusion of LEADER from ringfenced funding is "another significant blow for young people in rural Ireland".
O'Neill spoke at a meeting of the Oireachtas Joint Committee on Agriculture and Food this week.
She said it is not only young farmers who turn to LEADER for support for rural diversification.
She said the programme is important "to ensure that our rural communities can remain attractive, vibrant and socially sustainable environments which will attract young people back to rural Ireland, but will also support the right to stay".
"As an organisation we fight for generational renewal, and it is not just about supporting young farmers and [ensuring] that farming is a vibrant and attractive sector," O'Neill said.
"We also need to ensure that our rural communities are attractive for young people to come back to as well.
"We will encourage that LEADER funding continues to be supported as part of the CAP."
Macra has highlighted significant concerns with the next proposed CAP.
Under CAP post-2027, Ireland is set to receive a proposed €8.16 billion, which would represent an approximate 20-24% reduction compared to the current budget of €10.7 billion.
"This reduction comes at a time when a greater budget was needed now more than ever," Macra said.
"Our sector is facing a generational renewal crisis.
"The viability of farm businesses is continuously being eroded by changing policies."
FORUM Connemara Local Development Company said in a submission to the committee that without a guaranteed minimum budget for LEADER, there is the risk of "weakening one of the EU’s most effective and long-established rural development tools".
Along with other local development companies, FORUM Connemara is advocating for a minimum budget for the LEADER programme for 2028–2034, of €425 million.
"We hope the Irish government will also increase its co-financing rate to ensure this minimum rate," it said.
"A properly resourced LEADER is essential not only for community development but for the sustainability and attractiveness of rural areas - including the farming sector itself."