Land Mobility and Succession in Ireland – facts & proposals

Edmond ConnollyCEO, Macra na Feirme – the young farmers of

Ireland27th February 2013

Outline of Presentation

•The structure of farming in Ireland

•The age profile of Irish farmers

•Study findings

•Recommendations

•Action

•Conclusions

Structure of Irish farming

•139,860 farms of which 99.8% were family farms, 54% farming as sole occupation.

•Average labour input per farm is 1.2 labour units.

•Average farm size 34 hectares.•Beef and diary predominantly, some

sheep, pigs & poultry.•10% of land in crop production.

LandQualityinIreland

Age profile of Irish farmers

•88% of farmers male and 12% female.

•6.2% under 35 and 26% over 65

•Average age of farmers increasing by 6

months every year!

•Primary means of entry is by

gift/inheritance.

Land Mobility and Succession Study – Jan 2013

• Many young people keen to enter or expand farming.

• Macra commissioned the study with industry support.

• 421 full time farmers, all over 50 years, surveyed.

• 100 farmers participated in focus groups/ meetings.

• 48% of households (operator +/or spouse) had other

income source

Land Mobility and Succession in Ireland

Succession

• 48% no farming successor identified because

▫ No children – 29%

▫ Not yet decided – 24%

▫ Children not interested – 20%• 40% would like to retire in future (+45% possibly)

• Not influenced by enterprise or area farmed

Land Mobility and Succession in Ireland

Farmers without Farming Successors• 5% received formal advice/information (+12% informal)

▫ 52% accountants and 24% solicitors• 59% no concerns about succession/inheritance • Consideration of future options

▫ Reduce intensity, change enterprise & seek help (94% +)▫ Renting (78%) & long term leasing (74%)▫ 28% consider selling & 27% forestry

• 20% aware of leasing tax exemption (+28% uncertain of details)

• Mistrust and scepticism about long term leasing

Recommendations

• Information ▫ Information guide on options (focus on those

without farming successors)▫ Generate discussion and debate▫ Regular media features (case studies)▫ Programme for professionals▫ Consider support within RDP▫ Awareness of current incentives

• Maintain existing supports • Promote long term leasing & tax exemption

Recommendations

• Consider new models of collaboration▫ Partnerships▫ Share farming▫ Long leases▫ Other contract arrangements

• Promote concept of retirement & retirement planning

• Brokerage service• Policies to encourage mobility• Working group to pursue issues

Actions

• Macra has secured funding to recruit a ‘Land

Mobility Programme Manager’ – April 2013.

• National Farm Advisory service (Teagasc) have

new action plan on collaborative farming

• All stakeholders willing to promote new

mechanisms for young farmers to enter and

expand farming.

Conclusions

•The family farm model in Ireland is the predominant model of land ownership.

•There is a defined need to promote different forms of land use as many owners do not have identified successors.

•Policy support through the Rural Development Programme could accelerate the adoption of other collaborative means of farming in Ireland.

Supporting Ireland’s young farmers