February 13th 1999

Pressure for moves on partnerships

Pressure is mounting on the Dept of Agriculture to get rid of obstacles to farm partnerships. The IFA, ICMSA and Macra na Feirme want the Dept to get rid of the quota clawback in the case of genuine farm partnerships.

In addition the Dept is being asked to look at REPS, premia, and disease regulations in the context of partnerships.

There is a growing awareness that partnerships - or some form of joint farming - offer a lifeline to many small and medium sized farmers.

The classic case is where a young farmer with a small quota could enter a partnership with an older farmer with a larger quota. A partnership would eliminate capital expenditure on the parlour, dairy, buildings and machinery for the young farmer. The combined quota could be produced more profitably on one farm.

Tom Butler of Farm Business Advisors has calculated that two farmers in this situation would be £23,724 better off if they pooled their quotas and produced on one farm. That's an extra £456 a week!