Land Mobility Service: Benefits of a long-term farm lease

Long-term leasing is proving to be effective and popular.

From the landowner’s perspective:

1. Long-term leasing is extremely tax-efficient. The rental income that is exempt from annual income tax for qualifying leases taken out on or after 1 January 2015 is:

2. As with all arrangements, it is important to select the right person. With a correct choice, long-term leasing provides income security and certainty, and it will also result in the land and facilities being properly maintained or enhanced.

3. Long-term leasing agreements tend to be clean and simple.

4. Landowners wishing to step back can opt to lease part of their farm and continue to farm the remainder themselves.

5. Leasing does not suit all landowners as they may not be ready to retire or might want to stay involved.

From the farm operator’s perspective:

1. Long-term leasing delivers access to land for a definite period at a known cost. This provides certainty, allowing an operator develop his or her farm business.

2. Where investment is required, in order to make the best use of leased land – be that on your own or the leased farm – it is important that the lease duration is sufficiently long to justify it. In reality, five years is too short in most cases.

3. The principal reason leases break down is if the rent is not realistic. Before agreeing a price, do your budgets and know your costs of production.

4. When looking to lease land, your record in land and infrastructure care, and how you honoured previous agreements, is very important. Your reputation will follow you.

5. Young farmers, new entrants and small operators can find themselves at a disadvantage when considering a significant lease. Established operators tend to be best positioned to have the finance required to cover stock, investments, inputs and the rent.

Land mobility opportunities

A key element of the Land Mobility Service is matching people to opportunities. This is a brokerage service to find the ideal farmer match for you. Phone 01-419 9555 to speak with one of our specialist team and provide your details and preferred option. Confidentiality is assured. Qualified leads will be passed to you for further consideration.

Farms for lease

Claremorris, Mayo, dry dairy farm comprising a 90-acre grazing block paddocked out with good roadways and good-quality grass plus another 50 acres outfarm. The owner is presently milking 80 cows but wants to step back and pursue other interests. Accommodation is available as would be the cows. Some upgrading of facilities would be required.

Reference L211

West Kerry dairy farm extending to 100 acres, of which 70 is grazing block. Facilities for 80 cows (cubicles, slurry storage, calving, machinery, eight-unit parlour). Landowner presently milking 60 cows. Landowner would like to retire. Preferred option would be to lease the farm as a working dairy farm with cows, machinery, etc, to a suitable individual.

Reference L212

Kilkenny, Dunnamaggan. This is a 65-acre dairy farm carrying 40 cows and replacements, with 60 cubicles, six-unit milking parlour and 6,000-litre bulk tank. Owner was left the farm and works off-farm, but wants to see the farm well operated.

Reference L213

Castlerea, Roscommon. Beef farm to lease comprising 140 acres in three blocks. Owner retiring.

Reference L214

Ballina, Mayo. Ex-dairy farm for lease, comprising 125 acres, of which 80ac is adjacent to the parlour. The farm milked 60 cows up to recently and is now in drystock.

Reference L215

Potential share-milker farms

Working dairy farm, Nenagh, Tipperary. Ninety-nine-acre grazing block with an additional 50 acres, 100 cows, 13-unit milking parlour, 50 cubicles and loose sheds. Landowner working off-farm. Landowner does not want to go full-time farming himself, but want to develop the dairy farm business with a suitable collaborator.

Reference SM101

Dairy farm, Kilkenny. Landowner wants to retire. No farming successors. 125-acre farm, of which 75 acres represents milking block. There are 60 cubicles and a 10-unit parlour, presently milking 65 cows and carrying beef cattle.

Reference SM102

South Wicklow. Large beef and tillage farmer interested in developing a dairy operation on a 170-acre block. He would continue to farm other lands which would be available to support the dairy operation. The landowner is looking for someone to work with and is very open to different types of arrangement.

Reference SM103

Dairy farm, northwest Cork. Landowner wants to retire. No farming successors. This is a 130-acre farm, of which 100 acres represents milking block. There are 60 cubicles plus loose sheds and an eight-unit parlour, presently milking 60 cows. Landowner looking for someone to come in on a share or lease basis.

Reference SM104

Mid-Tipperary. Working dairy farm extending to 240 acres, of which 180 currently represents grazing platform. There is a 13-unit milking parlour, 8,000-litre bulk tank, cubicles and housing for 150 cows plus separate calf shed. Landowner is currently milking 100 cows and carrying some beef cattle. Landowner wants to step back but would like to see the farm develop to its dairy potential now that quotas are gone. Looking for an enthusiastic skilled young person with dairy experience. The ideal collaborator would bring 50 cows, getting the farm up to 150 cows on a shared basis and develop from there.

Reference SM105

Mid-Kilkenny. Large beef and tillage farm with 330 acres in the main block and a 100-acre outfarm. Outfarm perfect for heifers and silage. The landowners want to develop a dairy farm but don’t want to do it alone. They are looking for someone with dairy skills and experience to come in on a shared basis to develop the farm.

Reference SM106

Beef farm extending to 250 acres in south Tipperary. Potential grazing block extends to over 150 acres. Excellent land quality, beef housing in place, investment will be required. Landowner is business-focused, has no farming successors, wants to retire but at the same time develop a dairy farm. Landowner looking for a genuine, financially sound, skilled collaborator. Landowner has an open mind as to arrangement type.

Reference SM107

Partnerships

Dairy farmer near Charleville in Cork milking 60 cows on 90 acres looking to farm a partnership with another landowner/farmer. Wants to expand his business through sharing investment, facilities and workload.

Reference P51

South Galway drystock farmer with 70 acres would like to go into dairying in conjunction with another farmer.

Reference P52

East Cork. Dairy farmer with a 60-acre grazing block and 12-unit parlour interested in linking up with another dairy farmer in order to achieve scale and efficiencies.

Reference P53

Skilled young farmers looking for an opportunity

Skilled and experienced young dairy farmer with New Zealand experience. West Cork. Presently milking own cows on a restricted block, 440kg milk solids on 400kg meals. Would like to move to an enlarged block and either develop a dairy farm or maximise the potential from an existing dairy farm in collaboration with the landowner. Open to all arrangement types.

Reference YTF01

Mixed farmer, Ardrahan, Galway, looking to engage with landowners with a view to developing mutually beneficial long-term arrangements.

Reference YTF02

Young trained farmer with green cert returning from New Zealand would like to enter into a share farming or lease arrangement with a retiring landowner with a view to developing a profitable dairy business for all parties

Reference YTF03

Cork Dairy farm manager looking for a farm to lease or share farm in Cork.

Reference YTF04

Young trained farmer in North Roscommon wishing to expand looking for land to lease.

Reference YTF05

Young trained beef, sheep and tillage farmer Nenagh Tipperary looking for additional land to share-farm or lease long-term. Enhancement and maintenance of the farm assured.

Reference YTF06

Top-class tillage farmer looking for lands on long lease or share-farming. Enhancement and care of the land assured.

Reference TYF07

Young, trained and ambitious farmer from the northwest with five years experience including management of a 500-cow dairy herd. Looking to enter a share-milking arrangement, preferably with a retired farmer or someone stepping back. All areas considered, but northern half of the country is preference.

Reference DN 101