Modelling of a potential succession scheme by the Commission on Generational Renewal has suggested that any such scheme funded under the next CAP would have three elements:

  • 1. Installation aid: a lump sum payment at a rate of €720/ha, paid on a maximum of 50ha of utilised agricultural area (UAA) to new entrants aged under 35.
  • 2. Young farmer top-ups: an annual payment of €170/ha for a maximum of 50ha, in line with the Complimentary Income Support for Young Farmers, paid to new entrants under the age of 35.
  • 3. A generational renewal payment: a lump sum payment at a rate of €720/ha, paid on a maximum of 50ha of UAA to older farmer transferors aged 65 or over, with the transferor eligible for the payment once 80% of farm assets have been transferred to the new entrant young farmer.

    • To estimate the cost of this measure, the commission assumed that the farm size profile of scheme participants would follow the existing distribution of farms held by those aged under 35 in terms of their farm land use size as observed from the latest administrative data available of Basic Payment Scheme recipients in 2022.

    The number of farms which would take up the succession scheme varied under three scenarios anywhere from a baseline of 8,800 farms up to 15,100 farms.

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    It found the total costs of such a scheme, depending on demand, ranged from €553m up to €952m over the next CAP programme.

    The average payment per participant would amount to just under €63,000 over five years.

    The report pointed out that alternative scheme designs are feasible, which would yield different cost estimates.