Farmers need to be more active in developing a succession plan early and they need to put a plan in place around the future of their farms, according to Professor Michael Hayden.
Prof Hayden, a business lecturer at Maynooth University with expertise in farm generational renewal, said there is also “work to be done” to make the transfer of land easier.
This, he said, is not just about incentivising young farmers to embark on a career in the sector but supporting older farmers to retire as well.
“There is a problem with farm succession where many farmers want to retire but there’s no viable successor coming through. It’s like a double-edged sword,” he said.
“I really think farmers need to be more active in developing a succession plan early on and even speaking to their children. A lot of times there’s a lot of secrecy over who’s getting the farm. I think farmers need to communicate more with potential successors and put a plan in place.”
Culture
Prof Hayden also described a “culture in Ireland for farmers to continue well past retirement”, making it “difficult for new entrants to come in”.
“One of the reasons is around the whole pensions area,” he told the Irish Farmers Journal.
“Many farmers of retirement age do not qualify for the old-age State pension because they may not have sufficient PRSI contributions.
Many farmers are left unable to retire as they do not have sufficient PRSI contributions for the state pension. \ Philip Doyle
“Maybe they didn’t inherit the land themselves until they were in their 30s or 40s and were working for free essentially on the farm for their first maybe 30 years. All of that results in a farmer still working into retirement even for income for [themselves]. That’s a natural regression that younger farmers don’t have the access to the land.”
Prof Hayden described improving generational renewal on farms as a “slow burner” but suggested that initiatives such as farm partnerships are starting to overcome the barriers.
He also said it is “fundamental” that inheritance tax is not increased for farmers to “enable the transfer and sustainability of farming enterprises”.
Prof Hayden said another fact is that agricultural science graduates are finding “more financially rewarding” careers outside of the farm. “Farming sometimes is not that attractive as a lifestyle for young people. So, quite often, a younger farmer might go off and work off-farm and then will end up just not coming back to the farm. That brings a danger with it.”
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Farmers need to be more active in developing a succession plan early and they need to put a plan in place around the future of their farms, according to Professor Michael Hayden.
Prof Hayden, a business lecturer at Maynooth University with expertise in farm generational renewal, said there is also “work to be done” to make the transfer of land easier.
This, he said, is not just about incentivising young farmers to embark on a career in the sector but supporting older farmers to retire as well.
“There is a problem with farm succession where many farmers want to retire but there’s no viable successor coming through. It’s like a double-edged sword,” he said.
“I really think farmers need to be more active in developing a succession plan early on and even speaking to their children. A lot of times there’s a lot of secrecy over who’s getting the farm. I think farmers need to communicate more with potential successors and put a plan in place.”
Culture
Prof Hayden also described a “culture in Ireland for farmers to continue well past retirement”, making it “difficult for new entrants to come in”.
“One of the reasons is around the whole pensions area,” he told the Irish Farmers Journal.
“Many farmers of retirement age do not qualify for the old-age State pension because they may not have sufficient PRSI contributions.
Many farmers are left unable to retire as they do not have sufficient PRSI contributions for the state pension. \ Philip Doyle
“Maybe they didn’t inherit the land themselves until they were in their 30s or 40s and were working for free essentially on the farm for their first maybe 30 years. All of that results in a farmer still working into retirement even for income for [themselves]. That’s a natural regression that younger farmers don’t have the access to the land.”
Prof Hayden described improving generational renewal on farms as a “slow burner” but suggested that initiatives such as farm partnerships are starting to overcome the barriers.
He also said it is “fundamental” that inheritance tax is not increased for farmers to “enable the transfer and sustainability of farming enterprises”.
Prof Hayden said another fact is that agricultural science graduates are finding “more financially rewarding” careers outside of the farm. “Farming sometimes is not that attractive as a lifestyle for young people. So, quite often, a younger farmer might go off and work off-farm and then will end up just not coming back to the farm. That brings a danger with it.”
Read more
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Young farmers will deliver environmental obligations - Macra
MEP reiterates Macra calls for more young farmer supports
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