Following on from an initial two-year pilot period, a second two-year phase of a Land Mobility programme has been launched in NI.

Co-ordinated by the Young Farmers Clubs of Ulster (YFCU) and the UFU, and managed by ex-MLA John McCallister, the aim is to encourage more young people into farming by facilitating arrangements with existing farmers who might want to take a step back.

In the first two years of the scheme, a total of 28 arrangements were completed, covering approximately 4,500 acres. The average age of farmers was 60, while the average age of new partners was 37.

There were also some family and non-family partnerships

The most popular arrangement was contract dairy heifer rearing, which accounted for 25% of the agreements in place, followed by long-term leases, and share farming arrangements.

“There were also some family and non-family partnerships. It is a mix of everything,” confirmed John McCallister.

To run the programme costs approximately £120,000 over each two-year period. The costs for the initial phase were covered by DAERA, and this time around the Department has agreed to meet 50% of costs.

In addition, £30,000 has been secured from the Prince’s Countryside Fund, and £10,000 each from the red meat sector (the LMC and NI Meat Exporters’ Association) and the dairy sector (Lakeland Dairies, Aurivo, Dale Farm and Glanbia).

Awareness

Those links to people within the industry potentially provide an opportunity to increase awareness of the scheme, said McAllister.

However, he also believes that government can do more to incentivise arrangements, pointing to the Republic of Ireland where tax relief is available on long-term leases.

For a lease of over five, and up to seven years, annual rental income of up to €18,000 is exempt from tax, moving in stages to a maximum of €40,000 where the lease is over 15 years.

This is conclusive proof that the Inland Revenue must act to put in place new tax arrangements

According to McCallister, these tax changes mean the amount of land in long-term leases in Ireland has moved from 2% to nearly 7%, and in the last three years 450,000ac has been newly let on such terms.

He also points to analysis carried out by Jeremy Moody of the Central Association of Agricultural Valuers which indicates that the replication of similar trends in the UK, would see farm productivity increase by some £100m.

“This is conclusive proof that the Inland Revenue must act to put in place new tax arrangements, similar to those already enacted in the Republic of Ireland,” he said.

John McCallister can be contacted on 07833 668602 or e mail: landmobility@gmail.com.

Read more

'I want to take a step back but I don't have a successor'

Land mobility deals struck for 47,000ac