The average Waterford farm is worth €1.8m, ifac’s Eoghan Drea has revealed. Waterford has the largest average farm size of any county in the country, and the typical 46ha farm (114ac) has been assessed by ifac as having a value of €15,800 an acre, or €1.8m.

The Capital Acquisitions Tax bill for such a farm could reach €400,000 where agricultural relief is not achieved, he explained.

Drea was speaking at a meeting entitled “Planning for a Farming Future”, organised by AIB, in Dungarvan last week.

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He was highlighting the importance of good planning when it comes to farm succession, with such a valuable asset involved. Drea advised farmers to grasp the nettle when it comes to choosing a successor.

“Don’t leave it to the next generation, make the hard decision yourselves as parents”.

AIB’s Chris Nolan said that farmers are paying down debt more quickly than they are taking on new borrowings.

“In 2010, debt in Irish agriculture peaked at about €4.3 billion, that debt has reduced to approximately €2.8bn” he said.

“Dairy farmers have the highest levels of borrowings, at €150,000 on average, typically €1,000 per cow.”

Tillage farmers are next, at €95,000, he said, but almost two-thirds of farmers have no debt at all.

Future plans

AIB conducts research among over 70,000 farmers annually. Current research suggested that 72% of farmers intend to invest over the next three years, with €60,000 being the average investment, most typically in infrastructure.

Paul Nolan of Dawn Meats and John O’Donnell of Tirlán presented differing outlooks on the beef and dairy sectors. Nolan expressed the belief that beef prices could remain high, although challenges from Australian imports and Mercosur were acknowledged.

In contrast, O’Donnell conceded that, following an exceptionally good year for dairy farmers, the short-term market outlook is challenging.