A scheme providing a 10-year income guarantee to older farmers handing their farm over to a younger farmer is needed if a new generation is to have access to land, according to Irish Cattle and Sheep Farmers’ Association (ICSA) president Seán McNamara.

McNamara proposed the creation of a succession and retirement fund to the commission on generational renewal, established last year by then-Minister for Agriculture Charlie McConalogue.

"For too long, we have seen policy inaction on generational renewal and the consequences are now stark,” the ICSA leader said after meeting the commission on Thursday.

“With the average age of farmers at 58 and one-third over 65, there is a major block preventing younger farmers from entering the sector.”

McNamara stated that the absence of a retirement or succession scheme has left older farmers “holding on to land because they have no financial security if they step back”.

Barrier

“This has created a major barrier to land mobility and farm succession.”

Retiring farmers aged 55 or over need a 10-year income guarantee if they enter a structured succession plan, the ICSA put to the commission in a submission.

It said that the scheme should not put an entry restriction on the upper age of the retiring farmer until at least 20% of farmers are aged under 40.

“This would provide financial security for older farmers willing to step back, while giving younger farmers the opportunity to take over,” McNamara said.

The ICSA’s submission also calls for installation aid of €30,000/year for five years, enhanced young farmer payments and access to low interest, State-backed loans.

“In addition, tax reliefs for non-farming investors must be restricted, while land leasing incentives should be strengthened to ensure land remains in the hands of active farmers,” the group’s president said.