A tax-free farm succession and knowledge transfer scheme has been proposed by the Irish Natura and Hill Farmers Association (INHFA) to be included in Common Agricultural Policy (CAP) 2028.

As discussions commence on the future of the CAP beyond 2027, the INHFA is calling for ambitious measures to support young farmers, encourage generational renewal and secure the future of family farming across Ireland and Europe.

National chair of the INHFA Micheál McDonnell proposed the scheme – which would be designed to facilitate the transfer of farms from retiring farmers to young farmers and new entrants.

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Generational renewal remains one of the greatest challenges facing Irish and European agriculture and young people wishing to enter the sector face significant barriers, including high land values and limited access to holdings.

Under the proposed scheme:

  • Retiring farmers would receive a tax-free payment for transferring or leasing their farm to a qualified young farmer or new entrant.
  • The payment would recognise both the transfer of the farm and the valuable knowledge, expertise and experience accumulated over a lifetime in farming.

    • The scheme would encourage earlier succession planning and facilitate smoother farm transfers.

    Speaking on the proposal, the INHFA chair said: "Farm succession is about more than land and assets. It is about ensuring that the knowledge, skills and experience built up over decades are passed on to the next generation. CAP 2028 must provide meaningful incentives that reward retiring farmers for transferring both their farms and their expertise to young farmers."

    Real opportunity

    The INHFA believes that such a scheme would provide financial security and recognition for retiring farmers, while creating real opportunities for young farmers and new entrants to establish viable farming enterprises.

    The association asks that generational renewal is put at the heart of CAP 2028 and is urging Irish and European policymakers to introduce innovative measures that support farm succession, knowledge transfer, and the long-term sustainability of rural communities.