Overcoming the genuine concerns which crop up when farmers consider succession plans “may not be as difficult as some farmers imagine” with the right advice, according to analysis conducted by researchers.
This was the finding of a paper authored by researchers Dr Michael Hayden of Maynooth University and Dr Brian Leonard of UCD after the conclusion of the Béal Átha na Muice Farm Succession and Well Being European Innovation Partnership (EIP) project.
It emerged from the researchers’ analysis of interviews carried out with 30 beef farmers in Co Mayo, with an average age of 65 and only half of which had a farm succession plan in place before taking part in the EIP.
None of the 15 farmers with plans in place had, however, put this plan down on paper and many had not communicated their plans to family members.
Barrier
The researchers noted that “many farmers experienced a significant amount of stress/concern related to the process of farm succession” and that these issues formed a barrier to getting the ball rolling on developing a plan.
These concerns were grouped into two key areas: identifying a successor and the financial/legal implications of transferring a farm.
On identifying a successor, some participants reported that they were “waiting for one to come forward”, while others were “waiting to see which would be best” and more were of the view that “it will all work itself out eventually and it will be for the next generation to worry about”.
Some farmers concern with succession centres on farm viability after land is divided among children. / Donal O'Leary
Further concerns identified in the research related to farmer fears that successors would make decisions with the land that they do not agree with, like planting forestry, and the researchers flagged these worries as an example of the “emotional attachment to the family farm” evident in many of the interviews.
These concerns were found to leave some farmers stressed in their decision on choosing the “right successor” to inherit the farm.
Financial concerns
The other broad area of concern identified in the study was that relating to the financial and legal implications of farm succession.
Farmers’ concerns relating to the potential impact of farm transfers on taxation came up frequently during the interviews, as did a farmer’s standing in relation to the Fair Deal Scheme.
Other participants considering transferring the farm to the next generation before their death voiced concerns around having an adequate source of retirement income. Two-thirds of those participating in the study farmed part-time alongside an off-farm job.
Not engaged
This resulted in many of these farmers’ children not being actively engaged with the farm, posing a challenge to choosing who should be handed the farm.
Further concerns came to the surface that the division of farms into a number of smaller farms could make the farm unviable for the successors, because smaller farms could generate less income.
Funding available for succession planning
On concluding the project, all farmers were surveyed as to whether taking part had aided their succession planning and all agreed that it had, with over half stating that participation helped them in developing more detailed succession plans.
The researchers pointed towards the Succession Planning Advice Grant scheme which had launched in 2023, after the EIP ended, as a potential example of “best practice” in supporting generational renewal in farming which fit with their recommendation of supporting farmers to seek advice on planning.
The scheme offers those currently farming land up to 50% of the total cost incurred in seeking succession advice from an accredited professional up to a maximum amount of €1,500.
This professional can be an accountant, a tax adviser, a farm adviser or a solicitor. The scheme requires applicants to be 60 years of age or older at time of application for the grant and those applying must have farmed for at least two years in their own right to be eligible for payment.
It opens in tranches, reimbursing successful applicants in the year following application.
The tranche for 2025 is already open and will accept applications until 30 November.
Speaking to the Irish Farmers Journal, author Michael Hayden stated that the findings regard a relatively small group of farmers all in beef located just in Co Mayo, meaning that all findings may not be universally applicable to all enterprise types and regions.
However, many issues may be of relevance to the farming sector at large, Hayden said.
“Succession really is the elephant in the room that unfortunately isn’t spoken about as often as it should, never mind put down into a plan,” the researcher stated.
What emerged from the project was that if farmers met with an accountant, their solicitor or an agricultural adviser to start discussing their concerns, a lot of these concerns could be alleviated with the farmers just having the right information, especially concerns on the legal or financial implications of succession.
“Some of the issues that came up may not be as big of an issue in dairy, for example, where younger generations may be more eager to get into farming for financial reasons, but the issues of keeping everyone in the family happy and the emotional attachment that there is to land are,” he maintained.
Overcoming the genuine concerns which crop up when farmers consider succession plans “may not be as difficult as some farmers imagine” with the right advice, according to analysis conducted by researchers.
This was the finding of a paper authored by researchers Dr Michael Hayden of Maynooth University and Dr Brian Leonard of UCD after the conclusion of the Béal Átha na Muice Farm Succession and Well Being European Innovation Partnership (EIP) project.
It emerged from the researchers’ analysis of interviews carried out with 30 beef farmers in Co Mayo, with an average age of 65 and only half of which had a farm succession plan in place before taking part in the EIP.
None of the 15 farmers with plans in place had, however, put this plan down on paper and many had not communicated their plans to family members.
Barrier
The researchers noted that “many farmers experienced a significant amount of stress/concern related to the process of farm succession” and that these issues formed a barrier to getting the ball rolling on developing a plan.
These concerns were grouped into two key areas: identifying a successor and the financial/legal implications of transferring a farm.
On identifying a successor, some participants reported that they were “waiting for one to come forward”, while others were “waiting to see which would be best” and more were of the view that “it will all work itself out eventually and it will be for the next generation to worry about”.
Some farmers concern with succession centres on farm viability after land is divided among children. / Donal O'Leary
Further concerns identified in the research related to farmer fears that successors would make decisions with the land that they do not agree with, like planting forestry, and the researchers flagged these worries as an example of the “emotional attachment to the family farm” evident in many of the interviews.
These concerns were found to leave some farmers stressed in their decision on choosing the “right successor” to inherit the farm.
Financial concerns
The other broad area of concern identified in the study was that relating to the financial and legal implications of farm succession.
Farmers’ concerns relating to the potential impact of farm transfers on taxation came up frequently during the interviews, as did a farmer’s standing in relation to the Fair Deal Scheme.
Other participants considering transferring the farm to the next generation before their death voiced concerns around having an adequate source of retirement income. Two-thirds of those participating in the study farmed part-time alongside an off-farm job.
Not engaged
This resulted in many of these farmers’ children not being actively engaged with the farm, posing a challenge to choosing who should be handed the farm.
Further concerns came to the surface that the division of farms into a number of smaller farms could make the farm unviable for the successors, because smaller farms could generate less income.
Funding available for succession planning
On concluding the project, all farmers were surveyed as to whether taking part had aided their succession planning and all agreed that it had, with over half stating that participation helped them in developing more detailed succession plans.
The researchers pointed towards the Succession Planning Advice Grant scheme which had launched in 2023, after the EIP ended, as a potential example of “best practice” in supporting generational renewal in farming which fit with their recommendation of supporting farmers to seek advice on planning.
The scheme offers those currently farming land up to 50% of the total cost incurred in seeking succession advice from an accredited professional up to a maximum amount of €1,500.
This professional can be an accountant, a tax adviser, a farm adviser or a solicitor. The scheme requires applicants to be 60 years of age or older at time of application for the grant and those applying must have farmed for at least two years in their own right to be eligible for payment.
It opens in tranches, reimbursing successful applicants in the year following application.
The tranche for 2025 is already open and will accept applications until 30 November.
Speaking to the Irish Farmers Journal, author Michael Hayden stated that the findings regard a relatively small group of farmers all in beef located just in Co Mayo, meaning that all findings may not be universally applicable to all enterprise types and regions.
However, many issues may be of relevance to the farming sector at large, Hayden said.
“Succession really is the elephant in the room that unfortunately isn’t spoken about as often as it should, never mind put down into a plan,” the researcher stated.
What emerged from the project was that if farmers met with an accountant, their solicitor or an agricultural adviser to start discussing their concerns, a lot of these concerns could be alleviated with the farmers just having the right information, especially concerns on the legal or financial implications of succession.
“Some of the issues that came up may not be as big of an issue in dairy, for example, where younger generations may be more eager to get into farming for financial reasons, but the issues of keeping everyone in the family happy and the emotional attachment that there is to land are,” he maintained.
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