Limited income, difficulty in accessing finance and the rollercoaster economics of some farm sectors are among the major challenges highlighted by farm organisations that young farmers face.

The average industry salary in Ireland was €44,200 in 2024, the IFA has highlighted, but the drystock sectors have failed to return anywhere near this return over many years.

While 2025 will see beef farmers in the unfamiliar territory of paying tax bills, it is an anomaly.

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The farm organisations have, in concert, called on the Government to introduce a farm succession scheme which would support both older and young farmers, and the upcoming Budget 2026 will reveal whether that call has been heeded.

However, they have also called for practical supports that would address the financial tests that face young and old farmers.

These tests include the cost of doing business, and meeting constantly changing agricultural policy.

“It is recognised that international markets have a huge influence on much of our output prices,” the IFA’s submission to the Commission on Generational renewal in farming highlighted.

“However, we live in a high-cost economy, our Government and the EU must strive to address the cost of doing business for farmers.

“High input costs coupled with the high cost of regulation can often leave Irish farmers uncompetitive and this needs to be addressed.

It has sought a change to the Growth and Sustainability Loan Scheme (GSLS), which it says is a useful source of finance for many farmers but should be dedicated to the younger generation of farmers.

“Competitive finance over a long term 20-year-plus, to reduce repayment burden in early start up years of establishment, with no security is required,” it said.

“Increasing the availability of accessible finance to the next generation will encourage more young people to explore agriculture as a viable option.

Macra

Macra has called for Ireland to join the rest of Europe in providing installation aid for new farm businesses.

Other EU member states offer lump sums of up to €40,000 for young farmers starting out under their CAP plans.

It has called for simultaneous support for older farmers stepping back or exiting the sector, and young farmers entering the business – providing financial security for retiring farmers and giving young farmers access to land, start-up support, and autonomy over the farm business.

“Solutions must go beyond the Common Agricultural Policy (CAP),” it said in its submission to Government, “and extend to areas such as farm family planning and financial security supported by the national exchequer.

ICMSA

Dairy farmers are riding the crest of a wave on farm incomes currently, but the extreme volatility of international dairy markets and inputs has the ICMSA pushing for tools that would allow young new entrants to cope with the peaks and troughs.

“Volatility has led to greater income uncertainty, which undermines the family farm structure and has a negative impact on generational renewal,” it warned the commission. “Ireland’s taxation system is having a negative impact on farmer ability to grow and develop businesses due to periods of significant farm income volatility.”

“Dairy farmers experienced extremely low milk prices in recent years, while a massive surge in input and output prices in 2022 was followed by a significant drop in 2023 and 2024 and farmers continue to struggle to meet the costs of production.”

The dairy farmer association has called for a 1% interest rate loan for young farmers, a ring-fenced loan scheme, and an installation aid scheme for young farmers.

On TAMS, it wants both the investment items and reference costs under TAMS reviewed, and the requirement to have set up within five years to apply for the TAMS Young Farmers’ Capital Investment Scheme removed. It’s also lobbying for the 60% young farmer grant rate to be pushed up to 75%, and the maximum investment ceiling to be almost tripled to €250,000.

Interestingly, it proposed a farm improvement scheme to help with the costs of modernising a farm and adapting for environmental protection should be considered for young farmers.

Growth and Sustainability Loan Scheme

  • Offers loans of €25,000 up to €3m.
  • Loan term of seven to 10 years.
  • Loans are unsecured up to €500,000; loans above €500,000 may be secured.
  • Discounted interest rates, extra discounts for climate action and environmentally sustainable purposes.
  • Used for long-term investment for business growth and resilience or long-term investment in climate or environment measures.
  • Loans are available up to 30 June 2026 or until the scheme is fully subscribed.
  • Offered through AIB, Bank of Ireland, Close Brothers Commercial Finance, Finance Ireland, PTSB, An Post Money and multiple credit unions.