Targeted supports should be directed towards young farmers during the first years of their farm being set up, a new report from the Joint Research Centre (JRC), the European Commission’s science and knowledge service, has suggested. It also recommended that member states should take a tailored approach to succession across the EU.

Based on the analysis of data of Irish, Belgian, and Polish Farm Accountancy Data Network (FADN) data from 2009 to 2023, the report, titled ‘Farm succession and land access dynamics’, showed that a one-size fits all model towards land access and generational renewal was highly unlikely to effectively address the needs of the three countries.

The recommendation that a set of voluntary actions be adopted at member state level opens the door for Ireland to create a suite of measures that could be used to meet the challenges ahead for generational renewal in Irish agriculture.

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Lack of land and barriers to generational renewal were found to be among the key risks and vulnerabilities in EU food supply chains.

Amid growing concerns about generational renewal and the future of EU agriculture, the topics are expected to assume even greater importance in the upcoming discussions on the Common Agricultural Policy (CAP) post 2027.

This prompted the European Commission to release a new generational renewal strategy setting out relevant initiatives to boost policy support and help younger farmers become established.

The new strategy proposes the carrying out of land market assessments for generational renewal and the establishment of a European land observatory to improve land transparency.

It also aims to improve farmers’ access to available land, improve farm succession, inform policy and prevent land speculation and thereby making it easier for new entrants to start farming. The wide-ranging report states that targeted support during the first years of farming following installation may be warranted.

It was also suggested that although a number of gender-targeted policy instruments already exist, more of an effort might be needed to strengthen land access support for women.

The report stated that female farmers may face greater constraints in expanding their land base after first installation and further supports may be need to be considered after this stage of their farming career.

Policy instruments

As they face greater difficulties, the report also proposes that smaller and new (non-inherited farms) may be given priority in this regard. Dedicated policy instruments may also be required for farms in both of these categories, particularly if the goal of the EU’s agricultural policy is to preserve a small-farm agricultural landscape or to incentivise the entry of new farmers.

It also suggested that land and capital policies should be designed in tandem given the close links between access to land and finance.

Different aspects of land access such as land utilisation, ownership and rental from the perspective of the retiring farmer and the new farmer were explored in the study.

Whether a successor was identified or not land access dynamics differ markedly between farms with and without an identified successor.

It found that if a successor was identified, then investment in the farm continued and land access becomes relevant even before the farm transfer occurs, as identifying a successor increases the demand or need for land in preparation for succession.

If no successor was identified then the retiring farmer was less likely to invest in the asset or seek out more land.

This led to differing dynamics after installation as they can vary substantially depending on whether the farm was fully or partially inherited or a newly created entity that is non-inherited such as is the case in non-family collaborative farms.

Compared to inherited farms that can rely on pre-existing land and collateral to secure loans, newly created farms face greater financial constraints and barriers when it comes to expanding their land base or purchase other assets. Because of this, the report stated that if these farms are likely to expand it can happen a decade or two later than on an inherited farm.