Interest in registered farm partnerships is expected to increase in 2023 because of the rate increase of the Complementary Income Support for Young Farmers (CIS-YF), commonly known as the young farmer top-up.
Under the new CAP, the young farmer grant rate is set to more than double, from €68/ha to €170/ha on a maximum of 50ha. Young farmers in registered partnerships are eligible for the enhanced payment.
Agri solicitor Aisling Meehan believes that proposals to give female farmers 40 years or over preferential treatment in registered partnerships will also drive interest.
Teagasc data shows that, as of June 2022, there were 3,563 registered partnerships in the country. However, anecdotal evidence suggests that with an increasing number of partnerships, there is a resulting increase in the number of partnerships breaking down.
Speaking to Irish Country Living this week, mediator Clare O’Keeffe said: “Partnerships make sense both financially and for the viability of enterprises.” However, she cautioned that there are a number of factors to consider before entering into such agreements to avoid them failing. From a legal standpoint, Meehan warns that where conflict arises between partners and is not resolved, the resulting breakdown of the agreement can lead to legal consequences.