Compatible working relationships, incentives for new entrants and an agreed understanding on profit sharing from the outset, were the key messages from a land mobility information meeting held this week at CAFRE’s Greenmount campus.

Organised by the Young Farmers Clubs of Ulster (YFCU), the meeting heard from Land Mobility Programme manager, John McCallister, on the issues around farm succession in NI.

Based on survey results, McCallister said that 48% of NI farms have no successor identified to take over the holding. With the average age of NI farmers being 58, there is potentially a serious problem for the industry going forward.

The Land Mobility Scheme aims to address the issue by looking at new arrangements, including a share-farming partnership between new entrants and those looking to reduce their farming activities or exit the sector.

Guest speaker Oliver Hall from The Andersons Centre in England specialises in establishing such arrangements in Britain.

He stressed the importance of discussing in detail all financial arrangements at the very outset and incorporating such details within the contract.

This includes any equity invested in stock, land, machinery, input costs, bank loans and the division of farm profit. This should also include procedures to cover costs in a loss-making enterprise.

There should also be incentives for the new entrant to grow the business over time. These can include an increased share of profits and acquisition of stock.

Hall added that contract arrangements between a landowner and new entrant should be made clear to the landowner’s wider family, to avoid legal issues around land inheritance. The same should apply to any family farm partnership.

According to Seamus McCormack from Danske Bank, financial support is available to share farming agreements on provision of a sound business plan with proper cashflow planning and projections.

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No successor identified by 48% of older farmers in NI

Positive start for Northern Ireland land mobility service