Succession isn’t just a financial decision, but a deeply personal one involving family, legacy, and the future of the farm business.
According to the Central Statistics Office (CSO), just 4.3% of farm holders are aged 35 or under, highlighting the urgent need for succession planning across the sector. The average age of farm holders lies at just over 59 years, with a third aged 65 or older, amounting to approximately 50,000 farmers (Central Statistics Office, 2023).
Yet, less than half (47%) of farm holders have a succession plan in place. Among farmers aged 60 and over without a successor, 38% are in dairy, 32% in cattle-rearing, 42% in other cattle, 32% in sheep and an alarming 64% in tillage farming (Central Statistics Office, 2023). These figures point to a need to be proactive when it comes to succession, not just to protect the farm, but to give the next generation the best possible start.
Approaching the conversation
Succession is rarely straightforward. It involves not only ownership, but also management, decision-making and day-to-day responsibilities. Family dynamics, financial implications and emotional ties can make the process challenging.
The key is to start early. At AIB, our agri-advisers encourage families to begin with open and honest conversations, ensuring everyone’s expectations are heard.
A good succession plan details the transfer of ownership and management, asset distribution, roles and responsibilities and a timeline for implementation.
A successor doesn’t always have to be an immediate family member. Non-Family Partnerships, leasing and share farming arrangements are becoming more common, and these avenues should be explored.
Professional guidance is essential. In addition to solicitors, accountants and Teagasc advisers, AIB can help plan for pensions, savings and investment strategies that ensure the retiring farmer has financial security, while supporting the next generation.
If and where conflict arises, mediation can offer a practical and structured route forward.
Think outside the box
Passing on the farm doesn’t have to be an overnight transaction. There are several options when it comes to transferring the farm to the next generation, and not all require a full and immediate handover.
Different structures allow for a gradual transfer, flexibility and financial security:
Registered farm partnerships: are useful when transferring to both a family or non-family member. They provide a gradual transfer and a structured entry for young farmers. Tax incentives are available if transferring to younger farmers.Long-term leasing: offers financial security for the retiring farmer. If leasing for 5+ years, you may be eligible to claim income tax relief, however the land cannot be leased to a close relative, such as but not limited to a spouse, children, parent, sister, brother or grandparent. Shared farming: balances responsibility and output between two parties, making it a good option for gradual involvement.Contract milking or cow leasing: can be a good stepping stone for new entrants as there is a lower financial barrier, helping them build skills and stock. Full sale or transfer: where none of the above are suitable options then a full sale or transfer may be the most practical solution in cases where there is no successor available.Introducing your successor to the decision-making process by bringing them along to meetings during the succession process will help build their knowledge and confidence.
Supports to make it happen
Succession planning is not a journey to be undertaken alone and there are a wide range of supports available to help families make the transition.
A will: the most important legal safeguard for your farm and family. A valid, up-to-date will ensures your wishes are respected, helps avoid disputes, and provides clarity and reassurance for your family.Succession Planning Advice Grant: covers up to 50% of legal, accounting and advisory costs. To qualify, farm holders must be aged 60 and over, and have farmed at least three hectares for two or more years. Tax reliefs: Agricultural relief, Stamp Duty relief, Retirement relief and Income Tax relief on long-term leasing all provide important financial support.Common Agricultural Policy (CAP) Supports: the Young Farmer Scheme and the National Reserve provide vital assistance for the next generation.Advisory Services: Teagasc succession planning services, discussion groups and peer networks provide guidance and shared experiences.AIB Support includes succession planning support, lending solutions, pension, savings, and investment guidance to ensure financial stability for retiring farmers.Securing the future of the farm
Succession can feel daunting, but it doesn’t have to be a burden. With the right plan, advice, and financial support, families can secure the future of their farms while protecting the legacy built by generations before them. The most important step is starting the conversation. When you do, AIB is here to help guide and support you every step of the way.
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.
Central Statistics Office (CSO) (2023) Farm Structure Survey 2023: Demographic Profile of Farm Holders. Available at: https://www.cso.ie/en/releasesandpublications/ep/p-fss/farmstructuresurvey2023/demographicprofileoffarmholders/
Central Statistics Office (CSO) (2023) Farm Structure Survey 2023: Succession Planning and Demographic Profile of Farm Holders. Available at: https://www.cso.ie/en/releasesandpublications/ep/p-fss/farmstructuresurvey2023/demographicprofileoffarmholders/
Succession isn’t just a financial decision, but a deeply personal one involving family, legacy, and the future of the farm business.
According to the Central Statistics Office (CSO), just 4.3% of farm holders are aged 35 or under, highlighting the urgent need for succession planning across the sector. The average age of farm holders lies at just over 59 years, with a third aged 65 or older, amounting to approximately 50,000 farmers (Central Statistics Office, 2023).
Yet, less than half (47%) of farm holders have a succession plan in place. Among farmers aged 60 and over without a successor, 38% are in dairy, 32% in cattle-rearing, 42% in other cattle, 32% in sheep and an alarming 64% in tillage farming (Central Statistics Office, 2023). These figures point to a need to be proactive when it comes to succession, not just to protect the farm, but to give the next generation the best possible start.
Approaching the conversation
Succession is rarely straightforward. It involves not only ownership, but also management, decision-making and day-to-day responsibilities. Family dynamics, financial implications and emotional ties can make the process challenging.
The key is to start early. At AIB, our agri-advisers encourage families to begin with open and honest conversations, ensuring everyone’s expectations are heard.
A good succession plan details the transfer of ownership and management, asset distribution, roles and responsibilities and a timeline for implementation.
A successor doesn’t always have to be an immediate family member. Non-Family Partnerships, leasing and share farming arrangements are becoming more common, and these avenues should be explored.
Professional guidance is essential. In addition to solicitors, accountants and Teagasc advisers, AIB can help plan for pensions, savings and investment strategies that ensure the retiring farmer has financial security, while supporting the next generation.
If and where conflict arises, mediation can offer a practical and structured route forward.
Think outside the box
Passing on the farm doesn’t have to be an overnight transaction. There are several options when it comes to transferring the farm to the next generation, and not all require a full and immediate handover.
Different structures allow for a gradual transfer, flexibility and financial security:
Registered farm partnerships: are useful when transferring to both a family or non-family member. They provide a gradual transfer and a structured entry for young farmers. Tax incentives are available if transferring to younger farmers.Long-term leasing: offers financial security for the retiring farmer. If leasing for 5+ years, you may be eligible to claim income tax relief, however the land cannot be leased to a close relative, such as but not limited to a spouse, children, parent, sister, brother or grandparent. Shared farming: balances responsibility and output between two parties, making it a good option for gradual involvement.Contract milking or cow leasing: can be a good stepping stone for new entrants as there is a lower financial barrier, helping them build skills and stock. Full sale or transfer: where none of the above are suitable options then a full sale or transfer may be the most practical solution in cases where there is no successor available.Introducing your successor to the decision-making process by bringing them along to meetings during the succession process will help build their knowledge and confidence.
Supports to make it happen
Succession planning is not a journey to be undertaken alone and there are a wide range of supports available to help families make the transition.
A will: the most important legal safeguard for your farm and family. A valid, up-to-date will ensures your wishes are respected, helps avoid disputes, and provides clarity and reassurance for your family.Succession Planning Advice Grant: covers up to 50% of legal, accounting and advisory costs. To qualify, farm holders must be aged 60 and over, and have farmed at least three hectares for two or more years. Tax reliefs: Agricultural relief, Stamp Duty relief, Retirement relief and Income Tax relief on long-term leasing all provide important financial support.Common Agricultural Policy (CAP) Supports: the Young Farmer Scheme and the National Reserve provide vital assistance for the next generation.Advisory Services: Teagasc succession planning services, discussion groups and peer networks provide guidance and shared experiences.AIB Support includes succession planning support, lending solutions, pension, savings, and investment guidance to ensure financial stability for retiring farmers.Securing the future of the farm
Succession can feel daunting, but it doesn’t have to be a burden. With the right plan, advice, and financial support, families can secure the future of their farms while protecting the legacy built by generations before them. The most important step is starting the conversation. When you do, AIB is here to help guide and support you every step of the way.
Lending criteria, terms and conditions apply. Credit facilities are subject to repayment capacity and financial status and are not available to persons under 18 years of age. Security may be required.
Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland.
Central Statistics Office (CSO) (2023) Farm Structure Survey 2023: Demographic Profile of Farm Holders. Available at: https://www.cso.ie/en/releasesandpublications/ep/p-fss/farmstructuresurvey2023/demographicprofileoffarmholders/
Central Statistics Office (CSO) (2023) Farm Structure Survey 2023: Succession Planning and Demographic Profile of Farm Holders. Available at: https://www.cso.ie/en/releasesandpublications/ep/p-fss/farmstructuresurvey2023/demographicprofileoffarmholders/
SHARING OPTIONS