27 April 2025

Handing the farm over to the next generation

With the average age of Irish farmers now 59, succession is one of the biggest challenges facing farming. Teagasc Farm Management Specialist, Klara McGriskin looks at the essential steps for a smooth succession process.

If not properly planned, farm succession can lead to uncertainty, disputes, and even the loss of family farms. Succession isn’t just about paperwork or finances – it’s about ensuring the farm stays viable, family relationships remain strong, and the retiring farmer has a clear path forward. Planning early and seeking professional advice makes all the difference.

Avoiding assumptions in farm succession

Many farmers assume succession will just happen naturally. They believe, often correctly, that their children will take over and the process will run smoothly and easily. However, that is not always the case, and failing to plan can cause delays and disagreements. Here are some of the most common assumptions – and why they may not hold true.

• “One of the kids will take over” – while many farmers hope their children will continue the family tradition, times have changed. Job opportunities, higher education, and different lifestyles mean not every child will want to farm.
• “The eldest son will inherit, like always” – the old tradition of passing the farm to the eldest son, retaining the family name on the land, is no longer automatic. What matters most is choosing someone who genuinely wants to farm and is capable of running the business.
• “We’ll figure it out when the time comes” – leaving things undecided can lead to family disputes. A clear plan prevents confusion and keeps everyone on the same page.
• “There’s loads of time to sort it out” – life is unpredictable. Starting early allows for a smoother transition and prevents rushed decisions.
• “The young fella will farm the same way I did” – the next generation might want to bring in new ideas, like organic farming, agri-tourism, or technology-driven methods. Being open to change helps keep the farm sustainable.
• “The one taking over should get everything” – while keeping the farm intact is important, fairness matters too. There are ways to ensure non-farming children are treated fairly, such as rental income or other assets.
• “Handing over the farm won’t cost much” – taxes and legal costs can be a big shock if not planned for properly. Taking advantage of reliefs like Agricultural Relief and the Young Trained Farmer Scheme can reduce the burden.
• “Only family can take over” – if no family members want to farm, options like leasing, selling, or farm partnerships can keep the land productive while providing financial security.

Succession planning: More than just the farm

Stepping back from farming is therefore not just a financial decision – it’s an emotional one too. Farming is more than a job; it’s a way of life that shapes daily routines, identity, and community connections. Retirement can feel overwhelming, not just due to financial concerns but also the loss of a sense of purpose and belonging. That is why planning for life after farming is just as important as the handover itself.

A good approach is to ease into retirement gradually – maybe by keeping a small part of the land to farm, staying involved in decision-making, or mentoring the next generation. This allows farmers to stay connected while transitioning to a new stage of life.

Five key steps in farm succession planning

1). Start the conversation early

Succession planning should begin years in advance, not at the last minute. Talk openly with family members to understand their interests and expectations. Avoid making assumptions – clear communication prevents disputes.

2). Identify the successor and other beneficiaries

Decide who will take over the farm and how to provide fairly for other family members. The successor should be committed to farming and capable of running the business. If there are multiple children, consider inheritance structures that maintain fairness while keeping the farm intact.

3). Develop a financial and legal plan

Work with advisors to create a plan that covers:

• Ownership transfer (gradual or full handover).
• Tax planning (to minimise costs like inheritance tax and capital gains tax).
• Legal structures (wills, family trusts, or partnerships).
• Retirement income for the outgoing farmer.

4). Plan for a smooth transition

A gradual handover often works best, allowing the successor to build experience while the retiring farmer stays involved.

Options include:

• Farm partnerships – the older and younger generations work together before full transfer.
• Leasing land – provides a steady income while keeping ownership.
• Gradual sale – selling the farm in stages rather than all at once.

5). Consider life after farming

Retirement is a major life change, so it’s important to consider what you want from it. Whether that means continuing to farm on a smaller scale or stepping away completely to explore other interests, having a clear plan will help make the transition smoother.

The above is just a taste of the full article on Farm Succession planning prepared by Teagasc Farm Management Specialist, Klara McGriskin for the March-April Edition of Today’s Farm.

To read the full article, view the full issue of Today’s Farm (PDF) here.