Collaborative Farming: Practical Pathways for Bringing the Next Generation into Irish Farming

Ruth Fennell

Succession planning is one of the most important conversations taking place on farms today. With an ageing farming population, rising land values, increasing scale requirements, and growing financial pressures, many farm families are asking the same question: How can we bring the next generation into the business while protecting the viability of the farm and providing security for the current owner?

The traditional model of one farmer stepping aside completely and handing over the farm in a single transaction is generally not in the best interest of the parties involved or the business itself. Many farmers wish to remain involved, gradually reduce their workload, and to create opportunities for a son, daughter, niece, nephew, or unrelated young farmer to build a future in agriculture.

Collaborative farming arrangements offer a range of solutions that can help achieve these goals. The decision tree above highlights several pathways available to farmers depending on their stage of life, succession plans, and desired level of involvement.

The Starting Point: Do You Want to Continue Farming?  The first question is straightforward but fundamental:

Do you want to continue farming actively for the next five to ten years?

For some farmers looking to step back, the answer may be no. In such cases, options such as long-term leasing, direct transfer to a successor or even potentially farm sale may provide the most suitable route.

Long-term leasing is popular due to the tax incentives available in Ireland. These incentives can apply to leases in excess of five years.  It also allows the landowner to retain ownership while stepping away from day-to-day farming responsibilities.   This option also provides opportunities for progressive young farmers to expand.  The relevant tax incentives are outlined in table 1 below.

Table 1: Income tax incentives for long-term land leasing

Where a farm is sold, it is important to obtain good financial advice as there could be considerable capital gains tax implications.  Where there is an identified successor, transferring the farm doesn’t mean that the asset owner has to step away completely from the business and ideally the process of handing over the management of the business should take place gradually over time.  The Registered Farm Partnership has proven to be a hugely popular model when used in these circumstances, allowing the existing farmer to step back gradually while the younger farmer gradually step forward into the managerial role after being mentored and supported by the existing farmer during the transition.

Where a family successor exists, transferring ownership during the farmer’s lifetime can also provide clarity and facilitate future investment decisions.  Often, many farmers face a situation where no family member is currently ready or in a position to take over the farm.  In these cases, collaborative arrangements can bridge the gap between generations.  This facilitates the continued investment in the farm and its infrastructure and ensures that it remains a viable option if or when a family member does come home to farm. Rather than reducing investment levels and allowing the productivity of the farm to decline, farmers can enter partnerships or share farming arrangements with trained young farmers.

These arrangements can:

• Maintain active farming on the holding
• Improve labour efficiency
• Increase profitability through shared expertise
• Create a pathway for eventual succession if circumstances change.

For young entrants without access to land ownership, such arrangements provide a valuable route into farming that would otherwise be difficult to achieve.

In cases where a successor has been identified, the next question becomes: Are they ready to take on significant responsibility?  The answer is often more complex than a simple yes or no.  Many successors may have completed their agricultural education but lack practical management experience. Others may be working off farm while gradually building their involvement in the family business.  This is where collaborative structures can be particularly effective, allowing responsibility to be transferred gradually rather than overnight.

When deciding on the Level of involvement that parties would like, the strength of the various collaborative farming options is the flexibility.  Some farmers wish to remain highly involved in decision-making, while others want to step back significantly from daily operations.  The decision tree identifies two broad approaches:

High-Level Involvement: Farmers who still enjoy farming and wish to remain actively engaged may choose to continue farming while implementing a structured succession plan.

This often involves:

• Sharing financial information with the successor
• Involving them in strategic decisions
• Gradually transferring management responsibilities
• Developing a clear timeline for future ownership transfer.

This approach allows the current farmer to retain leadership while ensuring the successor gains valuable experience.

Lower-Level Involvement: Other farmers may wish to reduce physical workload, administration, or day-to-day management while still maintaining a connection with the farm.

Several collaborative options can facilitate this transition.

Farm Partnerships

Registered Farm Partnerships have become one of the most successful collaborative models in Ireland.  A partnership allows two or more individuals to operate the farm business together while sharing profits, responsibilities, and decision-making.  For family farms, partnerships provide a structured way to introduce the next generation into management.

Benefits can include:

• Gradual transfer of responsibility
• Better labour utilisation
• Access to partnership supports and incentives, including enhanced stock relief, the Collaborative Farming grant and enhanced TAMS III funding
• Improved business continuity
• Enhanced opportunities for young, trained farmers.

A well-designed partnership agreement clearly outlines each person’s role, investment, and share of profits, reducing uncertainty and potential conflict.  They provide security for both the asset owner and the partners due to the legally binding partnership agreement, where assets owned by individuals prior to the partnership are licenced to the partnership rather than ownership being transferred.

Share Farming

Share farming differs from a partnership because both parties remain independent businesses while collaborating on production.

Typically:

• The landowner provides land and infrastructure
• The share farmer provides labour and livestock
• Output is shared according to the party’s own specific agreement

These arrangements work particularly well in both the tillage and dairy sectors.  For farmers who don’t wish to lease out their land completely, share farming provides an attractive middle ground.  The arrangement enables the younger farmer to gain experience and income while allowing the landowner to remain connected to the business without being involved in the day-to-day activities and workload.  Both parties operate separate bank accounts.  Costs are split in line with the specific agreement and produce is also split in the same ratio.  From a legal perspective, with true share farming, no partnership is formed and they generally will run for a defined period of time, depending on what is agreed between the parties.  Each party retain ownership of their respective assets, thus making it easier to dissolve when the time comes.  Table 2 outlines some of the differences between the various Collaborative models.

Table 2: Comparison of Registered Farm Partnerships, Share Farming and Land Leasing arrangements

Not every collaborative arrangement involves a family successor.  Many farms are now exploring partnerships with neighbouring farmers or skilled operators seeking expansion opportunities.

Such arrangements can deliver:

• Economies of scale
• Improved labour availability
• Greater resilience during busy periods
• Enhanced use of machinery and infrastructure.

For farmers without a direct successor, these partnerships can also provide a pathway towards eventual retirement while ensuring the farm remains productive.

Some farmers may choose to retain ownership and management of the overall farm while leasing the more labour-intensive enterprises on the farm.  This allows a farmer to reduce workload significantly while generating income from existing infrastructure.  It can also provide an opportunity for a younger farmer to develop expertise and build a business without the capital requirements associated with purchasing land.

Contract rearing has become particularly common in the dairy sector.  Under this model, replacement heifers are reared by another farmer under contract.  The skills required for such enterprises are already grounded into the everyday experiences of existing dairy farmers and it is often felt that moving from dairy farming to rearing replacements for another dairy farmer will significantly reduce workload while still working with livestock that they are familiar with.

Benefits include:

• Reduced labour requirements
• Lower stocking pressure
• Better utilisation of grazing platforms for dairy farmers and thus a greater focus on the core milking enterprise.

For farmers looking to simplify operations, contract rearing can reduce management demands while maintaining production levels.

Some farmers stepping back from active farming may also consider alternative enterprises that require different levels of involvement.  These enterprises can complement collaborative arrangements and provide additional income streams while reducing labour demands.

Regardless of the route chosen, successful transition rarely happens by accident.

The most effective farm successions share several characteristics:

• Early communication within the family
• Clear expectations
• Professional legal, tax, and financial advice
• Written agreements providing legal protection
• A realistic timeline for change.

Collaborative farming arrangements provide practical tools, but they work best when integrated into a broader succession strategy.

Looking ahead, agriculture is entering a period where succession and business continuity will become increasingly important. Collaborative farming offers flexible solutions that recognise the realities of modern farming families.  Whether the goal is bringing a son or daughter into the business, mentoring a successor, reducing workload, preparing to step back, or creating opportunities for a young, trained farmer, there is no single “right” answer.  The key is identifying the level of involvement you wish to maintain and selecting the collaborative model that best supports your personal, family, and business objectives.  For many farmers, the future will not involve a sudden handover but rather a gradual transition—one built on collaboration, shared responsibility, and a clear plan for the next generation.

The above first appeared in Securing the Future of Irish Farms: Approaches for Generation Renewal (PDF), produced as part of Teagasc Generational Renewal Week 2026.