Time to act: Succession and financial planning

For many families, succession planning remains one of the most difficult conversations that is had around the kitchen table. Martina Donnelly tells us more.

In an article earlier this year, Teagasc advisor Keith Fahy noted that “Succession is about far more than transferring land, it is about protecting the future of the farm business while ensuring fairness, financial security and stability for all involved.”

Delaying the discussion can create legal, financial and personal difficulties, while also limiting opportunities for the next generation. This issue is particularly important given the age profile of Irish farmers. Dr Emma Dillon of Teagasc has stated that the average age of Irish farmers is 58, with approximately one-third aged over 65.

In many cases, a successor is not given control or decision-making responsibility until their late forties or fifties. This can make it more difficult for younger farmers to invest in soil fertility, grazing infrastructure, livestock, buildings and labour-saving technology.

There are now a huge number of Department of Agriculture supports available and earlier transfer can also allow families to make better use of these. Depending on eligibility, young trained farmers may benefit from young farmer payments, enhanced TAMS investment ceilings and stamp duty relief. However, the rules are complex and professional advice should be obtained before any transfer takes place.

A practical starting point is an open family conversation. Parents should not assume they know which son or daughter wants to farm. All potential successors should be included in discussions. The decision should be based on interest, commitment, ability and the future needs of the farm, rather than tradition. James McDonnell, Teagasc has written about the UNITE approach, an acronym that can be applied when thinking about starting the farm succession conversation and developing the plan for your farm into the future.

The UNITE approach

Teagasc’s UNITE approach offers families a practical way to begin the conversation:

U – Unity: Plan together, not separately. A short, focused family meeting can help clarify that the purpose is to protect the farm business and support the family, rather than simply divide assets.

N – Nurture: Start early and build responsibility gradually with the next generation. Small responsibilities build confidence and management ability over time.

I – Identity and inclusion: Recognise the personal side of stepping back. For the older generation, farming is often closely tied to identity, status and daily routine. Their future role should be discussed openly, while every family member affected by the transfer should have an opportunity to be heard.

T – Tasks and trade-offs: Be practical about fairness and finance. Fair does not mean that everyone gets the same thing; fair means that everyone understands why the decision was made.

E – Execute: Make the plan active and review it regularly. Succession is a process rather than a single event, and small planned steps maybe more effective than one sudden handover.

There are many routes available to succession on farms, and it does not have to happen overnight. A Registered Farm Partnership can allow the incoming farmer to take on greater responsibility while the older generation remains involved. Other options include long-term leasing, share farming, contract rearing or working with a neighbouring farmer where there is no identified family successor.

Tax and legal planning are also central. Capital Gains Tax, Capital Acquisitions Tax and Stamp Duty may need to be considered, alongside Agricultural Relief, Retirement Relief and Young Trained Farmer relief. A valid will should complement all succession plans and be reviewed after any changes in family circumstances.

Retirement planning is equally important. Pension provision, PRSI records and future healthcare needs, including the Nursing Home Support Scheme, should form part of the wider discussion. Many transfers are delayed because the older generation still depends on farm income. Starting the conversation early gives families more time, more options and a better chance of securing the future of the farm for generations to come.

Transferring the Family Farm Clinics

These clinics are designed to help farm families through the process of transferring the family farm. Clinics are taking place in seven venues throughout the country.

See dates and venues for Transferring the Family Farm Clinics 2026 here