Why are farmers not transferring the farm?

Keith Fahy, Teagasc Drystock Advisor, Athenry, Co. Galway discusses the importance of timely farm transfers to ensure long-term viability.

Sustainability is a term that comes up regularly when advising farmers about their farming systems and how we can ensure farms remain viable and profitable while also enhancing the environment. Sustainability can be defined as the “ability to maintain ecological, economic, or energetic systems at a steady level without exhausting natural resources or causing severe environmental damage.” It involves avoiding the depletion of resources to ensure long-term ecological balance and viability.

Farmers have long been implementing a wide range of practices to reduce their greenhouse gas emissions and overall carbon footprint, whether measured per litre of milk, per kilo of beef or lamb, or per tonne of grain. When assessing individual farms, it is important to consider both environmental sustainability and the long-term viability of the business, particularly when farms are not being transferred to the next generation at an appropriate time.

As a farm advisor with Teagasc, I am currently assisting farmers with scheme applications, including BISS, CRISS, ANC, and ECO schemes, among others. One aspect that stands out this year is the age profile of the farmers I am working with. As part of the Teagasc database, we collect farmers’ details, and this year we are also recording their dates of birth. It is far more common to encounter birthdates in the 1940s or 1950s than in the 1980s or 1990s. This raises the question – why are farms not being transferred to the next generation earlier?

Incentives like young farmer top-ups and higher TAMS grants are available only to farmers under 40 with an agricultural qualification. Stamp duty exemptions apply to young, trained farmers under 35 when purchasing or transferring land. These age limits exist to encourage the transfer of farms to younger farmers.

In many other professions training or education typically takes four to five years. After this, individuals are qualified to start their own business or seek employment. So why aren’t farms being transferred to farmers of a similar age, especially when their parents are nearing retirement? When someone receives a farm in their late twenties or early thirties, they are more likely to invest heavily in soil fertility, grazing infrastructure, stock, and buildings because they anticipate farming for many years. By contrast, someone inheriting a farm in their late forties or early fifties is less likely to make long-term investments.

It is encouraging to see some farm families beginning to discuss the future of their farm, but in many cases, these conversations are not happening. According to Dr. Emma Dillon, Senior Research Officer with Teagasc, working with the National Farm Survey, the average age of Irish farmers is 58, with one in three farmers (33%) over the age of 65.

For those considering farm transfer, information is available on the Teagasc website. Teagasc also runs Transferring the Family Farm clinics each year, which are always well attended.

Other organisations and professionals are also equipped to provide guidance on this topic. I would advise any farm family to sit down and ask the next generation if they are interested in taking over the farm. If they are, engage your local farm advisor, solicitor, and accountant, these professionals can greatly assist with the process. If the next generation is not interested, other options such as leasing, forestry, or farm partnerships are available.