• Policy drivers of farm succession and inheritance

      Leonard, Brian; Kinsella, Anne; O'Donoghue, Cathal; Farrell, Maura; Mahon, Marie; Teagasc Walsh Fellowship Programme; Royal Dublin Society (Elsevier, 18/11/2016)
      Farm succession and inheritance is increasingly considered a complex phenomenon which not only affects core dimensions of farm family life but also the agricultural sector more widely. Intergenerational farm transfer in particular is increasingly viewed as fundamental to the sustainability and development of global agriculture. In the majority of EU countries, the average age of farmers is increasing, while the number of farmers under 40 years of age is decreasing. There is growing concern that this demographic trend may have negative impacts on the agricultural industry because it is younger and not older farmers who are associated with more efficient and effective production practices. The question of what motivates decisions to transfer farms is a complex one, and research to date has not apparently enlightened agricultural policy to the extent that current trends towards an ageing farm population are being managed. This research aims to investigate economic and financial aspects of the policy drivers of farm succession and inheritance in Ireland to understand what it is about the policy environment that is failing to stimulate higher levels of farm transfer. It draws on the Teagasc National Farm Survey data which provides Irish data to the Farm Accountancy Data Network in the European Commission. A hypothetical microsimulation model is used to investigate economic factors of farm transfers, with scenarios created to test these factors and their impacts on the transfer process. The Net Present Value (NPV) of income streams for farmers and their successors are calculated to assess which scenarios have the highest/lowest financial effects. The findings illustrate a range of possible scenarios for farm succession/inheritance, with some results indicating that under current policy retaining a farm until death may be more economically beneficial to a farmer than transferring land before death.
    • The Potential of Farm Partnerships to Facilitate Farm Succession and Inheritance

      Leonard, Brian; Mahon, Marie; Kinsella, Anne; O'Donoghue, Cathal; Farrell, Maura; Curran, Thomas P; Hennessy, Thia; Royal Dublin Society; Teagasc Walsh Fellowship Programme (Institute of Agricultural Management, 01/05/2017)
      The rising average age of farmers and low level of young farmer entry is viewed as problematic on a global scale and farm partnerships are presented as a possible means by which farm succession and inheritance could take place in a timely manner. Using the example of Ireland, this research investigates a recent proposal by government to introduce a tax relief as an incentive for farmers to part take in farm partnerships. In this discussion, a hypothetical microsimulation model is used to investigate the possible outcomes of such a tax relief, with scenarios created to examine how this would materialise. It draws on the Teagasc National Farm Survey data which provides Irish data to the Farm Accountancy Data Network in the European Commission. The findings illustrate that even with a tax relief, cattle rearing farms would struggle to reap any economic benefit from entering a farm partnership, while their dairy counterparts would receive more value from tax reliefs. Results also indicate that farm viability will play a large role in whether or not collaborative farming is viewed as an option for farmers.
    • Risky (farm) business: Perceptions of economic risk in farm succession and inheritance

      Leonard, Brian; Farrell, Maura; Mahon, Marie; Kinsella, Anne; O'Donoghue, Cathal; Royal Dublin Society; Teagasc Walsh Fellowship Programme (Elsevier BV, 2020-04)
      Highlights • Generational renewal is high on the political agenda for agriculture, with young farmers linked to positive outcomes. • There are limited policy incentives for older farmers to consider engaging in the farm succession and inheritance process. • Farmers perceive risks and uncertainties regarding the transfer process, and thus avoid handing over to their successors. • Taxation, retirement income, long term care cost, and marital breakdown are motivations for farmers to retain ownership. • Financial incentives related to generational renewal must aim to alleviate the level of risk perceived by farmers.