Fears for economic security the main reason for non-transfer of farms

ECONOMIC concerns have been identified in Teagasc research as one of the main stumbling blocks in the transfer of the family farm from one generation to the next.

According to the findings of a Teagasc research report, ensuring financial security for farmers intending to retire, or semi-retire, must be a central aspect of any future ‘generational renewal policy’.

One of the core concerns for dairy farmers as regards farm transfers to the next generation, the Teagasc research revealed, was the risk of ‘successor marital breakdown’.

“A majority of dairy farmers interviewed, highlighted that they were reluctant to transfer the farm to their successor because of the possibility that their successor would get divorced and the farm would have to be split up,” the Teagasc report noted.

The research – compiled by Brian Leonard, Mellows College, Athenry; Anne Kinsella, Teagasc, Athenry; Maura Farrell, NUIG and Marie Mahon, NUIG – showed that the divorce/farm-split factor was important even where successors did not have current partners.

Some of those interviewed suggested the possibility of pre-nuptial agreements – however according to Teagasc, such agreements in Ireland, generally have no legal standing.

The research – that feature in the latest edition of the Teagasc TResearch magazine – also noted that many farmers in Ireland rarely entered into full retirement.

For more, read this week’s Connacht Tribune.

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