Farm Ireland
Independent.ie

Saturday 18 November 2017

Farmers opt for long term leases as 25,000 acres of land 'changes hands'

Long Term Leasing has proven to be the most popular arrangement type, mainly driven by the tax benefits to landowners
Long Term Leasing has proven to be the most popular arrangement type, mainly driven by the tax benefits to landowners
Ciaran Moran

Ciaran Moran

Since its inception in 2014 the Land Mobility Service has facilitated 282 arrangements covering 25,000 acres.

Established with the aim of delivery of land mobility and access to land through collaborative farming arrangements, its Director Ausitn Finn has said the service has demonstrated that with dedicated independent expertise, farmers can be facilitated to enter into new collaborative arrangements leading to a better return for both the farmer and the landowner.

He outlined to a Teagasc Share Farming event in Cork recently that presently there are 140,000 farms in Ireland and it is projected that 25pc of farms will make a significant change in the next ten years. That represents 35,000 farms.

“The service is responding to a need and is delivering. Key to this success has been the independent and expert facilitation provided by the service.

“The service works for a sustainable arrangement that delivers for all parties, rather than representing individual parties,” he said.

To date Finn outlined that a breakdown of the arrangements facilitated by the Service is as follows; farm to farm (contract rearing, cow leasing, contract production) 13pc, share farming 18pc, partnerships 20pc, long leases 45pc and currently in transition/ exact arrangement type not yet determined 4pc.

Finn said while long term leasing has proven to be the most popular arrangement type, mainly driven by the tax benefits to landowners, there is a big spread of other arrangement types.

“Share farming and dairy partnerships have a very interesting place in circumstances where landowners may not yet be fully ready to retire, or where the landowner gets involved in necessary investment or a young person has not got the finance/ equity to take on a lease.

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“Share farming is also proving to be an effective mechanism as part of expansion or taking on an additional unit,” he said.


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