Institutional drivers of land mobility

Anne Kinsella, Cathal Geoghegan*, Cathal O’Donoghue**

Industry impact: During 2018, the OECD Working Party on Agricultural Policies and Markets (APM) became most interested in research methodology employed in relation to the institutional drivers of land mobility. Research was presented to the OECD, with reference to the impact of taxes on farm transfers and structural adjustment. It was highlighted as a unique research methodology applied at the farm level, with no comparable research applications found in literature internationally. The research, through micro-simulation modelling, focused on policy and taxation drivers. Long-term leasing income taxation incentives were applied to various farm scenarios. An OECD report on taxation in agriculture from the Trade and Agriculture Directorate, Committee for Agriculture (Ref: TAD/CA/APM/WP(2019)1) is forthcoming and references this research. The OECD is to explore future work in this area in collaboration with other network participants. In 2017, following publication of the research, direct correspondence was received from the Cabinet of Commissioner Phil Hogan referring to this research area and related research papers, with findings further discussed/circulated within DG-AGRI. Research was instrumental in providing more focused pre-budget submissions to the Agri-Taxation Review Working Group. Income stabilisation and taxation measures, including further incentives for longer-term leasing to improve land access for aspiring and expanding farmers were implemented, thus giving farmers more certainty in planning the long-term strategy for their business.

Correspondence: anne.kinsella@teagasc.ie

Contribution of non-research stakeholders:

Knowledge transfer specialists have facilitated dissemination of the research. Teagasc Agri-Taxation Submission Working Group (Fintan Phelan, Kevin Connolly, Thomas Curran, James McDonnell and Anne Kinsella).

Funding: Funding provided by Teagasc Walsh Fellowship scheme and Brendan Kearney and Associates, Economic Consultants.

*Former Teagasc Walsh Fellow/currently NUIG. **NUIG.