Sustainable Transition of the Rural Economy Through Generational Renewal
This project, a collaboration between Maynooth University and Teagasc, funded by the Department of Agriculture Food and the Marine (DAFM), highlights the importance of generational renewal for the sustainability of agriculture in Ireland.
Sustainable generational renewal programmes necessitate a dual focus. They require a framework of supports for adequate retirement income provisioning for retiring farmers (and their dependants) within a clear exit strategy from the farm. Secondly, a framework to provide farm successors and new entrants a formal route to farm ownership is required. Most farms in Ireland operate as sole-traders and this can hinder family-farm transfers and act as a barrier for new entrants. Collaborative farming and alternative farm business structures offer potential frameworks for families to farm together and for new entrants to join the industry, but to date have low adoption in Irish agriculture.
Findings
The findings on collaborative farming reveal diversity in business structures across Europe. In Ireland, there is potential for collaborative farming to address generational renewal. However, policymakers must carefully consider where to target growth due to the economic vulnerability of many farms. Farmers are motivated by the desire to involve the next generation. However, financial concerns and uncertainties about the future can deter them.
Regarding retirement income provision, many European countries have specific State pension arrangements for farmers. Ireland's system requires high contributions, up to 40 years, and has significant gaps due to non-mandatory registration and means testing. This has resulted in inadequate pension coverage, with only about 50% of farmers having private pensions. Farmers without private pensions plan to rely on the State Pension, family support, continued farming, and personal savings for income post-retirement.