Generational Renewal Week is taking place this week, highlighting career paths for young farmers, as well as supporting older farmers who want to take a step back from farming.
Considering that The Southern Star’s Farming Survey has found almost half of farmers do not have a will in place, the importance of succession planning cannot be understated.
Also covering tax and alternative arrangements like partnerships and share-farming, the Teagasc-run week-long event is giving people a chance to see real-world examples of what different types of succession planning looks like.
The average age of an Irish farmer is 59, and many are reporting that they have no successor for the farm, or others that have children who are not planning to return home to farm.
As part of Generational Renewal Week, farmers have heard from the likes of Gerard and Shane O’Connor in Roscommon, who are currently farming under a joint herd number and have recently begun the process of transferring the farm to Shane.
Meanwhile in Westmeath, a dairy walk is taking place on Friday September 12th on the land of of Tony McCormack and Chris Cahill.
Tony and Chris are unrelated, but have been farming together in a Registered Farm Partnership since 2022.
Case study
Tony McCormack’s farm is in Caddagh, Westmeath. Together with his father Seamus, Tony has expanded the farm to 115 hectares (111 adjusted), including 20 hectares that are leased.
In 2015, Tony took a more active role in the family farm, leasing it from his father. After eight years, ownership transferred fully to Tony, except for 50 acres given to his brother, which he now leases from him. Five years ago Tony decided that it was time for things to change, as his two daughters have willingly helped out on the farm over the years but, they currently have different career pathways in mind.
Tony knew that he still wanted to be involved in the running of the farm and therefore leasing was not an option he considered. However, managing everything alone was difficult, especially keeping up with technological advances and attending discussion groups. Employing a manager felt unsatisfactory, as responsibility would still fall on him. Instead, Tony sought a partner to share the workload and responsibility.
Tony found the land mobility service to be hugely helpful in finding what he needed, and gives a particular mention to Patrick Brady who guided him through the process. In April 2021, Tony advertised in the Farmers Journal for a collaborator, and by May, he had interviewed eight candidates, and Chris Cahill stood out, impressing Tony with his technical expertise, excellent grassland management (Chris runs a grass measuring business) and strong knowledge of breeding and fertility.
Chris and Tony spent several months negotiating and planning before formally establishing their registered farm partnership in January 2022, seven months after their first meeting. During this period, significant changes were made: Tony’s 100 cows and heifers combined with similar numbers from Chris; the 69-hectare grazing and silage platform was converted entirely to grazing; a new 20-unit milking parlour was built; and winter accommodation was expanded to support the larger herd.
They chose a registered farm partnership to qualify for increased TAMS funding. Finances are managed through a single partnership bank account. Tony took on the financial responsibility for capital investments, while Chris covers all labour, whether this is his own labour or external. All other farm expenses are covered by the partnership, and the profits are then split 50:50.
The partnership has now been running for three and a half years. An initial agreement was drawn up for 10 years; this was to allow for a portion of the investment in capital projects to be recovered. All of the plans that they had discussed during the initial negotiations in 2021 have now been implemented on the farm and the system is finally settling down after a number of years of significant change.
Tony and Chris meet monthly, generally around the time of the milk cheque being received, to discuss the finances on the farm, but could talk three to four times a day during the busy times of the year. In addition, although Tony is not officially involved in the day-to-day work on the farm, he is happy to cover milkings when needed and also covers the night calvings during the busy calving period as Chris is currently living about 20 miles away from the farm. Tony does discuss all the physical aspect of the farm with Chris, and so remains actively involved in the management.
Tony is very pleased with how the partnership is working and is optimistic it will continue beyond the initial ten-year term. The pair plan to revisit long-term plans in year eight, and this collaboration highlights how unrelated parties can successfully work together with clear, well-defined agreements and mutual commitment, requiring compromise from both sides.
