Oireachtas Joint and Select Committees

Wednesday, 1 December 2021

Joint Oireachtas Committee on Agriculture, Food and the Marine

Common Agricultural Policy and Young Farmers: Engagement with Macra na Feirme

Mr. Shane Fitzgerald:

I will give a broad perspective on the first point the Deputy made about generational renewal. I agree with all of the points made about the succession scheme. Earlier the Chair also mentioned how important it is that the older generation feel comfortable and confident enough to pass on the farm to the next generation.

Last Friday, we had our national conference and Mr. Declan McEvoy of IFAC Accountants made good points on what happens on farms. As Mr. Keane mentioned, there is a succession scheme. Obviously there must be a transitional period beforehand. The whole area around a conversation and communicating about a succession scheme between the parents and their child or whoever is going to inherit the farm must happen early. That communication is nearly the biggest barrier and in a lot of cases, such communication does not happen soon enough. It is by starting that conversation that you can get the ball rolling and then look at gradually transferring the land.

As for the early retirement scheme, the name of the scheme was probably the biggest mistake as everyone knows that farmers do not retire and they definitely do not retire early. I think that the older generation still must be involved in farming. While there is a fear that the older generation will still have control and will not hand over enough responsibility, it is important to strike the right balance because farming requires experience, youth and education. Once things are done in a transitional way, then the farm succession partnership model is one that can be built on. Mr. Declan McEvoy mentioned points on a possible top-up in that regard as well and I think that is the approach that has to be taken.

I will make a general comment on generational renewal, why numbers are so low and why it is going in the wrong direction. You need to put yourself in young farmers' shoes - and those of all farmers - and the problem is there is so much uncertainty about the future. The goalposts are changing the whole time between carbon budgets, nitrates and everything else. As things are constantly changing every week or two, young farmers find it very hard to plan ahead. It is very hard to entice young people to join the industry when there is so much uncertainty.

The Common Agricultural Policy has been mentioned. In terms of the eco-schemes, we welcome the new proposal that is on the table but the original five proposals were all about reduction. There was nothing really there for progressive and highly educated farmers and when young farmers see that it is not going to entice them into the industry, which is the biggest concern. A lot of farms all over the country do not provide enough income to support two farm families, which again is not going to encourage generational renewal.

It is important to have a clearly defined roadmap for farmers and young farmers in general. Mr. Keane has already mentioned access to credit, which is a huge barrier for young farmers. You cannot put a plan in place if you do not know the number of livestock or land area involved. How can you get finance from the banks if you do not have these projections? We must plan from year to year and there is no other industry that does that. I mean everyone else can plan for five or ten years ahead. Farmers need to have a clearly defined roadmap, need more certainty and need to be supported.

As we have constantly stated, young farmers will step up to the plate to tackle environmental challenges and meet targets. At the moment, we know that we probably can only get to approximately 18% by adopting new technologies such as low-emission slurry spreading and using multiple species of clover. We rely on research or a silver bullet to come along to reach 22% or 30% because if we do not then there will have to be reductions. It is important that there is funding and support for Teagasc and for research, that people are educated and that young farmers are supported because we are the ones who are going to adapt to the changes faster and we need to be supported to make these changes. If young farmers do not join the industry then we do not have a hope of meeting these targets.