Mr. John Keane:

I thank the committee for the invitation to speak about Macra's vision for the future of farming. I acknowledge the Chairperson's continued support of Macra along with the recognition that as a sector there needs to be significant change in order to address the crisis that exists concerning generational renewal across Irish farms.

In addition to looking at the future of farming in Ireland, it behoves us to look at where farming fits into Irish society, and more specifically, Irish rural society. When speaking in the Seanad in September the Minister of State, Senator Hackett, referred to local businesses as "the beating heart of rural Ireland". Macra is in agreement with the sentiment that rural Ireland as a living, breathing entity only exists through the economic activity that is generated there. This economic activity is generated through many enterprises. However, as agriculture generates €15 billion each year Macra believes it must truly be the heartbeat of rural Ireland. I do not think any members of this Oireachtas joint committee would disagree with that statement. Agriculture has always been at the centre of rural Ireland and we hope it will always continue to reside at the centre. To be blunt about it, if there is no agriculture then there is no real rural Ireland.

In order for any enterprise to be sustainable, there needs to be a continual influx of new blood into the industry. In our industry, where only 5% of farmers are aged under 35 years, it is safe to call the situation a crisis. If we continue as we are farmers will be an extinct species in a short time. Any industry with an age profile similar to Irish agriculture can by any measure be classed as one in danger of extinction. Deputy Danny Healy-Rae told this committee last week that while it was once a privilege to be left landed, it is now seen by many as a curse. We are glad to state on behalf of our members that this is not the case for Macra; being given access to land to hold in trust for the next generation is still an honour, albeit one fraught with difficulty.

We have the best-educated agricultural workforce in the EU. This has been provided by our excellent third-level institutions. This education is backed up by the time many of our aspiring young farmers spend abroad to experience how farming operates in other jurisdictions.

Before we continue on to what is required to support young farmers to enter and remain in the industry, it is perhaps timely to look at what rural Ireland would look like without farming. Please be in no doubt, this is a realistic proposition as the age profile of our farmers has been continually increasing over the years. If this continues unabated, we will experience what the church has experienced in recent years in its demise. The lack of supports for young entrant farmers is tantamount to actively restricting access for new entrants to the industry. If we continue on this path, we will in effect clear the land. The land will go back to being unproductive. Allowing land to go fallow will increase our risk of food insecurity and not ensure that food is produced in the most sustainable way possible.

As a sector, it is evident that we have many challenges to overcome over the coming decade and beyond. The role of highly educated, highly motivated and forward-thinking young farmers will undoubtedly be crucial in tackling these challenges and ensuring the future sustainability of our sector. With the number of farmers under the age of 35 currently at less than 5%, fundamental change and targeted supports are required to address the decreasing numbers of farmers under the age of 35. A mere 20 years ago the percentage of farmers under 35 stood at 13%. Bearing this in mind, can we really justify continuing with more of the same to address the issue of generational renewal? Based on 2016 figures, 30% of farmers who are head of the holding are over the age of 65. This figure significantly increases when we look at those in more disadvantaged areas, especially those on uplands and peat soils. In the sectors predominately practised on these farms, a higher average age was observed. The percentage of specialised farmers with a high age profile was 41%. Cattle farms accounted for 39% compared to an average of only 15% in the dairy sector according to Teagasc national farm survey data. These figures have also shown sharp increases, particularly in cattle farming, rising from 27% in 2013 to 36% in 2017. The agrifood sector is one of Ireland's most important indigenous manufacturing sectors, accounting for employment of 167,500 people. It includes 700 drinks firms and we export food and agricultural products to more than 160 countries worldwide.

Food Vision 2030 was launched by the Minister, Deputy McConalogue, in 2021 with the ambition that Ireland will become a leader in sustainable food systems, SFS, over the next decade. It was stated that this would deliver many benefits for the agrifood sector, Irish society and the environment. In demonstrating the Irish agrifood sector meets the highest standards, it was hoped the economic, environmental, and social pillars of the strategy would provide future competitive advantage for the sector.

Four missions were outlined under Food Vision 2030. Mission 1 was to create a climate smart and environmentally sustainable agricultural sector; mission 2 was to create viable and resilient primary producers with enhanced well-being; mission 3 was to produce food that is safe, nutritious and appealing, trusted and valued at home and abroad; and mission 4 was to create an innovative, competitive and resilient agrifood sector, driven by innovation at its heart.

For many years, Macra na Feirme has identified several barriers to entering farming. We have consistently highlighted that these barriers prevent access to farming for many young people. The main areas we focused on have continually been barriers around access to land; access to affordable unsecured finance; support and knowledge transfer; the creation of a good lifestyle; financial security and earning capacity; an ever-changing policy environment; lack of investment for capital development; and supporting multiple generations from the on-farm business. Addressing the barriers is no quick fix. Land access remains a huge challenge for young people. Greater support for the land mobility service is required and greater security is needed for older farmers to step back from farming and remain financially secure. With land prices increasing at rates not seen for decades, significant investment is needed to support young people to become competitive in the sector.

Affordable finance is the second major barrier that exists for young people entering farming. The need to invest in infrastructure, livestock and management tools on-farm is extensive and expensive. Many young people who have a limited track record with financial institutions find it very difficult to access finance. Therefore, a specific low-cost finance option specifically tailored for young farmers must be established to facilitate the option for finance. For many years, Macra has outlined a succession scheme which we have detailed and which we feel aptly fits the needs of older farmers in terms of their financial security and couples support for young farmers who are taking over the farming process. The scheme addresses the worries that older farmers have around financial security should they step back from farming. Moreover, with additional support for young farmers it also allows these young people to secure a living while also having a lifestyle that is comparable with their peers. It would also allay fears that the farm business will not be able to support multiple generations, which is a major barrier to land transfer and entry. The sector must provide pathways for young people to enter into it. It cannot be the case that the only viable route to farming is via your parents or a blood relative who is a landowner. It is comparable with saying to young people they can only become a mechanic if their parents own a garage. Limiting access to a small number of young people will do little to ensure the long-term viability and growth of rural areas and the communities which depend on them.

Many opportunities exist in agriculture and Macra is a strong proponent of those opportunities. We need to take advantage of them with flexible tailored support and with sound policy that delivers for the future. Some of the opportunities that exist include meeting the ambitions of the environmental agreements and targets set out under many Bills, including addressing the age gap that is currently on farms. The ambition and willingness of young farmers to take over new, smart, friendly and precision agriculture practices is one we feel must be adopted. Young farmers are more likely to adopt new technologies, while older farmers are more likely to be slow to take them up. We have outlined within our submission much of the supporting evidence and research conducted in recent years and decades to highlight the issues and to show that young farmers, backed up by peer-reviewed science, are more likely and more willing to take up new technological advancements on farms.

Diversification is a buzz word that is mentioned consistently by many Government politicians as the way forward for Irish agriculture. Macra agrees with this. However, merely saying that it is needed will not result in any changes on the ground. What is needed is targeted investment in the areas that can offer income for farmers, while also having an environmental and societal benefit. The areas where Macra sees huge opportunity but a lack of investment and creation of pathways include on-farm energy production; anaerobic digestion; agri-tourism; production of energy crops; high nitrogen use efficiency system farm models; and organic farming models driven by market demand. In order to realise these opportunities, we need a complete rethink of policy. The constant push for reduction of production and restriction without the inclusion of efficiency is a policy fundamentally flawed. Where there is opportunity in the sector, there is no point in slowly closing the doors.

Generational renewal is the largest threat to agriculture. The figures speak for themselves. Unless we continuously develop generational renewal, the future for agriculture in Ireland is non-existent. There is one school of thought that generational renewal should be a function of the free market. This would be the easiest and simplest solution. However, if we look at the current land market and the exceedingly high prices being paid for the purchase of land, it cannot be the case that young farmers are expected to compete with established peers who operate within the market. Macra is calling for supports for young farmers looking to enter the industry. These include but are not limited to some of the points we outlined above with regard to access to land and finance, knowledge transfer, support through learning and technological investment.

Finally, as Irish farmers we feel we have a unique role to play in meeting the climate change challenge. However, it must be done in a fair and balanced way. Dealing with climate change provides an opportunity for young farmers who will adopt the practices and the best solutions science has to offer. Irish dairy and beef output is extremely efficient from a carbon footprint perspective. Irish milk has one of the lowest footprints in the EU, while Irish beef has the fifth lowest. Despite this, many would lead us to believe the carbon efficiency of expanding milk production in Ireland has been displaced by approximately 4 million tonnes of carbon, which would have been emitted by an equivalent dairy production outside Ireland. As young farmers we have an ambition and target to engage in the practices that are needed from an environmental point of view and to adopt the practices that will lead to higher economic returns but will also be beneficial to the environment, which we have detailed.

The future of agriculture in this State is in a perilous condition, with the age profile of farmers continually increasing and the proportion of young farmers entering the industry on the wane. Urgent remedial action is needed to continue. It must be a whole-of-policy approach, must be cross-governmental and must be a science-based approach to developing a future for young farmers.

In all future policy aspects, Macra requests and foresees that any policy development be impact assessed for its overarching effect on generational renewal. We see that many of our policy instruments are assessed for their economic and environmental impact but their impact on the next generation is missing. Macra would like to see and supports the calls for an inclusion of a greater number of young people, as well as the inclusion of greater female representation across the sectors. Macra welcomes the continued support of this committee and its members and looks forward to answering questions.