Mandatory retirement package for farmers top of Macra's CAP report

Macra na Feirme presented its policy document, produced after a series of regional member meetings, to Commissioner Phil Hogan in Brussels on Wednesday.

Among the recommendations was a proposal for farm succession, which suggests that upon reaching 63, it becomes mandatory for all farmers to complete a farm succession plan.

From the age of 65 to 70, Macra proposes that farmers receive a transition payment in order to both facilitate and support their exit from the industry.

Any farmers who wish to continue to receive a CAP payment beyond the age of 70 would need to get involved in a collaborative arrangement.

“Much heated debate has taken place in Ireland around older farmers receiving a statutory pension and basic payment together and therefore being financially better off upon reaching retirement age. Such a scenario is by no means justifiable to European taxpayers,” Macra said.

Continued farming income after retirement

The land mobility and succession study which was carried out by Macra found that two out of five farmers without farming successors would like to retire from active farming in the future and a further 45% would like to retire.

The study also found that 18% of older farmers felt the need to earn an income from the farm when they were no longer able to farm it themselves.

Macra argued that such a retirement plan should be included in a new definition of an active farmer, as well as implementation of a minimum agricultural activity and mandatory completion of a five-year business plan.

For the next model of CAP, Macra is also recommending greater use of financial instruments and said their unrealised benefit can be seen particularly by young farmers. Over 65% of respondents in Macra’s CAP 2020 survey admitted to having little knowledge of financial instruments, with 25% having no knowledge at all.

To improve this, Macra suggested establishing a mandatory risk management of financial instruments under each country’s Rural Development Programme.

Next CAP critical

Macra warned that how CAP 2020 is shaped will be one of the most critical since its inception in 1962, as European agriculture faces very real and serious threats.

It also said that Brexit cannot be used as a scapegoat to lower the level of support farmers receive, as the level of EU funding is likely to decrease as the UK leaves the European Union.

Meanwhile, Macra has also argued that agricultural education should become mandatory under the young farmer definition and over 90% of young farmers were found to be in favour of such a move.

Analysis implemented in the Irish agri-taxation review in 2014 indicates trained farmers have 12% higher levels of output compared with their untrained counterparts. Therefore, a mandatory educational criteria will produce a more innovative and progressive cohort of young European farmers, Macra said.

Read more

CAP consultation has to be about what type of food we want

Full coverage: CAP