Lump sum payments for farmers to retire

Brussels has opened the door for Ireland to launch a new farm retirement scheme in the next Common Agricultural Policy (CAP).

Such a scheme could see farmers at retirement age receive “lump sum payments”, the director general of agriculture at the European Commission, Wolfgang Burtscher, has told the Irish Farmers Journal.

“Member states will have the possibility to support forms of co-operation among farmers that could include farm partnerships between older and younger generations of farmers.

“These partnerships may include actions such as retirement planning and lump sum payments for farmers in the retirement age who permanently transfer their holding,” he said.

Member states will have the possibility to support forms of co-operation among farmers that could include farm partnerships between older and younger generations

Over 30% of farmers in Ireland are aged 65 or over, with a further 25% aged between 55 and 64, according to the Central Statistics Office (CSO).

The last retirement scheme was in place in the late 2000s and farmers aged between 55 and 66 years of age could apply for up to €15,000/year for up to 10 years.

At the Irish Farmers Journal election debate in February, Fianna Fáil, Fine Gael and Sinn Féin all committed to introducing such a scheme as part of the next CAP.

Burtscher’s comments confirm commitments on lump sum payments to retiring farmers made by the former Commissioner for Agriculture Phil Hogan about retirement schemes in the next CAP.

Access to land is a major barrier to young farmers, with little incentive for older farmers to pass on their land. A retirement scheme would be expected to receive widespread support.

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