As reported last week, contract-rearing of dairy heifers has been the most popular arrangement in the first two years of the Land Mobility programme co-ordinated by the YFCU and the UFU.

With a total of 28 arrangements facilitated in the first two years, the programme is off to a positive start.

However, given that its main aim is to break down some of the barriers that prevent young farmers accessing land, it is questionable whether contract-rearing of heifers readily delivers against that objective.

In most cases, a contract heifer-rearing arrangement is done between two existing farmers. Of course it can benefit both parties. However, it is highly reliant on trust between two people who can work together.

Reports from the dairy co-ops would suggest that there are more livestock farmers interested in becoming contract-rearers than dairy farmers willing to hand over the responsibility to rear their heifers to someone else.

Where the land mobility programme can deliver real change is in facilitating long-term leases of land, effectively giving a young farmer the security to get a sustainable farm business up and running.

The experience of the equivalent programme in the Republic of Ireland is that long-term leasing arrangements are very popular, but that popularity only came after the Irish government stepped in and offered tax breaks to landlords.

For a lease of over five, and up to seven years, annual rental income of up to €18,000 is exempt from tax, moving in stages to a maximum of €40,000 where the lease is over 15 years.

In 2018, the Irish programme delivered 521 arrangements, of which only 81 were some form of contract arrangement, compared to 223 long-term leases.

It is therefore no surprise that John McCallister, who manages the programme in NI, has repeatedly called for similar tax incentives from the British government.

The evidence is there to prove it would have a lasting and positive impact.

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