Viable cattle enterprises face more challenges in relation to identifying a successor than farms of this type that are unviable, according to new research.

The analysis was published in Euro Choices, a European academic journal on agricultural policy. Two of the four authors were from Teagasc - Emma Dillon and Anne Kinsella.

The research found that on beef-producing enterprises, which account for 55% of commercial farms in Ireland, it is more likely for unviable farms to have a successor than those that are viable.

Just under 60% of unviable suckler enterprises and just over 60% of what are classed as unviable other cattle enterprises have a successor.

In both cases, less than half of suckler and other beef farms which are deemed to be viable have a successor.

Challenges

“Economically viable cattle farms face challenges with generational renewal. This could be due to the greater labour intensity and management responsibility associated with operating more commercially focused cattle farms, while the less viable extensive farms tend to be less demanding in terms of time requirements and therefore provide scope for participation in off-farm employment.

“Relative to viable farms in other systems, viable cattle farms appear to have a relatively low proportion with an identified successor,” the research article states.

This is the opposite to all other farming sectors in Ireland, where it is much more likely to have someone to take over the farm if it is deemed viable.

This is particularly the case in relation to tillage. Less than 40% of unviable tillage farms have a successor, the lowest of any sector.

Sheep farms - viable and unviable - appear to have a relatively high percentage with a successor identified.

The research stated that previous censuses of agriculture found “that succession intentions are relatively strong for sheep farms”. However, it added that more research is needed into the reasons behind this.

Young people working on farms

The percentage of farms with a young family member (40 or under) working on farms was also looked at.

The research found that one-third of specialist dairy farms have a young person providing at least 200 hours of labour per year.

The comparative figure is 27% for sheep farms and is slightly lower for tillage and cattle systems.

“The relatively high incidence on sheep farms is likely influenced by the seasonality of labour demand on those farms at lambing time,” the article said.

The researchers added that this paints generational renewal in Irish farming in a more positive light.

“Data on family labour input provides a more optimistic picture on the demographics of Irish farming than is apparent from solely focusing on the age of the farm operator.

“Despite this, the 2020 census of agriculture reported that only 13% of farm holders in Ireland are aged below 40 years, highlighting the problem of delayed succession in terms of managerial control on Irish farms.”

Dairy analysis

One of the final pieces of analysis undertaken was in relation to viability and succession on dairy farms.

For this, clusters of dairy farmers were looked at in terms of their average farm income per labour unit. How many had a successor was calculated.

Perhaps unsurprisingly, having young people in the household appeared to be a big driver of having a successor.

The group with the second-highest farm income had 1.76 household members between 16 and 44, the most of any group, an almost 70% of these farmers had identified a successor.

Those earning slightly more had 0 young household members and 44% had a successor. Dairy farmers with a significantly lower farm income had 0.96 young household members and 53% had a successor.

“Social factors such as farm-related stress or absence of younger family members seem to be just as important in the context of dairy farm succession,” the report said.

This research utilised multiple Teagasc national farm surveys.