Planning for the future of the family farm
While more families are taking action, many still put succession on the long finger. Picture: iStock
Few topics stir as much emotion – or uncertainty – among farming families as succession. For many, the family farm is far more than a business. Deciding how and when to hand it on is not just a financial exercise – it’s about protecting a way of life.
While every family is different, the same challenges come up time and again. With the right planning, open communication, and expert advice, those challenges can be turned into opportunities – securing both the farm’s future and family harmony.
Ifac research shows that while more families are taking action, many still put succession on the long finger. The reasons are understandable – concerns about giving up control, worries over viability, difficulty choosing a successor, or simply not wanting to spark a family row.
But starting early brings clear advantages:
· Work through sensitive issues without pressure.
· Prepare the next generation with the skills and confidence to take over.
· Maximise tax reliefs such as Agricultural Relief and Retirement Relief.
· Plan financially for both retiring and incoming generations.
Leaving it too late can mean missed opportunities, unnecessary costs, and, in some cases, conflict at a time when families most need unity.
Choosing who will carry the farm forward can be the most sensitive step. Ifac’s Irish Farm Report 2025 found that one in five farm families have no successor identified. In many cases, children may be too young to decide, or may simply not be interested in farming.
If there is a willing and suitable successor, the process should include:
· Clarify necessary skills and training.
· Gradually involve them in decision-making, finances, and operations.
· Ensure they have a realistic understanding of the workload, lifestyle, and income.
If no successor is available within the family, options like partnerships, leasing, share farming, or transfer to extended family can keep the land in productive use while maintaining income for the retiring generation.
For one in five farmers, the farm simply doesn’t generate enough income to support two generations at the same time. This is a major barrier to succession – but also a chance to reassess the business.
Key questions to ask include:
· Can the farm sustain another two households?
· Are there changes in structure or operations that could improve profitability?
· Could diversification, off-farm income, or strategic investment boost viability?
Sometimes, a change in business structure – such as a registered farm partnership – can open up grant funding and allow more efficient use of resources.
Succession planning is as much about people as it is about land. Disputes often arise when expectations differ, or when conversations are avoided until decisions must be made under pressure.
It is critical to:
· Discuss succession early, involving all relevant parties – even those not directly involved in farming.
· Focus on fairness rather than strict equality. What is “fair” might mean different things for farming and non-farming children.
· Consider independent facilitation for sensitive conversations.
An agreed, structured plan helps ensure that everyone understands both the decisions made and the reasoning behind them.
Farm succession involves legal, tax, and financial complexities that can have long-term consequences. A strong advisory team – including a tax specialist, solicitor, and agricultural advisor – can guide you through:
· Structuring ownership for tax efficiency.
· Maximising reliefs and incentives.
· Drafting or updating Wills and Enduring Powers of Attorney.
· Managing the timing of asset transfers to protect income and security.
For example, transferring the farm early can, in some cases, reduce exposure to potential costs under the Fair Deal Nursing Home Scheme, which may otherwise require a portion of farm value to fund care fees.
Some aspects of succession planning are difficult to face, but avoiding them can cause greater problems later. These include:
· Death and incapacity planning – Wills, Enduring Powers of Attorney, and “Life Files” containing essential documents and instructions.
· Protecting the farm in case of relationship breakdowns – structuring ownership or retaining certain assets.
· Housing and retirement arrangements – deciding where the retiring generation will live and how they will be supported.
These topics may feel uncomfortable, but tackling them early creates clarity and peace of mind.
Succession planning is often portrayed as a technical process, but at its heart, it’s about family relationships. Strong communication leads to a stronger succession plan and builds confidence for the future. When handled badly – or left too late – it can lead to avoidable stress and division.
It’s worth remembering that you don’t have to make every decision immediately. The best plans often evolve over time, with flexibility built in to respond to changes in health, finances, and family circumstances.
By starting early, involving all stakeholders, and working with trusted advisors, you can create a plan that honours the past, serves the present, and secures the future.
Succession is not about “giving up farming” – it’s about giving the next generation the opportunity to build on what you’ve achieved, while ensuring your own financial security and peace of mind. The first step is the hardest: starting the conversation. The sooner you do, the smoother the journey will be.
Marty Murphy is Head of Tax with ifac. www.ifac.ie
