“The low level of land mobility in Ireland is one of the main structural challenges facing the dairy sector and is a significant obstacle to dairy expansion in the years ahead. Making it easier to access land is vital to allow dairy farmers increase their productivity levels,” said Jerry Long from Drombane Co-operative Society and Chairman of the ICOS Dairy Committee.

Recently elected Chairman of the ICOS Dairy Committee, Mr. Long was speaking as he participated in the Teagasc Land Use Change Workshop and Farm Succession and Inheritance Conference, in the RDS, Tuesday, 19May 2015.

Jerry Long said,  “ICOS strongly recommends a balanced and sensible approach to the expansion of the dairy sector. On the one hand, this must support farmers who want to consolidate at their existing levels, and on the other hand it must support farmers who want to expand.  Access to land is a critical obstacle which can prevent these farmers increasing their productivity levels.”

“The volume of land for sale in Ireland is marginal with less than 0.5% of the total land area in the country switching hands each year. Moreover, the purchase of land is too costly for the vast majority of farm families. The rental market is dominated by short term or conacre arrangements with 1M hectares of land rented in this manner on an annual basis.”

“Practical and effective agri-taxation measures are crucial to support the expansion of the Irish dairy sector in the years ahead. We need to build on the measures contained in Budget 2015, relating to long term leasing, which has a number of practical benefits over the conacre system and needs to be promoted and endorsed by all stakeholders.

“Family partnerships, share farming and share milking are additional options, which require careful examination due to their potential to promote land mobility and succession planning.”

Mr Long concluded “On the other hand, the age profile of Irish farmers is increasing with only 6.2% of farmers under 35, while more than 25% are aged over 65 years of age.

“On a worrying note, 50% of farmers over 50 years have yet to identify a farm successor. It is absolutely essential that farmers are provided with adequate information and advice on succession, inheritance and retirement planning.”

ICOS (the Irish Co-operative Organisation Society) represents co-operatives and organisations in Ireland – including the Irish dairy processing co-operatives and livestock marts – whose associated businesses have a combined turnover in the region of €14 billion, with some 150,000 individual members, employing 12,000 people in Ireland, and a further 24,000 people overseas.