Retiring farmers set to become the new landlords
Older farmers with no successors attracted by idea of tax-free income
The letting season is getting off to an early start, even though many are predicting there will be a shortage of land. However, it could be that the much-needed letting ground will come from an unlikely source — active farmers with no successors who are hanging up their wellies and looking to take advantage of the tax-free income from longterm land letting.
This trend that could mark the emergence of a new era in farming and land ownership in Ireland.
In a curious and ironic twist of history, the grandchildren or great-grandchildren of the tenant farmers who became landowners in the late 19th and early 20th century are now evolving into landlords themselves.
In Kerry, Eamonn McQuinn of McQuinn Consulting says active farmers letting land is a new feature of the market.
“Since the middle of October I have never seen so many farms coming up for lease,” he says. “Many of those leasing are older farmers and we must remember the demographics — a huge number of farmers are 65 and older.
“The letting market in Kerry is becoming a tenant’s market and it isn’t at all as hot as it was 12 months ago. There is a lot more confidence in people who want to take land.”
Blarney auctioneer Dan Fleming says age and the increasing demands associated with modern farming are tempting those without successors to look at letting.
Nenagh-based Eoin Dillon says there have been a lot of chats over kitchen tables in recent months and the realisation that sons and daughters are not coming back has sunk in — and even if they do come back they are not interested in farming.
He expects recently farmed holdings to be part of the letting market over the next few years.
116ac Tralee holding
A farm being let by Mr McQuinn on the outskirts of Tralee captures this situation in microcosm. The 116ac farm in ‘The Kerries’ adjoining Tralee mart is on the leasing market and can be taken in lots or as an entire.
It is made up of some of the best ground in Kerry. Half the land was most recently farmed for crops and the other half is in grass as the holding was home to two separate operations run by a fatherandson,whoarenowjointly letting the place as an entire.
“This is a fabulous opportunity to get a place of this quality, all in one block,” Mr McQuinn says. “It has lots of road frontage, plenty of access and will suit one or multiple tenants.”
Under offer at €37,000 or €320/ac per annum Mr McQuinn believes more will be offered before a deal is done.
127ac Cork dairy farm
Mr Fleming recently let a 30ac parcel of land in stubbles that fetched a rental of €430/ac and is negotiating the lease of a 127ac, fully equipped dairy farm at Grenagh near Blarney and is anticipating €400/ac on the basis of a 15-year lease.
Padraic Murtagh of James L Murtagh auctioneers expects most of his company’s leases to be simple turnovers since farmer landowners prefer to rent, albeit for a lower price, to someone they know and trust.