The successor must be less than 40 years old each year the tax credit is used. This encourages farmers to develop a concrete succession plan for the transfer of land assets. Thomas Curran, Agricultural Structures Specialist, Teagasc, has formed a working group to develop a standard follow-up agreement and an explanatory brochure on: Mr. Ben Roche, Collaborative Agriculture Advisor, Diarmaid O`Cathain and Eddie O`Leary (solicitor), James Byrne (accountant); Revenue Staff and Department of Agriculture, Food and the Marine staff. Both the farmer and the successor need detailed legal advice and tax advice from a lawyer and accountant before entering into the typical succession contract. An estate partnership uses an income tax incentive to encourage the transfer of agricultural assets such as land, farm buildings, CAP rights, livestock and machinery from the existing farmer to successors within 3 to 10 years after initial registration. Sean Bell, from the Department of Economic and Policy Planning at the Department of Agriculture, Food and Marine, said, « This agreement is very comprehensive and at the same time clear and concise. » Valerie Woods, of the Partnership Registration Office, said: « This system was designed to foster generational change, which is essential for the future of agriculture. By facilitating cooperation in a way that ensures the long-term financial security of the farmer and successor, this system will improve the efficiency of the farm by supporting good succession planning practices. Farmers who form an estate partnership can benefit from an annual income tax credit of 5,000 euros per year, for a maximum of five years, divided between the farmer and the successor of the partnership. Farmers must first enter into a registered operating partnership with their successors and benefit from the income tax credit, they must also complete Teagasc`s « Mein Plan mein Plan mein Plan » brochure and sign a legally binding succession contract. Estate partnerships are an incentive for income tax to encourage farmers to transfer agricultural activity to their identified agricultural successors or successors.
Existing partnerships registered with the Department can be transferred to the registry of the agricultural partnership that will follow it by meeting the additional criteria necessary for the incentive. The Model Succession Agreement and explanatory brochure can be downloaded in pdf format on Teagasc`s website at: www.teagasc.ie/rural-economy/farm-management/collaborative-farming/succession-farm-partnerships/ Farm Partnerships estate is a new complement to the collaborative farming options available to Irish farmers from 2017.