Watch: O’Leary says inheritance tax relief and bigger farms needed

Ryanair CEO and beef farmer Michael O’Leary has recently called for inheritance tax relief and larger farms to attract young people to the agricultural sector. In an interview with Agriland’s Breifne O’Brien, O’Leary discussed various issues, including farm succession and generational renewal, and shared his views on the challenges and solutions for encouraging younger generations to enter farming.

O’Leary acknowledged that there are favorable tax structures in place for young people interested in farming or inheriting farms. However, he emphasized that the price and availability of land pose significant challenges for farm succession. “It’s much more difficult given the price of land in Ireland; how do you get young people into farming who are not able to inherit farms, and that’s going to be much more challenging,” he stated.

The business magnate highlighted the demographic changes in Ireland, predicting that the population will grow to six to seven million people within the next 10-20 years. As a result, he believes that average farm sizes will need to increase substantially. “I think what’s going to happen is average farm sizes are going to get significantly bigger,” O’Leary said.

O’Leary also addressed the issue of inheritance tax, suggesting that relief from this tax could encourage family farms to remain within family ownership. “The best way of encouraging family farms to stay within families is inheritance tax relief,” he remarked.

When asked about the future of smaller, part-time farms, O’Leary was blunt in his assessment. “I don’t see any role for the smaller part-time farms. The days of smaller part-time farms, the fella with 20 acres and 10 sucklers, they’re over,” he declared. He reiterated the need for larger farms and a younger workforce to adapt to the changing agricultural landscape.

In conclusion, Michael O’Leary’s call for inheritance tax relief and larger farms underscores the urgent need for policy changes to address the challenges facing Ireland’s agricultural sector. As the population grows and land prices rise, ensuring a sustainable and viable future for Irish farming hinges on attracting and retaining younger generations through targeted incentives and structural adjustments.