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 farming. 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 the agricultural sector.

O’Leary acknowledged that there are already 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 to 20 years. As a result, O’Leary believes that average farm sizes will need to increase substantially. “The people who are retiring and selling their farms, they’re getting more for the land and I think they’re entitled to do that,” he said. “I think the best way of encouraging family farms to stay within families is inheritance tax relief.”

When queried 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 shift towards a more professional and sustainable agricultural model.

O’Leary’s comments come as Ireland faces mounting pressure to address its agricultural sector’s challenges, including an aging farming population and the dwindling number of young people entering the industry. With the population set to grow, there is a pressing need for increased food production and efficient land use. O’Leary’s suggestions on inheritance tax relief and larger farms could provide a potential pathway to achieve these goals by making farming more attractive and financially viable for younger generations.

However, critics argue that relying solely on inheritance tax relief may not be sufficient to address the complex issues surrounding farm succession and the availability of affordable land. They contend that a more comprehensive approach is needed, including government-led initiatives to support young farmers, such as affordable credit, land acquisition programs, and improved infrastructure.

Despite these concerns, O’Leary’s call for action highlights the urgent need for change in Ireland’s agricultural sector. As the country navigates its demographic and economic challenges, finding ways to attract and retain young farmers will be crucial for the long-term sustainability of its farming communities and the nation’s food security.