A Family partnerships is an excellent mechanism by which to operate the family farm. The partnership is given permission to use the land and other assets.
Adding a family member onto the herd number effectively creates a share or partnership arrangement. The next step is to register the arrangement with the Department of Agriculture, by doing this a registered farm partnership is formed.
A company can enter into a partnership with an individual. A registered farm partnership requires two existing farmers or an existing farmer and a young trained farmer. A fundamental principal of registered partnerships is that no partner is discriminated against by being part of a partnership but instead positively favoured.
Registered partnerships usually involve family or connected persons but can be entered into between two non-connected persons. Most family partnerships are single herd number, others could have two herd numbers merging.
As with any collaboration good communication, clearly defined roles, and transparency are required. Conflicts should be quickly resolved and Independent Facilitation availed of.
The Benefits of Partnership arrangements include:
- Partnerships are an excellent progressive arrangement, keeping both younger and older generations involved.
- Partnerships can have positive EU payment benefits including Young Trained Farmer Top Ups, and higher rates and thresholds for TAMS.
- Partnerships can offer tax saving opportunities through stock relief and personnel allowances.
- The partnership helps to define roles, develop a farm plan, and determine income split.
- Avoidance of the logistical problems and potential compliance concerns of multiple herd numbers farming together
- Partnerships can facilitate and safeguard succession management.
- Formalised partnerships can be registered with the Department of Agriculture, giving full recognition to the arrangement and the parties involved.
Registered Farm Partnerships require:
- All partners to be named on the herd number if a single herd number partnership.
- All partners and only the partners named on the partnership bank account
- The partnership to have a name, this can be the people involved or a registered name
- A list of all lands, assets and resources being made available to the partnership
- Formal registration for a minimum of five years with the Dept of Agriculture.
The Land Mobility Service can assist farmers in formulating partnerships or exploring options for their farm. The service can also provide Independent Facilitation.
Support grants are also available from the Dept of Agriculture to cover the costs associated with establishing a registered farm partnership. The service has templates of on farm agreements and formal partnership agreements.
For more information The Land Mobility Service can be contacted at info@landmobility.ie
Read more detail from The Land Mobility Service 2023 Booklet >>
