Should 10% of CAP Be Ring-Fenced for Young Farmers? Why the Debate Matters for Irish Agriculture

Introduction

One of the biggest challenges facing Irish agriculture today is not milk prices, environmental regulations, or international trade. It is the growing shortage of young people entering farming.

Across Ireland, the farming population is ageing rapidly, while fewer young people are taking over family farms or entering the industry for the first time. As a result, concerns about the future of Irish agriculture have become increasingly prominent at both national and European level.

That concern was highlighted recently when Irish MEP Maria Walsh called for 10% of the post-2027 Common Agricultural Policy (CAP) budget to be ring-fenced specifically for young farmers and generational renewal.

The proposal has sparked an important debate about what the future of farming should look like and whether current supports are sufficient to attract the next generation into the industry.

The Demographic Challenge Facing Irish Agriculture

The latest CSO figures highlight the scale of the challenge. The average age of an Irish farm holder is now 59.4 years, while 37.8% of all farm holders are aged 65 or older. That represents more than 50,000 farmers nationwide.

In contrast, just 4.3% of Irish farm holders are under the age of 35, equivalent to only 5,791 young farmers across the country.To put that into perspective:

• Nearly 38 out of every 100 Irish farmers are aged over 65.
• Just 4 out of every 100 are under 35.
• There are almost nine farmers aged over 65 for every farmer under 35.
• Maria Walsh has also highlighted that the number of Irish farmers under the age of 35 has effectively halved over the past 20 years.

These figures have raised concerns about who will be managing Irish farms in the decades ahead.

Why Are So Few Young People Entering Farming?

For many young people, the barriers to entering agriculture have never been higher. Modern farming requires significant investment before a business becomes profitable.

Young farmers often face challenges such as:

• High land prices.
• Rising machinery costs.
• Expensive farm infrastructure.
• Difficulties accessing finance.
• Income uncertainty.
• Increasing regulatory requirements.

For those without access to a family farm, entering agriculture can be particularly difficult. Even where succession opportunities exist, younger farmers may have to wait many years before ownership or management responsibilities are transferred. This can delay investment decisions and make long-term planning more difficult.

Succession Planning Remains a Major Issue

The future of many Irish farms depends on successful succession planning. However, the latest CSO Farm Structure Survey found that only 47% of farm holders have a succession plan in place. This means that more than half of Irish farms currently have no formal plan regarding future ownership or management.

Without succession planning, farms can face uncertainty around:

• Ownership transfer.
• Investment decisions.
• Business expansion.
• Long-term sustainability.

Many experts believe improving succession planning could be one of the most effective ways of supporting generational renewal within Irish agriculture.

Why CAP Funding Matters

The Common Agricultural Policy remains one of the most important supports for Irish farming.

CAP funding helps support:

• Farm incomes.
• Environmental schemes.
• Rural development.
• Investment grants.
• Farm modernisation.

For many farms, particularly smaller family farms, CAP payments represent a significant proportion of annual income.

Supporters of Maria Walsh's proposal argue that if agriculture is serious about attracting young people into farming, then generational renewal must become a central priority within future CAP programmes.

Rather than treating young farmer supports as a small component of agricultural policy, they believe dedicated funding should be guaranteed.

What Could Ring-Fencing 10% of CAP Funding Achieve?

The proposal would reserve a dedicated portion of future CAP funding specifically for measures supporting younger farmers.

Potential benefits could include:

• Increased start-up supports.
• Improved succession incentives.
• Better access to finance.
• Enhanced training and advisory services.
• Support for land mobility initiatives.
• Greater investment in innovation and technology adoption.

Advocates argue that younger farmers often bring fresh ideas, new technologies, and a greater willingness to adopt environmental and digital innovations. By supporting younger entrants, policymakers hope to strengthen the long-term competitiveness of European agriculture.

Why This Matters Beyond Farming

The debate is not simply about supporting individual farmers. Agriculture remains one of the most important economic drivers in rural Ireland. According to the CSO, there were 299,725 people working on Irish farms in 2023, representing an increase of 11.2% compared with 2013.

Farm businesses continue to support:

• Agricultural contractors.
• Machinery dealerships.
• Veterinary services.
• Feed suppliers.
• Local businesses.
• Rural employment.

When fewer young people enter farming, the effects are often felt throughout entire communities. The future viability of many rural towns and villages remains closely linked to the future viability of farming itself.

Irish Agriculture Is Already Changing

The structure of Irish farming continues to evolve. The latest CSO figures show that Ireland had 133,174 farms in 2023, representing a decline of 4.6% since 2013.

At the same time:

• Average farm size increased to 34.7 hectares.
• The number of farmers aged 65 and over increased by 33.6% over the decade.
• The farming population continued to age.

These trends point towards a sector that is becoming increasingly concentrated while struggling to attract younger entrants.

Is Ring-Fencing CAP Funding the Right Solution?

There is no single solution to the challenge of generational renewal.

Improving access to land, encouraging succession planning, strengthening farm profitability, and increasing access to finance will all play important roles.

However, supporters of the proposal argue that dedicated CAP funding would send a strong signal that attracting younger people into farming is now a strategic priority for Europe.

Whether the proposal ultimately succeeds remains to be seen.

What is clear, however, is that the demographic challenge facing agriculture is becoming increasingly urgent.

Conclusion

Irish agriculture has always adapted to changing circumstances.

But the ageing profile of the farming population presents one of the most significant long-term challenges the sector has faced in decades.

With an average farmer age of 59.4 years, 37.8% of farmers aged over 65, only 4.3% under the age of 35, and just 47% of farms having a succession plan in place, the need for generational renewal has never been clearer.

The debate around ring-fencing 10% of CAP funding is ultimately about more than agricultural budgets.

It is about ensuring that Ireland has enough young farmers ready to take over the land, embrace innovation, support rural communities, and secure the future of Irish agriculture for generations to come.

*By Anne Hayden MSc., Founder, The Informed Farmer Consultancy.