Partnerships

Registered Farm Partnership

Farm Partnerships, registered on the Department of Agriculture, Food & the Marine are becoming increasingly populaur and are viewed as being critically important to the future development of agriculture.

A Farm Partnership is where two or more farmers join resources and efforts in order to acquire various benefits. 

Benefits of Farm Partnership Include:

  • They are used to develop larger farm enterprises/increase scale by managing two previously independent enterprises together.
  • Help increase efficiency by consolidating land and facilities and by developing new management strategies and business plans.
  • Can be used to share decision-making power between members of farm families
  • Alllow partner(s) to maintain their individual Department of Agriculture Payments.
  • Allows for cattle included in the partnership agreement to mix without requiring permits.
  • Credit is split between partners in profit sharing ratio (Minimum of 20% if one partner is qualified young trained farmer)
  • TAMS II Ceiling of €180000.
  • Succession Farm Partnerships encourage the transfer of farm assets to the next generation.
  • Stock Relief Tax incentives

Succession Farm Partnerships

The objective of succession farm partnerships is to enourage the transfer of farm assets to the next generation of farners, whilst providing a level of protection for the transferors by allowing them to retain 20% of farm assets.

Benefits of Succession Farm Partnership Include:

  • Allows for the gradual transfer or farm & assets between 3-10 years (as specified in agreement)
  • Annual Tax credit of €5000 for max 5 years (from date of receipt of application to DAFM registration office)
  • Credit is split between the partners on the same ratio as the profit sharing in partnership.

TAMS

Under TAMS III, individual farmers can apply for grant aid of 40% (60% on certain investments) on investments up to a ceiling of €90000.. A Farm partnership containing 2 partners can benefit from 40% (60% on certain investments) of €180000 i.e €90000 x2. Where one of the partners is a qualifying young farmer, they can benefit from grant aid of 60% on the first €90000 and 40%(60% on certain investments) on the remaining €90000.

Collaborative Grant 

As an extra incentive to set up a Farm Partnership the department of Agriculture has a collaborative grant which allows you to potentially recoup 50% of the costs of setting up a partnership (Combination of Legal, Accountancy & Agriculture Advisory fees) to a maximum of €5000 cost i.e max grant of €2500 can be claimed. 

 

If you are interested in forming a registered Farm partnership or would like more informaton Contact us