Generation Renewal Plan commended but more work needed

The ICMSA has commended Tirlán's Generation Renewal Plan but has expressed criticism of what it says is discrimination between applicants.

The President of ICMSA, Denis Drennan, has acknowledged the recent announcement by Tirlan, Ireland largest Co-op, of a dedicated plan to encourage the next generation into farming as both positive and necessary.

However, Mr Drennan said that changes would be required if the plan was not to defeat its own purpose.

He also specifically identified the repayment of the incentives offered by the co-op as “illogical” and “self-defeating”.

“We can’t understand why the Co-op would be insisting on repayment of the incentives they’d be giving successors," said Mr Drennan.

"It defeats the purpose of introducing incentives in the first place and works against the probability of getting those young farmers to commit," he added.

He also said his organisation was of the view that it was unfair that new entrants could be eligible for significant incentive payments while successors within families that had supplied Co-ops for years might not be.

Commenting on that particular issue he said: "We also think that it’s brutally unfair that new entrants with no previous individual or family connection to the Co-op are eligible for, say, €50,000 of ‘incentives’, while successors from within farm families that might have 50 years of supplying the Co-ops that went into Tirlan are not eligible?"

"That’s just downright odd and grossly disrespectful to the families that built up the Co-op and made it into what it is," he said.

"We’re not saying that the new entrants should be disadvantaged, but successors – whether new entrants or relatives of existing suppliers – should be eligible for all the incentives," he added.

He also commented: "There shouldn’t be discrimination in either direction."

Mr Drennan, who himself farms at Dunbell, said: “We do acknowledge the stance by Tirlán in introducing incentives for new entrants, successors and second unit."

"They are to be commended for that, and ICMSA will be meeting them to outline the few tweaks we think are required if this positive scheme is to encourage as many young and new farmers into the industry," he said.
"The costs associated with entry into dairy production are significant, and every boost that a successor or new entrant can get could be crucial in their long-term success, and we think that asking for repayment of these incentives is just self-defeating," he added.

He also said milk market volatility also caused difficulities.

"Given the extreme price volatility in milk markets that have affected the industry in the last decade, it could be extremely difficult - bordering on impossible - for a successor to repay these advance incentives if the market takes a downfall in that year," he said.

"That’s just a reality," he added.

However, he acknowledged Tirlan for recognising that something needs to be done to get young farmers involved in being successors.

"Tirlan are due credit for at least recognising that we have to actively put in place the measures to persuade young farmers to come forward as successors," he said.

"It’s something that the recent budget failed spectacularly to grasp," he added.

"But those incentives must be just that: incentives and not loans that could be due for repayment at a time when milk price wouldn’t allow for that."

He finished by saying the ICMSA would highlighting the members' concerns.

"We’ll be pointing that out and hoping that Tirlan recognise the reality and validity of our argument”, he said.