The Gazette 1980

GAZETTE

JULY-AUGUST

from the true facts as to lead one to the conclusion that this belief is based on ill conceived notions, or is the consequence of uninformed comment of a most harmful' nature. Statistics are available to show clearly that the vast majority of farms have an area of 50 acres or less and a very large percentage are under 30 acres, the smaller farms being usually found north west of a line drawn approximately from Dundalk to Limerick, with some exceptions. Since 1930 there has been a slow, but nonetheless significant change in the structure of farms. The number of farms of 30 acres and less have decreased on average by 12 per cent and the larger farms over acres have decreased in number. There has been approximately a 15 per cent increase in the number of farms in the region of acres to acres. Underutilization is greatest in areas where the average farm is between 20 and 30 acres. CON-ACRE AND GRAZING Over the years the area of lands set out in con-acre or for grazing has averaged around 6% of all farmland. The existence of a con-acre and grazing system on the eleven months basis is proof, if proof be needed, on the one hand of the reluctance of land owners, who for one reason or another are unable to farm themselves, to sell or dispose of the farm and on the other hand is proof of the availability of young hard working eager farmers, who are prepared to rent lands to enlarge the area they farm and thus make their farming enterprise more economical. The cost of land in recent years has also made the con- acre grazing eleven month system attractive to the two parties involved. Letting out land in this fashion is bad in the long run, in that the land runs down in quality, due to over-cropping or grazing with the owner and the occupier each as a rule failing to put anything back into the land in the nature of fertilising or in improving or creating greater utilization. It is clear from the many reasons mentioned that ways and means must be found whereby our land can be put to greater and more extensive use and whereby the reluctance to dispose of land and the problems of the family farm can be surrmounted. How can this be achieved and what part, if any, can we as Solicitors play? By reason of the possessiveness to which I have referred, I believe that any attempt to have owners of under-utilized lands part with ownership, either by offering incentives, pensions or using compulsory purchase powers, or by limiting the area of land which any one person may own, will fail. FARMINGCOMPANIES The legacy of land law which I have already referred to is still on our Statute Books and does not enable a land owner to lease land with any great confidence or degree of certainty that by doing so he will retain ownership, or the right to repossess fully the property leased. Our tax laws, as presently structured do not encourage the formation of Limited Companies for the ownership, or indeed for the farming of lands. There is a case to be made for farming Companies, provided the tax structures are altered and provided that farming is approached from tax purposes by the Revenue Commissioners as a business and is treated in the same fashion as any ordinary business enterprise.

PARTNERSHIPS We are therefore left with partnership, which while it may seem to be Hobson's Choice in the circumstances, has nonetheless many attributes which can provide a reasonable solution to the many problems mentioned. A partnership arrangement can be in many varied forms to suit the circumstances of the particular case, it can be for a short trial period, it can be extended, should it fail, or if difficulties should arise by virtue of the incompatability of the partners it can be terminated on terms which have already been mutually agreed. It can be between two or more parties and there is a whole wide range of variations to suit all circumstances. There are countless people in all walks of life who carry on various types of business enterprise in partnership with a very full and rewarding involvement and with a measure of success to the benefit of all of the parties involved. There is no reason to my mind why the farming community should not be equally successful, especially the younger landless farmer, who is as astute and able a businessman as most. If a parent and son or daughter operate a farm on a partnership basis, the land owner or parent contributing the land, but the ownership of which he retains, and he also contributing his expertise and such work as he may be capable of, depending on age and the younger person contributing his ability and eagerness to work, both sharing the profits of a profitable enterprise; must lead to a happier and a more contented farming family than now often exists, particularly where a son is merely working at home in receipt of a weekly allowance with no say or standing. As between local farmers two or even more who have small holdings, the advantages are obvious. The batchelor farmer, or the farmer who through age, illness or who is otherwise unable to utilize his lands fully could, by way of partnership with a younger man achieve satisfaction and a greater income through the full utilization of his property. The consequent sharing of expense and farm implements will be advantageous. The land owning farmer also has the assurance that his ownership of the land does not become involved in any way and after a trial period of operation, a decision can be arrived at as to whethere the junior partner in the arrangement should have options or arrangements, permitting him in due course to purchase the ownership from his co-partner. I am glad to say that there has been great co-operation between the I.F.A., the A.C.C. and the Society over the past year and this matter has been under active consideration. Recently Macra na Feirme have indicated to the Society that they would welcome a meeting to set up a Committee to consider in particular partnership arrangements in farming and a meeting will take place shortly. From the practical steps which are in mind, each of us in our own way, can encourage farmers where necessary, in the settlement of their affairs to consider the partnership idea and we can encourage them to do so and in that respect we should be in a position to provide suit- able forms of partnership agreements when required and to advise fully in relation to all aspects of these matters. The idea of farming in partnership is new to the farming community, who heretofore have operated as very independent indivualistic persons, each paddling his canoe to the best of his or her ability. It will therefore take time before the confidence necessary to engage in partnership arrangements grows and in that respect, perhaps a beginning could be made with the family farm. 87