Guidelines for Long-term Land Leasing

Teagasc - Agriculture and Food Development Authority

Type: PDF
Knowledge level: Introductory

Farm Table says:

This is a Irish-based booklet. The CGT and income tax sections will not be applicable, however the rest of the booklet provides some insightful introductory information.

This document is intended as an information document for farmers and landowners who are considering long-term land leasing.

This guide opens with the following questions:

Why Landowners (lessors) should consider long-term land leasing?

  • Enhanced income tax relief incentives
  • Looking for a stable long-term lessee.
  • Stable long term income from farm assets
  • Providing an opportunity for lessee to improve fertility and land quality.
  • Qualify for Capital Gains Tax relief on transfer or sale of the farm
  • Successors not yet ready to farm
  • No identified Successor
  • Retiring from farming.

Why active farmers (lessee) should consider Long-term land leasing?

  • Security of tenure
  • Enables longer-term planning of the farm business
  • May provide opportunities for expansion or change of enterprise
  • The land is more productive with investment.
  • Provides the opportunity to invest and improve the land.
  • Farm buildings may come with the land that will reduce capital investment in housing, slurry and silage storage facilities.
  • More cost effective than purchasing land
2018 - Ireland - Teagasc - Agriculture and Food Development Authority
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