Farm Apprenticeship Board

Contact: Mr Liam Myles

Introduction

The Farm Apprenticeship Board has been involved in providing practical Farm Management Training for those entering farming/the agri-industry since 1964.

The original aim of the Farm Apprenticeship Scheme was to train young people to return to family farms. Over time the career path of FAB graduates has changed. Since the early to mid 70’s approximately one-third (33%) of FAB graduates went directly into farming (through inheritance) while two thirds (66%) took up jobs in farming as operators, herdsmen, assistant managers and farm managers. Approximately 70 young people complete the FAB Training Programme each year.

The graduates of the FAB Training Programme are highly thought of in farming and the agri–industry and are seen as the most highly trained and motivated group of young people entering the industry.

Background

The low level of incomes in Irish Farming is well known. Teagasc national farm survey data for 1998 shows the average farm income at £ 11,000 – well below average industrial wages. The reasons for this are many and complex. Irish agriculture had been hampered by the twin problems of farm structure (size) and the age profile of farmers. This can be illustrated by an examination of recent CSO data on agricultural labour input 1998 as outlined below;

Farm Size/Structure

The average farm size in Ireland has changed little and is now at 29.5Ha (73 acres). Almost 47% of all farms are less than 20Ha (49 acres). Only 14% of farms are greater than 50Ha (124 acres).

Age Profile of Farmers

Less than 12% of Irish farmers are under 35 years of age. Less than 31% are 44 years or less and the trend is downwards. At the other end of the scale the number of farmers 65 years and older has remained at over 22% for the last number of years.

Much attention has been given to these two problems over the years and despite promises, land policies, documents and pronouncements and schemes such as the farmer retirement scheme there has been no significant or real change in the structure and age profile of Irish farmers.

The Human Factor

From a national point of view a real hindrance on the development of farming (on which the whole industry is based) is the low level of education and training among farmers.

A recent unpublished ERSI report for Teagasc has clearly illustrated this problem.

Since the early – mid 1970’s steps have been taken to remedy this situation. Training programmes are equipped to prepare young people for modern technological farming.

Unfortunately the (CSO) data above would indicate that such young trained people have not (yet!) been absorbed into the management and training of Irish farms. This has to happen if Irish Farming and the agri-industry is to become efficient, competitive and viable.

Access to land and management is the key.

The Farm Retirement Scheme has had some impact. The fact remains that not enough young trained people are been given the opportunity to manage Irish Farms and apply their skills and knowledge. This has led to frustration and disenchantment and regrettably, many young people do not remain in the industry. This has been exacerbated by the job / career opportunities elsewhere due to the “Tiger Economy“ factor.

A Future in Farming

Despite the overall picture in farming as indicated by average farm incomes the Farm Apprenticeship Board believes there is a future in farming for those who avail of Education and Training. A close examination of the Teagasc National Farm Survey data for 1998 shows there is huge variation between farm enterprises and within enterprises. The following table shows the income variation between enterprises (farming systems).

Farm Incomes – Teagasc National Farm Survey 1998

Obviously the biggest income problems exist in the drystock sector which the vast majority of farmers are involved in. However these are average figures and mask the level of incomes achieved by the better farmers.

The results achieved on beef farms involved in the Teagasc “Cash in on grass” scheme in 1998 (see table below) illustrate the differences and variations within the enterprise and thus the potential for improved incomes:-

The difference between the top and bottom group is £100 / acre. This is a doubling of income for a 50 acre farm – due to a relatively small improvement in technical farming. Costs of production varied from 21.5p per kilogram of liveweight to 111.5p – 90p/kg difference!

Similar evidence of performance related results are available in milk production where costs of production vary from less than 40p / gallon to 80/90p. This shows the opportunity to achieve much better incomes from farming through better farming and farm management standards.

This will only be obtained by giving greater access to younger highly trained farmers / managers.

Greater access to the use of land and production rights (milk quota, area aid – arable and beef) is urgently needed by young entrants. This is the key to future viability in farming.

Labour Crisis in Farming

The Farm Apprenticeship Board has drawn attention in the past to this growing problem. There is a very strong vibrant sector of commercial farmers in Ireland with a corresponding strong demand for skilled experienced full-time staff. There is also a strong demand for part-time and seasonal staff in farming.

Both these demands are not being met and have not been met for some time. This is not a new phenomenon but it only has been accepted as a problem in recent years. Again the impact of jobs / career opportunities elsewhere in our economy is significant.

The demand for graduates of the FAB Training Programmes outstrips the number of graduates available by 3-4 to 1. The FAB Scheme is the main training programme for job seekers in the Industry (Teagasc Programmes are mainly targeted at farm inheritors).

The shortage of skilled trained labour is affecting and will greatly hinder the development of the commercial farming sector - a sector which contributes the greatest proportion of farm output.

The recent downturn in numbers of people enrolling in Agricultural Education and Training Programmes will accentuate this problem.

There has been a dramatic downturn in numbers applying for / entering Agricultural College courses. The numbers entering FAB Training Programmes dropped almost 50% from 1996 to 1998 and this trend is continuing.

The reasons for the downturn in those seeking farming careers are many and varied.

The negative image of the farming industry coupled with the lack of serious promotion of agricultural careers in secondary schools are serious issues to be tackled in this region.

In tandem with the low intake is the failure to retain good staff in the industry. This is a function of relatively poor employment conditions (in the past at least), poor (or lack of) labour management, lack of a career structure etc.

The lack of real opportunities for young people to establish themselves in farming is also a key influencing factor – particularly for FAB graduates who have no land to inherit.

The corollary of this situation is that if entry to farming was more amenable then this would provide a tremendous incentive for young people to choose farming as a career – particularly landless young people such as the FAB graduates. In summary a “career ladder” is needed.

Part-Time Farming Factor

Part time farming is a reality given the structure and enterprises on Irish farms. The vast majority of entrants will inherit small farms. The strong ‘bond’ to land will ensure part time farming will continue. With training and education these farms can be developed to produce significant agricultural output. Run efficiently a small farm can provide reasonable income. The owner can then supplement income with off farm employment.

Teagasc has correctly focused on the need to provide such people with the skills and expertise to secure employment or set up rural business ventures to compliment the farming activities.

The FAB believes that the qualified farm manager is well equipped to farm well and has the skills and experience to provide labour/labour services on a full time or part time basis for other larger commercial farmers in the area.

In other words the off farm employment can be in farming. This should not be ignored and would contribute to solving the labour crisis in farming. The calls for and the need for development of rural economies would benefit greatly from the involvement of young trained enterprising farmers such as those who complete the FAB Training Schemes.

Proposals or Possible Solutions on the Entry of Young People in Farming.

With only 0.4% of land sold on the open market demand will always outstrip supply so purchasing (by a new entrant) is prohibitive (unless he/she can “marry it” or win the lotto!)

The proposals / suggestions made below refer to those who have completed recognised training programs (particularly FAB) and those under the age of 35 years.

LEASING

While land leasing (especially long term) is relatively underdeveloped in Ireland it does provide access to farming. In practice, this access is very limited because of the high rentals paid by existing farmers. Young entrants cannot compete on economic grounds. This problem was exacerbated by the enlargement clause in the retirement scheme.

In the case of young trained farmers under the age of 35 long term leasing could be made more accessible by;

1. Improved tax incentives for owners to lease to this group.
2. Allow unused capital allowances to be allocated to the young farmer.
3. Remove existing clawbacks such as in dairy leases for this group. Such clawbacks act a disincentive to leasing and should be removed where the farm is leased by a young trained farmer.

OTHER OPTIONS

Other joint ventures offer potential in Ireland. The problems of entry to farming and labour are now so acute that innovative schemes should be put in place to solve them for the future.
Such schemes include;

SHARE FARMING – highly successful in New Zealand, Australia etc.

Most common on dairy farms where the owner provides land and buildings and the “milker” provides cows, mobile machinery and all the labour. Usually a 50:50 split on income (can vary depending on ownership of herd).

Advantages:
Farm run efficiently and profitable.

1. Owner deemed to be to farming – more tax efficient than leasing.
2. Real stepping stone to ownership for milker – capital formation.
3. Milker working for him/herself.

Farm Partnerships

A pooling of the resources of two (or more) farmers with a division of income based on the relative contribution of the partners. Ideal for small farmers who want access to better farming and management standards and where the other partner has a high standard of skill and performance. Partnerships have recently received favourable reaction at official level. However there are many major obstacles to overcome mainly with regard to taxation (cessation and commencement may apply) and animal health (ERAD) regulations. Such problems will have to be overcome if joint ventures are to succeed. This should be possible with an enlightened and co-operative approach.

“PARTNERSHIP” – Owner (Employer and Manager (Employee).

Those who complete the FAB Training Schemes are the most highly skilled and trained young people entering farming. Over two thirds of these obtain jobs on larger commercial farms. However, it is difficult (impossible ?) for these elite group to set up in farming for themselves. In an effort to create a career ladder/path a farming “career”.

For this important group and develop a “career path/ladder” for them, the Farm Apprenticeship Board is proposing a partnership between, the employed manager/ assistant manager and the farm owner/employer.

Proposal: To allow an employed FAB graduate produce quota for him/herself on the farm on which he/she is employed.

THIS ARRANGEMENT HAS MOST POTENTIAL IN THE DAIRY SECTOR BECAUSE OF THE HIGHER PROFIT LEVELS THERE.

The Board is proposing that the diary herd manager be allowed produce milk quota of his/her own while employed to manage the owners dairy herd. A minimum quota allocation of 20,000 gallons is proposed. This quota could be allocated from the increased allocation of 32 m. gallons to Ireland under the recent Agenda 2000/Berlin Agreement. Therefore the allocation would not impinge on the quota rights of existing producers.

This quota could remain with the Manager/Milker if he/she moved to a new job or revert back into a central pool i.e. not attached to the employer’s farm.

ADVANTAGES:

This arrangement would have several advantages;

1. It would allow a Farmer with a relatively small quota (e.g. 30-60,000 gallons) employ a FAB Dairy Manager / Herdsman who otherwise could not afford to do so. This would have great significance in cases where there is illness, old age or death in the family.
2. It would act as a major incentive for Farm Managers to enter and stay in the career thus alleviating in some way, the problem of labour shortage.
3. It would meet an urgent need among landless Farm Managers to “get into farming” for themselves. This arrangement would provide an opportunity to build up capital and provide a first step on the farming ladder.
4. The employment of trained experienced staff would result in improved standards of farming and income for the farm family. The variation in costs of milk production per gallon (40-80p!) shows the huge potential for this.
5. The improved management standards on farms would lead to better efficiencies in the Industry as a whole (disease and quality levels, collection costs, etc.).
6. In many cases the extra (cows) milk produced would be from existing facilities which because of quota, may be “surplus” to current requirements.

An innovative scheme such as this is required urgently to “open the door” into farming for landless graduates of the FAB Training Schemes.

ACCESS TO DEVELOPMENT LANDS

Young trained farmers should be given sole/priority access to lease of development lands held by local Government Agencies (County Councils, Town/City boroughs, IDA, etc.).

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