Inherited farm

Flat to the square right.

The family farm has been divided and signed over to myself and one of my siblings. Neither of us are dependent on the farm as we both live and work off farm. My parents are continuing to work the farm but they have health issues and are winding down. It’s a difficult subject to discuss with them as many of you know. What should I be doing to plan ahead? What normally happens with the herd number in this case? What happens with the Single farm payment when a farm is divided? What else should I be sorting out at this stage to make the handover more smoothly. TIA

blackbox

Just to clarify, has it been divided into two farms or are you running one farm as a partnership?

Flat to the square right.

Thanks blackbox. I should have said two separate farms going forward.

_Brian

One farm will inherit the herd number and the other will need to apply for a new number, no big deal really.

I expect the payments be split based on acreage but it would need to be fleshed out to be sure.

Siamsa Sessions

Might be no harm to have an initial chat with whatever accountant does the farm tax return. There are various issues around capital gains, inheritance tax, etc.

When all is sorted in principle, you'll need to involve a solicitor too to update records of land ownership at the Land Registry.

It's a pain dealing with the admin of it all, but having an external person like an accountant/solicitor in the room can help with awkward discussions between you and your parents. That is, you can blame them!

Flat to the square right.

Thanks for the replies. The capital gains, inheritance tax and land registry has all been sorted. I was mainly wondering about herd numbers and payments and anything else that needs sorting as I genuinely have limited knowledge here. I wouldn’t even know who to contact for a herd number. I just want to have my side prepared for whenever my parents decide to finish up. Any other advice would be appreciated.

Siamsa Sessions

What type of farm is it? Sucklers, sheep, dry stock, etc. I'm assuming it's not dairy or tillage from what you describe, and you're not going to leave the other job to become a full-time farmer.

If you could share some basic info (nothing too personal) it might help people point see what else might be need to be done.

You can see how to get a herd number here: https://www.gov.ie/en/service/f90f21-application-for-a-flockherd-number/

Good loser

Would advise you to contact Teagasc or whoever does the SFP applications for your parents, also to have a chat with your parents' accountant.

Sfp is changing to BISS next year; applications are put in around April.

It would be a good idea to have a read of the Farmers Journal every week too to get advice on schemes, deadlines, pending changes etc.

Do you intend leasing out your portion?

Dinzee Conlee

Is it a farm plus out farm, or the one farmyard?

Does anyone know can you have two herd numbers owned by two different people in the one yard? I thought this wasn’t allowed?

Flat to the square right.

Thanks again for the replies. Ya, no problem sharing some info. It used to be sheep and dairy but just sheep now with one farm yard. I don’t plan to go full time farming but not interested in leasing it out either. Hopefully just be able to keep my part going as is without it costing me too much. I’m not expecting much profits so long as I don’t lose money. I’m pretty sure that you can’t have two herd numbers out of the one yard.

ABlur

The Department of Agriculture have an inheritance unit who will help with transfers for scheme payments etc

69749_96c44db3a1764820a79b485a647e7ef2.pdf

wrangler

https://www.boards.ie/discussion/comment/119799059#Comment_119799059

Inheritance transfer can be problematic as can involve probate

But ordinary entitlement transfer where both parties are alive is no problem

Dickie10

would there be any interest in keeping the farm one unit and doing a company for ax peurposes? or leasing your siblings portion of them to keep it more viable. unless its at least a 200 acre farm then i wouldnt slpit it but keep it as 200 plus acre farm to be viable.

Flat to the square right.

I wouldn’t understand enough about keeping the farm one unit and doing a company for tax purposes but I will try to enquire about it. I’m not interested in leasing the other half and it is less than 200acres. I would have to look at the maps but I think it about 100 acres (mostly mountain). I will try to contact the department and also teagasc and see if I learn anything. If I do, I will share it here.

Siamsa Sessions

https://www.boards.ie/discussion/comment/119801720#Comment_119801720

It wouldn’t have to be a company structure. You can register a partnership with the Dept and fill a tax return for the farm based on same.

There’s lots of options and possibilities. Unfortunately 😀