6N20462 Farm Management and Business Planning Assignment Brief 2026

6N20462 Assignment Brief

Learning Outcomes

Learners will be able to:

1. Explain liability and risk relating to agriculture activity
2. Assess the effect of EU and National legislation on the running of a given farm situation
3. Outline supports available to farmers from government, state agencies and other nongovernmental organisations
4. Appraise the taxation system in relation to agriculture
5. Assess financial services and credit requirements available to farmers
6. Appraise stakeholders and external supports associated with the agriculture business
7. Assess efficiency, output and business performance of a given farm situation
8. Develop and evaluate realistic options to improve a given agriculture situation, taking account of EU and National environmental legislation
9. Predict benefits and implications of  implementing a change to an agriculture situation including using cost benefit analysis and calculating loan repayments
10. Cost a realistic development for a given agricultural business situation
11. Investigate succession, inheritance, ownership, title and business arrangements pertinent to agriculture
12. Calculate costs of transferring ownership of farm property.
13. Investigate an alternative enterprise appropriate to the land based sector
14. Appraise health, safety and welfare management for a given agricultural business situation

Section 1 Preparation (15 marks)

Communication

a. How important is good communication within the family in developing a Succession and Inheritance Plan?  How would you go about ensuring there is good communication on succession within your family?

b. Why is it important to seek professional advice and what advice should be sought?

c. What training and work experience would benefit any potential successor for a career in farming?

Section 1 Mark out of 15

Section 2 Transfer of Management (10 marks)

a. Why is it considered good practice to gradually transfer responsibility for running the farm before finalising any land transfer?

b. Describe ways in which management responsibility could be transferred to a potential successor. Explain why

Section 2 Mark out of 10

Section 3 Farm Transfer (30 marks)

All assets including the farm must be passed on to the next generation at some point or sold.  Parents or the owners must consider many issues before finalising a succession plan. All family members need to be included in developing a Succession and Inheritance Plan.  This can be a new situation for most people so last minute decisions are to be avoided as there might be a lack of information available (for example tax or legal implications of decisions).

a. When is the best time to transfer the farm in your opinion? What needs to be considered?

b. Why is it important to make a Will?

c. Should the farm be transferred in one block, if so why? Is there any merit in splitting it up in some way?

d. If applicable, how will other family members be catered for if the farm is transferred to just one successor?  Does any family member have special needs and how will they be catered for?

e. When the farm is transferred what involvement will the transferors continue to have in the farm?

Farmhouse

f. Will the farmhouse be transferred with the farm and at the same time? Will the transferor (s) continue to live in the farmhouse or will there be other arrangements.

Section 3 Mark out of 30

Section 4 Financial Considerations (25 marks)

Before any changes are made to the Management or Ownership of the farm it is important to think through the financial implications for everyone involved. There will be a cost associated with the transfer itself and there will be changes in income.

Household Income

From an income perspective the family is probably moving from a position of one household to a position of two separate households.

Household 1 (Transferor): Estimated Household Income after transfer

Comment on the financial position of Household 1 after the transfer has taken place.  If income is considered to be insufficient, what can be done to improve the situation e.g. look at pensions.  Is there a need to reassess settlements etc. as part of the transfer?

Household 2 (Transferee)

Estimated Household Income after transfer

Comment on the financial position of Household 2 after the transfer has taken place.  If income is insufficient, what can be done to improve the situation e.g. look at off-farm employment, how to boost farm income.  Is there a need to reassess any financial commitments made as part of the transfer plan?

Estimated Family Living Expenses

Number of people in Household 1     _______

Number of people in Household 2     _______

Where expenses are normally incurred per week convert to per year

Section 4 Mark out of 25

Section 5   Taxation and Legal Fees (20 marks)

Stamp Duty

a. What are the requirements for Young Trained Farmer Stamp Duty Relief?

b. Calculate the approximate stamp duty to be paid on the transfer of this farm.  Indicate if the successor qualifies for young, trained farmer Stamp Duty Relief. Show calculation.

Capital Gains Tax

c. Is the farm transfer likely to be subjected to CGT?  If not, why not? What are the main ways to avoid CGT arising?

Capital Acquisitions Tax

d. In your situation, what current CAT threshold is applicable?

Relationship to transferor:     ___________________

CAT threshold:                        ___________________

If the farm is valued at more than the relevant Threshold, Agricultural Relief may apply.  List the main conditions for availing of Agricultural Relief

Legal Fees

e. Legal fees are a significant cost in any farm transfer.  What will influence the final fee?

Section 5 Mark out of 20