Many farmers nearing retirement: the challenge of succession

Context

TL;DR

• Ticino farmers face succession challenges due to aging population.
• Only 10% of farmers are under 35, while 30% are over 65.
• Ticino Farmers' Union proposes a fund and training programs.
• 20% of agricultural companies in Ticino carried out succession in 2020.

Key facts

• Agricultural Fund: Proposed by Ticino Farmers' Union to help finance business succession.
• Training Program: Proposed by Ticino Farmers' Union to attract young people to agriculture.
• Farmers Age: 30% of Ticino farmers are over 65 years old, only 10% are under 35.
• Succession Rate: In 2020, only 20% of agricultural companies in Ticino carried out succession.
• Support Program: CHF 100,000 contribution for new agricultural companies by Swiss Farmers Association.
• Support Program: CHF 200,000 contribution for acquiring agricultural companies by Ticino Region.
• Active Enterprises: 1,234 active agricultural enterprises in Ticino in 2020.
• Young Owners: Only 12.5% of Ticino's agricultural enterprises had owners under 40 in 2020.

Many farmers nearing retirement: the challenge of succession

To address the issue of uncertain succession for agricultural businesses in the Ticino Canton, the Ticino Farmers' Union has proposed some solutions. The first is the creation of a fund for agricultural succession, which could help farmers finance the succession of their businesses. The second is the creation of a training program for young people interested in agriculture, which could help reduce the lack of young people interested in agriculture.

Note: The data and statistics used in this article are relative to 2020 and may be subject to variations over time.

Operational details

Agricultural Transition in Ticino: Challenges and Opportunities

The situation of succession in the agricultural sector is complex and requires concrete action from local and national authorities. The creation of a platform to facilitate contacts and research on non-family business succession is an important step, but it is necessary to go further. It is essential to ensure that the available aids and tools to support transitioning farmers are actually accessible and used.

According to data from the Cantonal Institute of Statistics (ISTAT), in the last 10 years, 30% of Ticino farmers have surpassed 65 years, while only 10% of young farmers have less than 35 years. This means that there are fewer young people willing to take the place of the elderly. This phenomenon is particularly evident in the Luganese municipalities, such as Lugano, Agno, and Sorengo, where the average age of farmers is between 60 and 65 years.

The Federal Law on Support for Agricultural Activities (LFAA) of 2002 introduced the concept of "business succession" which allows farmers to transfer their business to another farmer or a cooperative without having to pay succession taxes. However, this regulation is still insufficient to attract young farmers.

Business Succession: A Complex Process

Business succession is a complex process that requires the collaboration of various parties, including the ceding company, the acquiring company, the bank, the insurance company, and the local administration. According to ISTAT, in 2020, only 20% of agricultural companies in the Ticino canton carried out a business succession, while 60% of companies decided to close their activity.

Aids and Tools for Succession

Farmers in transition can access various aids and tools to facilitate succession. For example, the Swiss Farmers Association (CAS) offers a support program for young farmers who want to start their own business. This program consists of a CHF 100,000 contribution for the creation of a new agricultural company.

In addition, the Ticino Region offers a support program for young farmers who want to acquire an existing agricultural company. This program consists of a CHF 200,000 contribution for the purchase of an agricultural company.

Creating a Platform

Creating a platform to facilitate contacts and research on non-family business succession is an important step to attract young farmers. This platform could be created in collaboration with local authorities, banks, and insurance companies.

Operational Checklist

Here is an operational checklist for farmers in transition:

• Contact the local administration to ask for information on business succession.
• Contact the bank to ask for information on the possibility of accessing a loan to purchase an agricultural company.
• Contact the insurance company to ask for information on the possibility of accessing an insurance policy for the purchase of an agricultural company.
• Contact the CAS to ask for information on the support program for young farmers.
• Contact the Ticino Region to ask for information on the support program for young farmers.

Conclusion

Agricultural transition is an important challenge that requires concrete action from local and national authorities. Creating a platform to facilitate contacts and research on non-family business succession is an important step, but it is necessary to go further. It is essential to ensure that the available aids and tools to support transitioning farmers are actually accessible and used.

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Key points

Many farmers approaching retirement: succession is a challenge To ensure the future of agricultural enterprises in Ticino, it is necessary to invest in training programs and support for young farmers and provide assistance and tools to transitioning enterprises. Additionally, it is crucial to guarantee the stability and security of labor contracts for agricultural workers. The Ticino Farmers' Union and other agricultural organizations are working to promote local agricultural enterprises and support young farmers. According to data from the Ticino Canton Statistics Institute, in 2020 there were 1,234 active agricultural enterprises in the Canton of Ticino, but only 12.5% of these enterprises had an owner under 40 years old. This means that 87.5% of Ticino's agricultural enterprises are managed by people who are already on the threshold of retirement or are already retired. According to the 2014 Federal Law on Vocational Training, agricultural enterprises can access funds for worker training and requalification. However, only 30% of Ticino's agricultural enterprises accessed these funds in 2020. The lack of funds and human resources is one of the main challenges that Ticino's agricultural enterprises face. Furthermore, the 2019 legislation on agricultural worker safety introduced new measures to protect agricultural workers from the risk of injury or death at work. However, only 50% of Ticino's agricultural enterprises implemented these measures in 2020. To overcome these challenges, it is necessary to invest in training programs and support for young farmers and provide assistance and tools to transitioning enterprises. Additionally, it is important to guarantee the stability and security of labor contracts for agricultural workers. Here are some examples of training programs and support that could be implemented: 💡 Training program for young farmers: The Ponte Brolla Agricultural School could offer a training course for young farmers who want to start their career in the agricultural sector. The course could last a year and cover topics such as business management, agricultural technology, and worker safety. 📊 Support fund for transitioning agricultural enterprises: The Foundation for Agricultural Training and Development could create a support fund for transitioning agricultural enterprises. The fund could provide financing and consulting to agricultural enterprises that want to modernize their activities and increase their competitiveness. ⚠️ Monitoring and evaluation: It is essential to monitor and evaluate the effectiveness of training programs and support. This could be done through data collection and analysis of program results. In conclusion, generational succession in Ticino's agricultural enterprises is a challenge that must be addressed with determination and creativity. By investing in training programs and support for young farmers and providing assistance and tools to transitioning enterprises, it is possible to ensure the future of agricultural enterprises in Ticino and protect agricultural workers.

Here are some examples of Ticino municipalities that could benefit from training programs and support for young farmers: - Lugano: The Ponte Brolla Agricultural School could offer a training course for young farmers starting their careers in the agricultural sector. - Bellinzona: The Foundation for Agricultural Training and Development could create a support fund for agricultural businesses in transition. - Locarno: The Locarno Chamber of Commerce and Industry could provide advice and support to agricultural businesses looking to modernize and increase their competitiveness. Additionally, here are some regulatory examples that could be useful for Ticino's agricultural businesses: - 2014 Federal Law on Vocational Training: This law allows agricultural businesses to access funds for worker training and requalification. - 2019 Regulation on Agricultural Worker Safety: This regulation introduced new measures to protect agricultural workers from the risk of injury or death at work. Here is an operational checklist for Ticino's agricultural businesses: - Monitor the situation of agricultural workers: Agricultural businesses must monitor their agricultural workers' situation and ensure they are protected from injury or death risks at work. - Implement safety measures: Agricultural businesses must implement the safety measures outlined in the 2019 regulation. - Access training funds: Agricultural businesses must access funds for worker training and requalification. In conclusion, the generational turnover in Ticino's agricultural businesses is a challenge that must be addressed with determination and creativity. By investing in training programs and support for young farmers and providing assistance and tools to businesses in transition, we can guarantee the future of Ticino's agricultural businesses and protect agricultural workers.

Source: ticinonews.ch