Irish landowners letting land choose, mostly, between the traditional eleven-month conacre letting and a long-term lease of five years or more. The choice used to be cultural — conacre was simply what was done. Policy has changed that: tax and relief structures now reward the long lease, and the choice has become a genuine planning decision.
The Legal Difference
Conacre is a licence to take a crop or grazing — the owner retains possession in law, the arrangement ends each season, and no tenancy arises. A lease grants exclusive possession for a term, creating a landlord-tenant relationship with the rights and obligations that follow. Everything else flows from this: security, flexibility, tax treatment and how the arrangement reads for relief purposes.
| Aspect | Conacre | Long-Term Lease |
|---|---|---|
| Nature | Seasonal licence, no tenancy | Tenancy for a term of years |
| Flexibility | Land back every year | Committed for the term |
| Income tax | Taxable rental income | Exemption may apply up to term-based limits |
| Relief conditions on later transfer | Repeated informal conacre can sit badly | Formal lease to an active farmer can sit well |
| Taker’s incentive to invest | Low — no security | Higher — soil, fencing, reseeding pay back |
How to Choose
Ask what the land is doing in the family’s ten-year plan. If a transfer is coming, the letting structure in the years beforehand can support or undermine the reliefs the family intends to claim — recent changes extending conditions to the transferor make formalised leases more valuable than ever (your accountant confirms the current position). If the owner may want the land back — for a successor starting out, a sale or a renewable energy project — conacre’s flexibility has real value. Either way, put it in writing: see our leasing and conacre service and the leasing exemption explained.
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About the Author
Richard O’Shea TEP, Solicitor practises with Mary Molloy Solicitors (established 1981), advising farming families across Ireland on farm transfers, succession planning, wills, probate and agricultural property matters. As a STEP-qualified Trust and Estate Practitioner, Richard specialises in the legal structuring of intergenerational farm transfers, working alongside each family’s accountant and tax advisor. Contact Richard on 01 5827148 or richardoshea@marymolloysolicitors.com.
This article is for general information only and does not constitute legal advice. Every farm and family situation is different, and you should obtain advice on your own circumstances before acting. In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.