The early retirement scheme for farmers provides a significant incentive for older farmers to retire and pass on their lands to younger trained farmers who enlarge their holdings. This improves the structure of agriculture by increasing the number of young farmers and creating more viable farm units.
These farming transferees must agree to farm the enlarged holding for at least five years or for as long as the pension is paid to the retired farmer.
The scheme is focused on full time farmers but not exclusively so. Under the Council Regulation (EEC) No. 2079/92 on which the scheme is based farming means spending at least 50 per cent of time and earning at least 50 per cent of income from farming. If forestry, on-farm tourism and crafts are also undertaken the income from farming must be at least 25 per cent of the total.