IFAC – 50 years on

Ifac – Irish Farm Accounts Co-operative – was founded in 1975 with a specific purpose, explains John: “We were founded in 1975 by seven forward-thinking people who got together with a view to developing a specialist accounting firm for farmers, and that’s exactly what they did. We started out with a handful of people, very little funding, and unsure about whether the market would actually adopt an accounting firm focused primarily on agriculture and farming,” says John.

In the intervening decades, Ifac has evolved into a leading accounting, tax, and business advisory firm encompassing farming, food, agri-business sectors, and the SME space. And, earlier this year, it unveiled ambitious plans for further expansion including the creation of 400 new jobs over the next three years.

“Today, we have 30 locations around the country, with 600 people, servicing 30,000 clients, and we continue to grow,” says John. “Every year we’re achieving significant growth statistics. We grew by about 21 per cent last year and we’re in double-digit growth again this year. We provide a broad set of services to farmers and clients in the agri-food industry, generally, and in family businesses as well. It’s a high integrity model built around really good people delivering independent advice and operating in a highly effective manner with our clients. People are joining us every week which reflects well on the services we offer.”

Best business practices

John emphasises the importance and value of the services that Ifac offers: “We always prioritise best business practices and what we need to do, for instance, to make sure that our clients are getting maximum tax savings and the best possible return on their money where they’re placing investments with us.”

With commodity prices higher than previous years, John reflects on the state of farming in 2025: “It’s a really good year for farming. Commodity prices are strong across milk and drystock. There are built-in costs over the last couple of years – no question about that – inflation is still present and we’re still seeing increases in costs but those increase in costs are at a slower pace than they were at previously, and that’s definitely contributing to a good year for farming. We’re going to see significant profits across the dairy and beef sectors and that will come with its own challenges in terms of tax management,” says John.

There are many ways to manage those taxes, and that’s where Ifac’s expertise comes into play, he explains. “We are experts in tax management and we’ll certainly be working very closely with our clients to make sure that their tax bills are minimised, even though they’re going to be in a good profit situation. Cattle producers, for the first time in a very long while, are going to be in a good profit position and our aim is to preserve as much of that profit as possible for the benefit of our clients.

“With dairy also doing very well, the other major commodity is grain production and that is heavily challenged by low global grain prices. This year, at least the weather was favourable, with good yields and quality generally, and that has helped the mood in the tillage sector,” John says. But there are challenges down the road for all farming sectors, he adds. “These include big issues around the Common Agricultural Policy and international trade barriers as we have seen, for instance, with the Trump tariffs. EU trade negotiation outcomes are also on our radar but it’s too soon to make definitive statements on the impacts on Irish farmers. Weather will always be a major factor in economic outcomes every year and that’s something we have very little control over. At the moment, however, the economic outlook for Irish farming is favourable.” 

Managing higher prices

John had timely advice for those involved in the cattle sector: “It is a time to be monitoring it closely if you’re a cattle producer at any stage along the production chain. For instance, a lot of people have been taking the opportunity of high prices to let off forward stores, instead of finishing them, and then turning around and wondering should they restock. That brings its own set of challenges, not least the potential tax implications,” says John. He explains: “That’s a very serious circumstance, particularly if you’re not an income averaging system, and where each year is independently assessed on its own merit. You have to be careful about creating bumper profits by disposing of stock in that way. I think if you’re maybe heading towards an exit or a reduction in stock programme anyway, particularly if you are heading towards some sort of a succession piece, it’s very important to look at all of the potential implications involved. Our pre-year-end review allows us to manage tax implications for the year. Post-year-end, there are options including pension investments that can be useful.”

Long-term financial planning

Some farmers are pro-active in their long-term financial planning, others less so. John comments on this: “It’s down to the individual, whether regarding succession planning, land-use options, or long-term investments in their farms. It is often down, too, to the family circumstances. Farm transfer reliefs are important and should be protected. We saw what has happened in the UK. Often, in terms of planning over the longer term, a balance has to be found between long-term income and succession. If there isn’t a successor then the thinking can revolve around monetising the assets in whatever way works best for everyone concerned. That can include leasing, solar, and so on.

“Often the most important factor is the family dynamic. Not all families or individual family members are willing or able to have the necessary conversations. It’s often the things that aren’t discussed that create the biggest problems. It must be understood that these conversations and efforts at agreement often involve very valuable assets. That has implications for everyone involved, whether they will benefit or not in the longer term. It can be challenging to reach amicable solutions.”