The suspension of the installation aid and early retirement schemes will curtail the development of a commercial farming sector with the necessary scale to generate viable incomes, according to the Agricultural Science Association (ASA).

"With opportunities for off-farm employment in decline, the establishment of the maximum number of full-time commercial farms is more important now than at any time during the past decade. The availability of start-up capital through installation aid and access to additional land through the farm retirement scheme are vital in achieving this objective," said ASA President, Elaine Farrell.

"Almost 90% of young farmers now have a third-level qualification. They must be given the opportunity to build businesses of sufficient scale that will deliver incomes comparable to those available to others with similar qualifications in order to underpin an innovative, internationally competitive food industry."

"Installation aid and the retirement scheme have made important contributions to the increase in average farm size and to the emergence of a cohort of full-time commercial farmers during the past decade. The suspension of the schemes, with a saving of just €8 million over the next year, will damage consolidation and inhibit the entry of well-educated young people into farming," she said.

Elaine Farrell said the suspension will also have significant implications for professionals involved in servicing the schemes, leading to job losses. Cutbacks in research, advice and other support services will put additional pressure on employment for agricultural graduates and will significantly curtail employment opportunities for young graduates.

"This is taking place at a time of great opportunity and serious technological challenges for the agri-food sector and when interest in careers in agriculture and food science has increased. This was exemplified in the dramatic jump in the points requirement for agriculture and food science courses in UCD last August," said Elaine Farrell.