Farm Table says:
This factsheet outlines an alternative approach to the family farm business model (land is owned and operated by a family). It outlines models that involve varying degrees of separation of the ownership of the farm asset and farm operations.
The models introduced include ownership, leasing, share farming, contracting and joint ventures. These models are applied to the ownership of different farm resources, including land, irrigation water, livestock, labour and machinery and working capital.
Implementing an alternative model during succession planning may provide a different way of structuring the business that is suitable to all parties.
By applying a corporate farming model to a family farm situation and choosing the right path for your business, many benefits are within reach, including enhanced profitability and effective risk management.