Share farming in the sheep and beef industry

Lincoln University - Kellogg/Primary Industry Council Rural Leadership Program

Type: PDF
Knowledge level: Introductory

Farm Table says:

Worth accessing for the worked example that illustrates how a share farming agreement may pan out for a sheep/cattle property.

This paper was prepared by Tim Mackintosh for the 2003 Kellogg/Primary Industry Council Rural Leadership Program. It focused on the potential for the sheep and beef industry in New Zealand to adopt share farming as a model for young farmers to grow equity and landowners to look at alternative structures.

It is estimated that one third of all dairy farms in New Zealand employ a share milker where as it is thought that less than 2% of sheep and beef properties involve share farming to any degree.

Mackintosh speaks to farmers about:

  • Reasons for going share farming
  • Reasons for employing a share farmer
  • What is deemed necessary in order for a share farming agreement to succeed
  • Common types of share farming agreements
  • Key clauses

An example is worked through of a 600ha property that runs nearly 4,000 sheep and 400 bulls. It works through the income split, expenditure, gross surplus and return on capital between share farmer and land owner.

2004 - Australia - Lincoln University - Kellogg/Primary Industry Council Rural Leadership Program
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