Sharefarming

Red Meat Profit Partnership

Type: PDF
Knowledge level: Introductory

Farm Table says:

Super snappy sharefarming snapshot from NZ!

This factsheet defines sharefarming as a system of farming whereby two parties each provide a differing level of asset:labour and derive a different level of return as a result.

The key idea is that each parties contributes something complementary to the agreement. Individual finances remain separate; two businesses operate within one farming operation.

The following benefits of sharefarming are outlined:

For the Landowner:

  • Helps secure and retain high quality labour
  • Increase farm performance
  • Release capital from the farming business
  • Reduce or remove involvement in farm operations and/or management
  • Able to retain some management control depending on the agreement
  • Share the financial benefits of a good season

For the Share Farmer:

  • Pathway for increased investment in farming over time
  • Able to get additional financial reward for high performance
  • Grow management and governance capability
  • Potential mentoring from landowner to accelerate development
  • High return on equity
  • Share the risk of a bad season

A case study, challenges and key steps outline aspects to consider in the sharefarming decision.

New Zealand - Red Meat Profit Partnership
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