Farm Table says:
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.