Farm Table says:
This UK based article answers the following farmer’s question:
I run an 182ha arable and sheep farm with 300 ewes and am a sole trader with no successor. I am coming up to retirement and looking at ways to continue farming while taking a step back. I would like to help get someone started in farming through a share farming or contract farming agreement. What should I be considering?
Share farming and Contract farming are then described.
- two parties share input costs and revenue
- two separate businesses are run
- no guaranteed payments
- no joint accounts
- establishing an agreement can be complex
- joint venture
- contractor receives a fee for work performed
- owner pays all inputs and receives all income
- any surplus margin in accordance with agreement