Want to step back? Share versus contract farming

Farmer's Weekly

Type: PDF
Knowledge level: Introductory

Farm Table says:

Looking at stepping back but not sure of your options. Have you thought about sharefarming or contracting?

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.

Share farming

  • two parties share input costs and revenue
  • two separate businesses are run
  • no guaranteed payments
  • no joint accounts
  • establishing an agreement can be complex

Contract farming

  • joint venture
  • contractor receives a fee for work performed
  • owner pays all inputs and receives all income
  • any surplus margin in accordance with agreement
2018 - United Kingdom - Farmer's Weekly
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