To increase the diversity of our food products and to create more work opportunities, we embrace share farming and connects small-scale farms. A share farming s a coming together of two parties in a mutually beneficial agreement to farm a certain area of land while remaining as two separate businesses.
An owner and an operator devise the arrangement around a ratio, which establishes how much money each party is responsible for putting in and is entitled to take out. The ratio is worked out by assessing the annual value of all of the assets and expertise each person is bringing to the table.
It can grow incrementally over the course of several years as operators reinvest their profits, growing their share of the business. Distinct from contract farming, share arrangements make no guaranteed payments, regardless of business performance. This means both parties can thrive in the good times and share loss in poorer times.
Benefits to the owner:
– Farm can be worked without parting with possession
– No shared liability between the two parties
– Can create larger land areas, increasing buying and selling power
– In good years, profits increase
– Owner retains a regular input in managerial decisions
Benefits to the farmer/operator
– Opportunity for new entrants (more farmers) to enter the agriculture industry
– Less upfront capital needed than for tenancy or purchase
– Can build up share in business by reinvesting profits
– Can create economies of scale that reduce fixed costs
– New entrants can learn from owner’s experience
– Operate a separate business without any cross-liability
Farm sharing is meant to optimize land that is lying fallow, unproductive, or underutilized. By sharing your farm, you will be directly and indirectly creating employment and also generating more income for yourself by selling food from your space. If this is good for you, let us farm together. Click here to register your farm today.