Joint Ventures

Joint Ventures

Contract farming arrangementsResponding to the recent changes in the Common Agricultural Policy and price volatility, many farmers are reviewing the structure of their farming operations. Whether you are looking to expand your current operation or wish to find an alternative means of farming your own holding, we are well placed to advise on the full range of farming arrangements.

Contract Farming

Contract farming arrangements provide the formal platform for one farmer / contractor to undertake all the labour and machinery work on another farmers holding. Meanwhile, it ensures the landowner / occupier maintains working farmer status and continues to be involved in buying and selling, while having less day to day management responsibilities. Both farmer and contractor are paid a fixed fee with an uplift based on profit generated. For the contractor this provides the ideal opportunity to expand with little or no capital outlay. For the farmer it provides a way of reducing the day to day work load and capital tied up in machinery and labour.

Machinery Joint Ventures

Generally labour and machinery is shared and a separate business established in a bid to operate more efficiently and perhaps provide a vehicle for future expansion into other contracting work. For all joint ventures to work they must be for the right reasons and between the right people. We have a wealth of experience advising on all such arrangements, from facilitating initial discussion through to preparing and managing formal agreements and then ensuring the objectives of both parties are met.