Written by Charlotte Cunningham
A new generation of Contract Farming Agreements designed to maximise flexibility are likely to emerge in response to changes in government support and the introduction of more environmental measures into the arable rotation. Charlotte Cunningham reports. According to Richard Means, director in the farming department of Strutt & Parker, a well-structured CFA will remain a very good vehicle to manage a farm as both parties can be incentivised, their skills utilised and economies of scale realised. But the impending reduction in BPS payments, alongside the introductions of ELMS, will undoubtedly have an impact on the set up of future agreements because of their impact on crop rotations. “Ultimately, the farmer must still be seen to be taking the risk from growing the crops and the contractor needs to be fairly rewarded for having the retained running costs of labour, machinery and the management skill that they bring to the arrangements,” he says. “Couple this with larger environmental schemes that might come into the rotations, then we will see more flexible arrangements where each cropping option has different rates for both the basic contractor’s charge and farmer’s retention. “While that will make it more complicated to administer, it may well be…
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