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Farm Business
Agricultural Matters
Is the contract farming business model finished without sfp? poll
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<blockquote data-quote="Kiwi Pete" data-source="post: 7403340" data-attributes="member: 63856"><p>It's an interesting one though <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite24" alt="(y)" title="Thumbs Up (y)" loading="lazy" data-shortname="(y)" /></p><p></p><p>I think the real big players are</p><p>1. Land value/cost</p><p>vs</p><p>2. Earnings after expenses</p><p></p><p>SFP loss will be rather inconsequential compared to these two...?</p><p></p><p>NZ used to be full of 50/50 sharefarming opportunities in the dairy sector when an acre was worth as much as a good BW cow - both sides bought about the same to the table and it was mutually beneficial</p><p></p><p>But when land value climbed and cow value didn't, then it reduced that. </p><p>Made more sense for the landowners to buy a herd, and put a manager or contractor on, and keep a bigger slice of the profit (or loss!!) but it often resulted in much lower herd performance as the 50:50 guy had more reason to push on.</p></blockquote><p></p>
[QUOTE="Kiwi Pete, post: 7403340, member: 63856"] It's an interesting one though (y) I think the real big players are 1. Land value/cost vs 2. Earnings after expenses SFP loss will be rather inconsequential compared to these two...? NZ used to be full of 50/50 sharefarming opportunities in the dairy sector when an acre was worth as much as a good BW cow - both sides bought about the same to the table and it was mutually beneficial But when land value climbed and cow value didn't, then it reduced that. Made more sense for the landowners to buy a herd, and put a manager or contractor on, and keep a bigger slice of the profit (or loss!!) but it often resulted in much lower herd performance as the 50:50 guy had more reason to push on. [/QUOTE]
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Is the contract farming business model finished without sfp? poll
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