Joint ventures.

Bob12

Member
Mixed Farmer
Good morning.... joint ventures/contract farming. How do they work? Has anyone got experience and willing to share a example of how they work one.

I’m in my early 30s. Always wanted to farm in my own right. ( I know many people will have a opinion on this how ever it is what it is ) farming is my life pretty much. I have a very supportive wife we keep a few sheep of our own however we are wanting to move away from just working for someone and try and go into a joint sheep venture as we think this could be the way forward but know little about details on how they work. We don’t have huge capital but do have good experience and enthusiasm. Really just looking to see if anyone would share how they got started how the split works. Tia Bob.
 

unlacedgecko

Member
Livestock Farmer
Location
Fife
Good morning.... joint ventures/contract farming. How do they work? Has anyone got experience and willing to share a example of how they work one.

I’m in my early 30s. Always wanted to farm in my own right. ( I know many people will have a opinion on this how ever it is what it is ) farming is my life pretty much. I have a very supportive wife we keep a few sheep of our own however we are wanting to move away from just working for someone and try and go into a joint sheep venture as we think this could be the way forward but know little about details on how they work. We don’t have huge capital but do have good experience and enthusiasm. Really just looking to see if anyone would share how they got started how the split works. Tia Bob.

In a nutshell, you carry the risk and do all the work. The other party then takes half your profit.

"Play the game" - by which they mean you stick to the rules while they shove the bat up your arse.
 

puppet

Member
Livestock Farmer
Location
sw scotland
Scottish Borders
NFUS and Scot Gov run a land-matching service to introduce young farmers with older ones who would prefer not to move house or sell up but lack energy and fitness to farm any longer.
They should still offer experience and knowledge of the farm. All depends how much you trust and get on with each other and there is plenty advice on contracts
 

Formatted

Member
Livestock Farmer
NFUS and Scot Gov run a land-matching service to introduce young farmers with older ones who would prefer not to move house or sell up but lack energy and fitness to farm any longer.
They should still offer experience and knowledge of the farm. All depends how much you trust and get on with each other and there is plenty advice on contracts

I was going to say this would be your best bet. There are also some good institutional landlords like the mount stuart trust, worth keeping your ear to the ground but could be a long wait. Do something you love in the meantime
 

czechmate

Member
Mixed Farmer
NFUS and Scot Gov run a land-matching service to introduce young farmers with older ones who would prefer not to move house or sell up but lack energy and fitness to farm any longer.
They should still offer experience and knowledge of the farm. All depends how much you trust and get on with each other and there is plenty advice on contracts


@le bon paysan , this sounds perfect, does such a thing exist in France?
 
@Bob12
I have been associated with the setting up both JVs and Partnerships, in fact have successfully been involved myself in both. Here are the main ingredients (off the top of my head) essential for the smooth running of both systems of part equity ownership:
  • You both must have a trusted relationship with the other.
  • You both need to discuss your personal goals openly.
  • Write all points down on the roles of each party as a legal Agreement document and;
  • The exit clauses will end up being the largest part of this document.
  • Put a time line on the project.
  • The new entity (Partnership) pays a management wage to the working partner. Add a bonus system. Or;
  • The new entity (JV) pays the land owner/working partner a management wage equivalent to the current profit that would have been received if still in operation (adjusted annually).
  • Have business meetings at least 2 times per year. Get an independent chairman to assist, this usually prevents small disagreements turning into a crisis.
  • A long term vision (strategic plan) must be agreed upon and reviewed every few years.
  • The regular business meetings both review and plan ahead based on the seasonal production budgets.
  • Superior accounting systems today (such as Xero) allow both parties access to all facets of business management at any time, so nobody is kept in the dark.
  • Keep communicating openly and be honest.
 

Tim W

Member
Livestock Farmer
Location
Wiltshire
I've been involved in a couple of ''share farm'' ventures (share farm is a fairly broad term ) and i'd agree with @Global ovine above
Trust and flexibility are key i think, whatever you both agree at the start i'm pretty sure will change over time and you need to both be able to see this and adapt
There also has to be enough money in the job for both parties to take a profit

There is no magic formula ---you have to look at a farming system, see where it is weak and offer a way to improve it /make it work via your input

My advice would be to move location & the inability/unwillingness to do this is what holds many would be farmers back i think
There will be opportunities in the future to be involved in sheep share farming agreements on largely arable farms ---head east or if you have large ambitions/can take a bit of risk then head to somewhere like Romania ?
 

unlacedgecko

Member
Livestock Farmer
Location
Fife
I've been involved in a couple of ''share farm'' ventures (share farm is a fairly broad term ) and i'd agree with @Global ovine above
Trust and flexibility are key i think, whatever you both agree at the start i'm pretty sure will change over time and you need to both be able to see this and adapt
There also has to be enough money in the job for both parties to take a profit

There is no magic formula ---you have to look at a farming system, see where it is weak and offer a way to improve it /make it work via your input

My advice would be to move location & the inability/unwillingness to do this is what holds many would be farmers back i think
There will be opportunities in the future to be involved in sheep share farming agreements on largely arable farms ---head east or if you have large ambitions/can take a bit of risk then head to somewhere like Romania ?
Do you have any contacts on Romania? I'd be up for that.
 

unlacedgecko

Member
Livestock Farmer
Location
Fife
You’d want a big gun an plenty of ammo for the two legged vermin I bet!!😩
LGD 👌

Carpatin.jpg


These guys are the reason the sheep thieves are here and not Romania.
 

Tim W

Member
Livestock Farmer
Location
Wiltshire
I would have thought that Romania/Bulgaria/Hungary would be great places to farm sheep?
Close to large potential markets in N Africa etc
Romania has a large sheep industry already mostly aimed at dairy/cheese i think
 

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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