CFA, Contract Farming Agreement.Friend has sudden health problems and can't keep running their dairy. Milking 260. They put new rotary parlour in about 5 years ago. Complicated inheritance issues so can't sell, not for the next 10 years. Local old boy stepped in and took over running for time being to help out, but they need a plan going forward. They won't ever be able to take it back on themselves.
What options do they have - do you reckon anyone would lease (even for a small amount) an operational dairy?
MUCH easier on a block calving herd.
Fixed return for the farmer. Fixed "contractor's fee".
Profit split on a shared basis.
Know a wonderful chap that wanted to step back, has a couple in their thirties running the farm, very hands off, going great guns for 5 years now.
Also ensures eligibility for Agricultural Property Relief.
The key is finding the right partner.
Call Anderson's and they will talk to you about all the options.
Good luck to your friend.