Share farming

[onthehoof]

What is a standard type of agreement where one party puts the land in and the other does the farming

 

[Chae1]

Contract farming.

 

[Happy]

One puts land in. The other provides machinery and carries out the work.
Split all growing costs, crop income and SFP 50% each.
Will need to recalibrate once SFP goes.

 

[onthehoof]

One puts land in. The other provides machinery and carries out the work.
Split all growing costs, crop income and SFP 50% each.
Will need to recalibrate once SFP goes.

But if SFP is split 50/50 anyway just carry on splitting whatever replaces it?

 

[Brisel]

Share farming normally splits all income by a certain % and the costs by a certain %. Contract farming is different. Set fees for both parties then an agreed share of what is left in the pot.

 

[Steevo]

....and here was me thinking that the BPS was supposed to be kept out of farming.

 

[Brisel]

But if SFP is split 50/50 anyway just carry on splitting whatever replaces it?

That depends on the cost of getting the ELMS income. If the share farmer/contractor carries 80% of the costs of complying then they ought to get at least 80% of the income.

 

[Beefsmith]

That depends on the cost of getting the ELMS income. If the share farmer/contractor carries 80% of the costs of complying then they ought to get at least 80% of the income.

Doubtful as most of these agreements are just covers for a fbt without the words fbt or tenancy involved to con the tax man. We’ve done them before and as long as the land owner gets his set guaranteed return they don’t care.

 

[Lincsman]

What happens when no crop is planted that year?... who pays the fallowing cost?

 

[Flat 10]

What happens when no crop is planted that year?... who pays the fallowing cost?

It seems logical to me that the contractor gets no fee (except perhaps for a glypho pass) and the farmer keeps the BPS......?

 

[Brisel]

It seems logical to me that the contractor gets no fee (except perhaps for a glypho pass) and the farmer keeps the BPS......?

Even if they have done cultivations? Not very sharing.

 

[TWF]

We used to knock off jobs not done. We were share farming but the farmer kept all the BPS. But if there was a loss or no profit the farmer took all the loss and we only got the first charge. He is the farmer so has to risk something.

 

[Flat 10]

Even if they have done cultivations? Not very sharing.

Hadn't considered that..........

 

[richard hammond]

It seems logical to me that the contractor gets no fee (except perhaps for a glypho pass) and the farmer keeps the BPS......?

Most share farm agreements are not done year by year they normally run over an agreed length of time so things tend to average out, for instance when was the last time crops were not drilled or planted on such vast areas as this year, im getting to be an old git and I have never seen these extremes!!

 

[Flat 10]

Most share farm agreements are not done year by year they normally run over an agreed length of time so things tend to average out, for instance when was the last time crops were not drilled or planted on such vast areas as this year, im getting to be an old git and I have never seen these extremes!!

i thought they were settled up annually.

 

[onthehoof]

I’ve never really got my head around our agreement, it was set up donkeys years ago and goes something like this
We pay partner for all inputs - spray, fert lime etc, we also pay all cultivation’s plus storage and handling.
They pay us all the income from sales of crops, then we share profit.
We keep BPS.
The inputs and outputs are usually about equal., so we finish up with about £80/ha plus half of profit if any and we claim vat back which is about £6.5k
Does this sound like a fairish agreement, the costs work out about £690/ha

 

[Lincsman]

I’ve never really got my head around our agreement, it was set up donkeys years ago and goes something like this
We pay partner for all inputs - spray, fert lime etc, we also pay all cultivation’s plus storage and handling.
They pay us all the income from sales of crops, then we share profit.
We keep BPS.
The inputs and outputs are usually about equal., so we finish up with about £80/ha plus half of profit if any and we claim vat back which is about £6.5k
Does this sound like a fairish agreement, the costs work out about £690/ha

If I understand you, then you would get the same by not farming it... less the cost of topping?

 

[onthehoof]

If I understand you, then you would get the same by not farming it... less the cost of topping?

we do make a profit some years and we also get straw for cattle which is the biggest plus - forgot to mention that! plus the vat works out to £100/ha

 

[Turkish_FR]

I am interested