Share farming

[chewingthecud]

Hi, does anyone have any experience in share farming? Would it work in the UK? I feel it could work on my farm and want to explore potential pitfalls. Thanks in advance

 

[Beef farmer]

Ability to obtain a milk contract if not one already.

 

[sidjon]

@Devon lad operates as a share farmer.

 

[Sandpit Farm]

I have heard of quite a few. If you wanted more detail on it, let me know and I will pass on what I can. Are you interested in getting in or using it as an exit strategy/succession plan

 

[Cows 'n grass]

There's more contract farming than share farming in this country because HMRC prefer it for inheritance tax reasons.

I contract farm my farm, we run a new trading account in the landowners name. I provide all stock, labour and machinery and take a fixed fee for that. The landowner gets a rental equivalent and all variable costs come out of the trading account. Whatever is left at the end of the year is split on a percentage basis .

 

[betweenthelines]

Semantics

To me, your arrangement is Share farming. You provide the cows and labour, Landlord provides the land, you share the profit.

Contract farming would be you milk the landowner's cows for a set fee plus a percentage of milk cheque above a certain figure.

 

[chewingthecud]

Thanks for your comments, it seems like there is plenty of variations to share farming setups. I am just trying to figure out which would work for me and by giving the herds person(s) a vested interest might take the pressure off. I’ve been milking for nearly 30years and now have 3 employees but I still end up having to milk!

 

[milkmate]

What part of the country are you situated.

 

[Devon lad]

I’ve been lower order sharemilker (24% of milk cheque and surplus animals sold excluding culls) and am currently in my first year of 50/50 share milking. Both are almost exact copies of the NZ system. I’m doing it on my fathers Home farm, my sister and brother in-law are on identical systems on my fathers recently purchased other farm.

 

[betweenthelines]

Devon Lad, who pays for youngstock rearing or buying in replacements?

 

[Devon lad]

Devon Lad, who pays for youngstock rearing or buying in replacements?

Milk for feeding is 50/50 other costs are all mine

 

[Bald Rick]

Hi, does anyone have any experience in share farming? Would it work in the UK? I feel it could work on my farm and want to explore potential pitfalls. Thanks in advance

Yes my neighbour does it.
He puts up the land, infrastructure and machinery, his partner the cows
Profits shared 50:50

 

[milkmate]

would like an opportunity like this but can not seem to find one any advice anyone

 

[Cows 'n grass]

Semantics

To me, your arrangement is Share farming. You provide the cows and labour, Landlord provides the land, you share the profit.

Contract farming would be you milk the landowner's cows for a set fee plus a percentage of milk cheque above a certain figure.

You're quite right. The landlord actually does provide the cows in my agreement.

He has a lease agreement on a herd of cows that is completely separate from the contract farming agreement. The lease agreement just happens to also be with me.

 

[Cows 'n grass]

would like an opportunity like this but can not seem to find one any advice anyone

What's your position currently?

 

[milkmate]

Position as in current job or position as in availability , experience , or location ???

 

[Cows 'n grass]

Position as in current job or position as in availability , experience , or location ???

Current job, experience etc?


There are positions out there but you need to speak to the right people.

 

[Jaffa Cakes]

You're quite right. The landlord actually does provide the cows in my agreement.

He has a lease agreement on a herd of cows that is completely separate from the contract farming agreement. The lease agreement just happens to also be with me.

How does the leasing work when it comes to replacements, culls and deaths etc?

 

[Cows 'n grass]

The cull value returns to me. The dairy CFA pays for the semen and I buy the resulting calves from the CFA, I then rear these calves on another rented farm that is nothing to do with the CFA.

 

[sidjon]

I’ve been lower order sharemilker (24% of milk cheque and surplus animals sold excluding culls) and am currently in my first year of 50/50 share milking. Both are almost exact copies of the NZ system. I’m doing it on my fathers Home farm, my sister and brother in-law are on identical systems on my fathers recently purchased other farm.

Have you purchased Carole's place?