Are you a farmer in New Zealand looking to share your land or farming equipment? Or, are you a budding farmer wanting to start a farming business without the initial investment of buying land or equipment? If so, a share farming agreement may be the solution for you.
What is a share farming agreement?
A share farming agreement is a legal contract where one party (the landowner) agrees to provide the land, buildings, and/or equipment and the other party (the sharefarmer) agrees to provide their labor, expertise, and management skills to run a farming business together. In return, both parties agree to share the profits and/or losses of the farm business.
Why choose a share farming agreement?
Share farming agreements offer several benefits, such as:
1. Access to land and equipment without the initial investment of purchasing it outright.
2. The sharing of skills, knowledge, and experience, which can enhance the overall success of the farm business.
3. Flexibility in terms of the duration of the agreement, which can be short or long-term.
4. The opportunity for farmers to diversify their income streams by partnering with other farmers.
How to create a share farming agreement in New Zealand
Like any legal agreement, it`s essential to have a written and legally binding share farming agreement in place to protect both parties` interests. The agreement should cover all aspects of the farming operation, such as:
1. The duration of the agreement.
2. The roles and responsibilities of each party.
3. The allocation of profits and/or losses.
4. The maintenance and repair of equipment and buildings.
5. The management of livestock and crops.
6. Insurance coverage.
7. Termination clauses.
It`s recommended that both parties seek legal advice and negotiate the terms of the agreement before signing it.
Conclusion
A share farming agreement can be an excellent opportunity for farmers in New Zealand to partner with other farmers and share the benefits of running a successful farm business. By creating a written and legally binding agreement, both parties can protect their interests and ensure a successful partnership. If you are considering a share farming agreement, seek legal advice and negotiate the terms to ensure a fair and equitable partnership.