Andersons were involved in the very earliest arable contract farming agreements in the 1970’s. The opportunities and benefits of two or more farm businesses working together have only increased since then. Contract Farming Agreements are very popular within livestock and dairy businesses as well as arable farms.
A correctly implemented joint venture can bring many benefits including:
- The continuation of a trading business with reduced daily workloads and responsibilities
- Taxation benefits – both income tax and capital taxation reliefs
- More efficient use of machinery and equipment – reducing capital employed
- Access to skilled labour and expertise – giving a long-term solution
- Access to capital and land, allowing young entrants / existing farmers to grow their businesses
- Greater marketing and input buying strength
- Leisure and lifestyle benefits
The Andersons Centre is well versed in establishing and over-seeing Contract Farming Agreements. We have template agreements which have become the industry standard, and have assisted many organisations in producing information to help publicise and encourage the development of further joint ventures.
A well-structured tenancy agreement should deliver benefits for both the landlord and tenant. The Andersons Centre has extensive experience in agricultural lettings. Areas that we cover include:
- Preparation of Farm Business Tenancies (FBTs)
- Assisting with preparing proposals and tenders for tenancy applications
- Assisting with obtaining suitable tenants including tendering and selection processes.
- Rent review calculations and negotiations for FBT & Agricultural Holdings Act tenancies
- Tenancy succession issues, including financial justifications to support applications
- Landlord and tenant dispute resolution
A tenancy is of course only one of a range of options for farming land. Contract Farming arrangements and other joint ventures can also be valuable alternatives.
There are many forms of other joint ventures beyond Contract Farming Agreements which can deliver significant benefits to both parties. We can advise on the establishment and management of the following: –
- Cow Hire Agreements
- Contract Heifer Rearing Agreements
- Contract Forage Growing Agreements
- Short-term Growing Contracts for crops such as maize and potatoes
- Labour Sharing arrangements
- Grazing Licences