Teagasc Share Farming Agreement

The Finance Commissioners are confident that landowners participating in legitimate farm-sharing agreements will continue to be considered “farmers” for the purposes of tax relief (see table on the right). For intermediate consumption, the supplier of each party may charge its share, for example.B. are charged three tons to each party when ordering six tons of fertilizer. After a long selection process that took into account his training, energy, enthusiasm and experience, John Sexton was chosen for the Share Farming model. Otherwise, a partnership or lease may emerge, which could have serious legal or tax consequences for the participants. Therefore, Share Farming should not be considered conacre in any other form of retirement mechanism for landowners, and neither party should enter into a sharing agreement to that effect. The terms of the agreement should be set out in a written contract. Share Farming can be fully compatible with EU and government support schemes, including one-off payments and REPS. •A Share Farmer provides mobile machines, its workforce, its expertise in management and agriculture. Either Party may also agree to make a financial contribution to the other Party, measured by reference to its rights of the EU or other Parties. The farmer and the landowner agree, on the basis of a budget, to distribute the agricultural products between them along certain percentages. Teagasc has developed this model specifically for dairy farming in Ireland.

“The goal is to create equity and maybe move on to another opportunity at the end of the current deal,” says John. •If EU and government aid is part of the agreement, the support provided by each party should be listed. It is well documented that the viability of Irish agriculture will depend, among other things, on the ability of farmers to increase the volume of their farms. Share Farming can be a way to increase farm size, increase efficiency, increase profits and improve lifestyle. Collaboration and shared farming can be as simple or as complex as you want, as long as the terms are clear and agreed. Share Farming is a contractual agreement between two independent companies. This is how the Gurteen equity business is operated, with Shinagh Estates being the first point of contact for suppliers. All of these splits are described in the legally binding sharing agreement, the templates of which are available on the Teagasc website. The big challenge for anyone thinking about Share Farming is the shift from known yield (a weekly salary) or perceived control (not ownership of the country) to a true reward and risk-sharing scenario.

As with all collaborative agriculture systems, trust between the parties is key. Calculating a budget for harvesting/business is the cornerstone of the agreement. Teagasc`s Share Farming agreement can serve as an invitation for aspects of the agreement that should be agreed as follows: – “The objective was to demonstrate how a share farming model can offer a good income to farm owners, but can also allow a person with some capital to create a dairy farm”, says John in the article compiled by Paidi Kelly of Teagasc Moorepark. and John McNamara, Teagasc Advisor, Clonakilty…