How share farming fits the bill in a changing landscape

摘要

The use of share farming agreements could rise as tighter gross margins and further cuts to direct subsidies in England make alternative arrangements such as contract farming less relevant.Share farming agreements operate where two parties jointly farm the same land, typically involving the owner or tenant of farmland entering a contract with a share farmer.Gary Markham, director at rural tax adviser and accountant Land Family Business, describes it as a true joint venture. He expects many alternative agreements to convert to the share farming model from this autumn onwards for several reasons, including financial sustainability, flexibility and to protect the inheritance tax (IHT) position of farm owners.The most common form of joint venture historically has been a contract farming agreement (CFA) with the Basic Payment Scheme (BPS) income included in the operation.