Contract Farming - we have 1,000s of acres of agriculture land in the UK & Egypt for contracting

WHAT IS CONTRACT FARMING

A farming joint venture between two parties, the Farmer and the Contractor.

A contract farming agreement is not a partnership; it is a joint venture between two parties. Both parties retain their individual identity as farm businesses in their own right.

FARMER PROVIDES

  • Land

  • Buildings & packing houses

  • Fixed equipment

  • New bank account 

CONTRACT FARMER PROVIDES

  • Management Expertise

  • Training (if required)

  • Machinery (if possible)​

THE AGREEMENT

The Contract Agreement sets out:

  • Terms of engagement - including length of agreement 

  • Operation of the contract

  • Formula for calculating remuneration to each party  -  share of the divisible surplus 

REMUNERATION

Following receipt of the final sales for the harvest year the divisible surplus is calculated. Once all incomings and outgoings are accounted for

  • A pre-agreed formula set out in the contract determines the shares to be allocated between the farmer/landlord and contract farmer

  • Total return will depend on cropping mix, crop performance, and overall contractor performance in managing the returns / performance.