More farmers willing to share gains and risk

Farmers attending the Teagasc tillage conference heard about the growing interest in the new share farming business model.

Michael Hennessy, of the Teagasc Oak Park staff, said share farming is an arrangement where two parties, the landowner and a share farmer, carry on separate farming businesses on the same land without forming a partnership or company.

Each party agrees to share in the costs of growing the crops, and to take a share of the gross output (grain, straw, etc.) The cornerstones to a share farming agreement are trust between the parties, and correct operation of the agreement. The share farmer and landowner keep their own financial accounts and calculate their own profits as independent businesses.