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LiveinHope

Land Prices And Share Farming

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I know farmers always get a bashing here for their subsidies, but that is the system of how we pay for food.

There is a far more worrying issue in the UK for youngsters (again), however.

The farming programme on R4 at 5.45 am today was talking about "Share Farming"

Share Farming has come into being because the cost of buying a farm is now prohibitively high for many new entrants.

"Under Share Farming, new 'entrants' team up with an existing landowner and share the ownership and profits of their partnership. The idea being that one party has plenty of ideas and energy, the other has land, buildings and capital".

The grip tightens

We're doomed.

http://www.bbc.co.uk/programmes/b048n3f2

Edited by LiveinHope

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To be fair this has been common in the southern hemisphere for years and has been around as long as agriculture in one form or another.

It allows a farmer to invest his capital in say, his herd and leave the capital farm investment to someone else.

They will then split profits after agreed costs.

So,say where there are two farms and they need to merge to remain viable,one farmer may go and get another source of income whilst t'other works on the basis of the agreed split.

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To be fair this has been common in the southern hemisphere for years and has been around as long as agriculture in one form or another.

It allows a farmer to invest his capital in say, his herd and leave the capital farm investment to someone else.

They will then split profits after agreed costs.

So,say where there are two farms and they need to merge to remain viable,one farmer may go and get another source of income whilst t'other works on the basis of the agreed split.

Not knowing the southern hemisphere I can't argue. But the UK Sharing is being marketed as a way in to farming simply because it is now too expensive to buy a farm at 10k an acre. Everyone will be a farm manager.

Edited by LiveinHope

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Share farming has been around for years and years it's nothing new or revolutionary.

It comes in quite a few different guises and it's quite a good way for neighbouring farmers to pool resources and labour etc.

I wouldn't get too concerned about it tbh.

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Share farming has been around for years and years it's nothing new or revolutionary.

It comes in quite a few different guises and it's quite a good way for neighbouring farmers to pool resources and labour etc.

I wouldn't get too concerned about it tbh.

Neighbouring farms poolong resources, contractors, farm managers, tenants, all ways to 'farm', yes. But I think this is a new addition simply because the cost of starting up is getting ever more prohibitive for young farmers, and what at the end ?

Edited by LiveinHope

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Neighbouring farms poolong resources, contractors, farm managers, tenants, all ways to 'farm', yes. But I think this is a new addition simply because the cost of starting up is getting ever more prohibitive for young farmers, and what at the end ?

It's always been expensive to get into farming,hence why share farming and tenanting have been around for so long.Also hard to find land in the UK.

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It's always been expensive to get into farming,hence why share farming and tenanting have been around for so long.Also hard to find land in the UK.

The new arrangements for share farming are different to traditional tenancies. The model is being touted as a way for young farmers to "get on the farming ladder".

The farm tenants association don't appear to like them, calling for normal tenancy arrangements instead.

The country landowners association are all in favour.

Separate vested interests perhaps.

The share farming scheme as I heard it described on the radio certainly seemed unfavourable to the young farmers, farming them instead.

Perhaps it seems to me that at every level the young are being made to work ever harder to service inflated values of land and property. I'm not young BTW and don't own any property, but I wish it were different for them.

Edited by LiveinHope

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http://en.wikipedia.org/wiki/Sharemilking

'Sharemilking, a form of sharefarming, operates in the dairy industry. The application of this model of agriculture occurs particularly commonly in New Zealand. Typically sharemilkers own their own cows, and will often take the herd with them when shifting between properties on "Gypsy Day".[1] The model is not exploitative, and over time, sharemilkers often slowly buy out the landholder, or alternatively use the system as a method to save for their own property.[2]

This practice helps dairy farmers anywhere who do not wish the burdens of owning their own land, as it allows them to focus their investment in livestock and equipment. Sharemilking also profits former dairy farmers who have given up their herds, by providing them with an income from rental of fields, pastures and barns.

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http://en.wikipedia.org/wiki/Sharemilking

'Sharemilking, a form of sharefarming, operates in the dairy industry. The application of this model of agriculture occurs particularly commonly in New Zealand. Typically sharemilkers own their own cows, and will often take the herd with them when shifting between properties on "Gypsy Day".[1] The model is not exploitative, and over time, sharemilkers often slowly buy out the landholder, or alternatively use the system as a method to save for their own property.[2]

This practice helps dairy farmers anywhere who do not wish the burdens of owning their own land, as it allows them to focus their investment in livestock and equipment. Sharemilking also profits former dairy farmers who have given up their herds, by providing them with an income from rental of fields, pastures and barns.

I am sure it works. But really, does anyone like it, or is it simply putting a gloss on the situation driven by people wanting an income from ownership, and that is getting costlier and costlier ? I could be wrong and times might have changed and I haven't noticed, since I have been out of close touch with agriculture for about 15 years, although I still live on a farm in the UK.

Edited by LiveinHope

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It's a tried and tested formula for landowners. Take all the subsidies you can, never give up any land (unless it's at £1M/acre for houses).

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Owning a share of a farm cannot possibly generate a profit for the owners, but might provided an income (via subsidies and working tax credit) and a home for the young farmer. I guess it comes down to a trophy assets and inheritance tax free vehicle for the boomer investors that are struggling to cope with the billions that are accruing in their coffers courtesy of QE.

R4 Farming Today said as much....zero income for the shareholders.

Same old story people buying up zero yielding physical assets at astronomically prices in favour of cash which is worth plenty in terms of consumer goods.

Edited by crashmonitor

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Owning a share of a farm cannot possibly generate a profit for the owners, but might provided an income (via subsidies and working tax credit) and a home for the young farmer. I guess it comes down to a trophy assets and inheritance tax free vehicle for the boomer investors that are struggling to cope with the billions that are accruing in their coffers courtesy of QE.

R4 Farming Today said as much....zero income for the shareholders.

Same old story people buying up zero yielding physical assets at astronomically prices in favour of cash which is worth plenty in terms of consumer goods.

That is the crux of it.

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