{"id":219797,"date":"2023-01-12T08:23:57","date_gmt":"2023-01-11T19:23:57","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=219797"},"modified":"2023-02-10T18:26:49","modified_gmt":"2023-02-10T05:26:49","slug":"what-is-share-farming","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/corporations\/what-is-share-farming\/","title":{"rendered":"What is Share Farming?"},"content":{"rendered":"\n

As a farmer, you may have thought about sharing your farm with another entry-level farmer. This is known as a share farming arrangement. This is where two parties come together to use the same piece of agricultural land. This arrangement is more popular here in New Zealand than anywhere else in the world. It does also exist in Australia. This article discusses what share farming is, and what legal documents may be needed to formalise a share farming arrangement.   <\/span><\/p>\n\n\n\n

What is Share Farming?<\/span><\/h2>\n\n\n\n

Share farming is a system of farming where a landowner provides agricultural land to a share farmer. The share farmer in turn provides their physical labour to maintain the farm and its livestock or chattel. The landowner is responsible for making sure that the farm\u2019s infrastructure (such as the sheds, yards, fences and water supply) is in good repair. Meanwhile, the share farmer brings their own stock and equipment such as tractors to the arrangement. Usually, the share farmer is responsible for all of the farm\u2019s operations. This includes taking responsibility for all stock-related expenses, general farm work and farm maintenance. <\/span><\/p>\n\n\n\n

Share farming is a contractual arrangement between <\/span>two parties who share income and expenses on an agreed-upon basis (usually 50\/50). They both work towards the larger goal of maintaining the farm. The share farming system allows entrants to the industry to gain experience managing a farm, build their capital, and hone their skills. If there is a good relationship between the parties, the arrangement is likely to be a win-win as the parties balance the risks and rewards.<\/span><\/p>\n\n\n\n

Do I Need a Share Farming Agreement?<\/span><\/h2>\n\n\n\n

While it is not legally required, it is strongly advised to have an agreement. The risk in not documenting the agreement is that the law treats the share farmer as an employee. An employee-employer relationship is usually not the intention of the party. If a landowner is deemed to be an employer, they will face additional obligations. These include compliance with employment laws such as Health and Safety laws, ACC, superannuation, GST<\/a> and taxation (PAYE<\/a>).<\/span><\/p>\n\n\n\n

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In determining whether the law views someone as an employee or contractor, an employee is someone that works for you, whereas a contractor is someone that works for themselves.<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

For this reason, it is worthwhile to make sure that the arrangement has a degree of interdependence. This ensures the share farmer obtains the appropriate degree of autonomy. This in turn encourages the share farmer to innovate and use their labour efficiently. If a share farmer has limited control in the operations of the farm and only acts under the landowner’s instructions, they may be deemed as an employee regardless of what is stated in the agreement.<\/span><\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

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