What is Contract Farming?
A Contract Farming Agreement (CFA) is a joint venture between a Farmer (landowner) and a Contractor (Whiteman’s).
Both the farmer and contractor retain their individual identity as sperate farm businesses in their own right, the landowner still taking advantage of the tax benefits and reliefs associated with being a trading entity although not doing the day-to-day farming.
The farmer provides the land and buildings, where buildings are available.
The contractor provides the labour, machinery, grain storage/drying (if required) and management expertise.
The farmer maintains a bank account to pay for the input costs: seed, fertilisers and sprays, as well as services such as agronomy. The proceeds from crop sales are paid into this account as well as income from environmental schemes and the Basic Payment Scheme.
Typically, a fixed fee is paid quarterly to the contractor and annually to the farmer, with an agreed profit-share arrangement paid to each party at the end of the year. The result is a mutually agreeable partnership, sharing the joint success of the contract farming agreement.
Our Role
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We focus on providing an efficient, modern and sustainable approach to farming.
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Taking responsibility for all elements including the day-to-day farming operations, from managing environmental & SFI agreements to selling the grain at the best possible price.
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Managing the financial aspects; reducing cost and increase margins for the landowner.
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Landowner involvement throughout the year with regular management meetings.
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Advice on different approaches and aspects of farm & land management.
The Benefits
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For landowners, a CFA allows them to stay in farming, taking advantage of tax benefits and other business benefits such as residential and sporting.
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Allows the landowner to maintain control of the farm whilst reducing physical input and time.
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Release of capital if an existing machinery fleet is to be sold.
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Utilising the contractor’s investment in machinery and technology.
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The improvement of the farm's assets such as soil structure and health for long term productivity.
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Contract Farming Agreements with us can be tailored to meet the individual needs of the farm owner.
A partnership for growth.