Share farming in the sheep and beef industry

Abstract

The share milking agreement has been part of the dairy industry for many years now and plays an important role in combining equity and providing a path to farm ownership. The sheep and beef sector has been slow to pick up on this concept. To highlight this it is estimated that one third of all dairy farms in New Zealand employ a share milker where as it is thought that less than 2% of sheep and beef properties involve share farming to any degree. For this reason it is felt that there is huge potential in the sheep and beef industry for share farming as a means for young farmers who otherwise wouldn't be able to grow their equity through farming and land owners who are looking for an alternative management structure to combine their resources. The aim of the study is to give those considering the idea a brief overview of what is involved, what has already been done and what possibly needs to be considered before entering into such an agreement.