Share Farming

What is Share Farming?

Share farming is a collaborative farming arrangement in which two or more parties — typically a landowner and a farmer — operate a farming business together while remaining independent, sharing both the costs and the returns from the enterprise.

Unlike contract farming, where the landowner retains most of the financial risk, share farming involves a genuine partnership in which each party contributes assets such as land, labour, machinery or livestock, and receives a proportionate share of the output or profit.

Share farming is designed to combine resources, skills and capital without creating a formal tenancy or employment relationship.

How Share Farming Works

Share farming agreements are flexible but usually involve clearly defined contributions:

A. Landowner Contribution

Provides land and infrastructure
May contribute buildings or livestock
Shares in production risk

B. Farmer Contribution

Supplies labour, machinery and expertise
Manages day-to-day operations
Shares in financial outcomes

C. Shared Returns

Income is split based on agreed proportions
Each party earns according to their contribution

D. Cost Sharing

Inputs such as seed, feed and fertiliser are shared or allocated

E. Agreement Structure

Typically medium-term and flexible
No transfer of land ownership or tenancy

Why Share Farming Matters

1. Collaborative Farming

Combines strengths of different parties to improve efficiency.

2. Reduced Capital Barriers

Allows new farmers to enter without owning land.

3. Shared Risk & Reward

Both parties benefit from success and share challenges.

4. Resource Optimisation

Better use of land, labour and machinery.

5. Succession Planning

Supports transition between generations or new entrants.

Share Farming in the UK

Share farming is less common than contract farming in the UK but is increasingly used in:

Succession planning arrangements
Bringing new entrants into farming
Expanding existing farm businesses
Livestock and mixed farming systems

It is particularly attractive where:

Landowners want to stay involved in farming
Farmers lack access to land
Both parties want a genuine partnership model

Industry bodies such as the NFU and CLA provide guidance on structuring agreements.

Share Farming in Europe, USA & Globally

Europe

Share farming exists in various forms across Europe, often linked to cooperative and partnership farming models.

United States

Similar arrangements exist, often referred to as sharecropping or crop-sharing agreements, particularly in arable systems.

Global

Globally, shared farming models are used to improve access to land and resources, particularly in developing agricultural economies.

Share Farming vs Contract Farming

Feature	Share Farming	Contract Farming
Risk	Shared between parties	Primarily landowner
Control	Shared decision-making	Landowner retains control
Payment	Share of profit/output	Fee + bonus
Relationship	Partnership	Service agreement

Share farming is a partnership.
Contract farming is a structured service arrangement.

Share Farming vs Tenancy Farming

Feature	Share Farming	Tenancy Farming
Land Ownership	Landowner retains control	Tenant rents land
Payment	Share of output	Rent paid to landowner
Risk	Shared	Tenant carries most risk

Share farming shares outcomes.
Tenancy farming involves rent.

Advantages of Share Farming

1. Shared Expertise

Combines knowledge and experience.

2. Lower Entry Barriers

Supports new entrants into farming.

3. Flexible Structure

Agreements can be tailored to both parties.

4. Efficient Resource Use

Maximises use of land and assets.

Challenges of Share Farming

1. Complex Agreements

Requires clear contracts and communication.

2. Profit Sharing Disputes

Needs transparent accounting and trust.

3. Relationship Dependence

Success relies heavily on partnership quality.

Related Terms

Frequently Asked Questions (FAQs) on Share Farming

What is share farming in simple terms?

Share farming is when two parties farm together and share the costs and profits.

How is share farming different from contract farming?

In share farming, both parties share risk and rewards, while in contract farming the landowner retains most of the risk.

Who owns the land in share farming?

The landowner retains ownership of the land.

Is share farming common in the UK?

It is less common than contract farming but is growing, particularly for succession planning and new entrants.

What are the benefits of share farming?

Benefits include shared risk, lower capital requirements and improved resource use.

Can share farming help new farmers?

Yes. It provides a pathway into farming without needing to own land.

Key Resources on Share Farming

Learn the meaning of more essential agricultural terms with our easy-to-use Key Terms Glossary here