Contract Farming is becoming more and more popular due to the tax benefits to the landowner/farmer.
However if the correct contract is not drawn up from the outset, the tax benefits which make it a viable farming option could be lost.
The main principle of a Contract Farming Agreement is that the landowner/farmer is trading as a business complete with the usual risk of making a loss. If they are not then it is unlikely the landowner/farmer will benefit from the tax reliefs available.
If you would like to discuss matters relating to contract farming, please contact the Rostons Team on 01829 773000.