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What is a Contract Farming Agreement
with Eastern Farms Ltd?

A Contract Farming Agreement (CFA) is a joint venture between a farmer (landowner or tenant) and a contractor - Eastern Farms Ltd. Each party retains their individual status and is a separate trading entity. The farmer engages the services of Eastern Farms Ltd (as contractor) to establish, grow and harvest a crop from stubble to stubble.

As the farmer (landowner or tenant) remains a farming business in their own right, they are able to utilise the tax advantages and reliefs associated with being a trading entity. The farmer funds the input purchasing and the crop remains their property until the point of sale.

The basis of a CFA with Eastern Farms is flexible. We can tailor the agreement to suit each individual's needs.

Contract Farming

What does Eastern Farms Ltd provide?

Eastern Farms Ltd provides:

The level of management input from the farmer is negotiable – we are happy to provide a complete farm management package (see Administration section) and similarly, we are happy to take input from farmers who wish to be involved in the growing of their crops and marketing of their produce.

It is advisable to have at least quarterly minuted meetings.

What does the farmer provide?

The farmer provides:

And where they are available for use for the agreement:

The farmer maintains a bank account to pay for the input costs, primarily seed, fertilisers and sprays, as well as items such as agronomy and soil sampling. The proceeds from crop sales are paid into this account as well as income from environmental schemes and the Basic Payment Scheme.

Advantages to the Farmer