CowBank has recently been involved in establishing three farm leases with high % sharefarming. These leases involved over 1300 cows in two states.

The opportunity this has provided for both the landowner and the sharefarmer is a WIN : WIN to all.  CowBank has played a small role in leasing some of the cows which gives the Landowner some cash to do the things they want to do and in doing so provide cash flow.

Our role has been in setting up the legal agreements and heads of agreement for the management entity, with assistance from professional advisors to the parties to do the final agreements.

The system was first used by one of our clients 10 years ago, and we watched them go on to farm ownership, and since then we have done it with 4 more clients. We are currently working on two more of these agreements.  The old 50:50 agreement used to work well when seasons were good and prices were reasonable but in the volatile times we currently face they damage all the parties.

If you are interested in these agreements give us a call.