Young Farmer – Renting Land or Joint Venture?
What’s the difference between renting land or a joint venture arrangement for a young farmer starting out?
Really, not all that much. In both cases, stewardship is still the main agenda.
However, though most people have a good idea of what renting land would mean. The term “joint venture” might not be as familiar for some people. A joint venture is a relationship of assets, which is fixed in time. The parties must decide what they’ll contribute towards the joint venture. The owner contributes the farm land, and the producer contributes his time and equipment. In addition, the parties will have to decide how they split input and profits.
Watch Fred Mertz discuss the difference between renting land and joint ventures in agriculture.
This workshop was funded in part by the Agriculture & Food Council of Alberta