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Machinery sharing joint ventures may be used on a ‘whole farm’ basis where two or more businesses will share all farm machinery or merely for a single piece of machinery such as a combine or sugar beet harvester.
Typically we would advise on the best practical set up and help the parties agree sensible terms and then work with the solicitors and accountants to ensure that the legal side of the agreement reflects the wishes of the parties.
Our consultants have extensive experience in the setting up, and subsequent management of machinery sharing agreements ranging from agreements that cover one machine to those that encompass a whole farm machinery schedule. We also understand the importance of the relationship between the parties and we are experienced in managing these, both in machinery sharing agreements and also in other joint ventures.
A machinery sharing agreement allows farm machinery to spread over a larger area, allowing for greater economies of scale and therefore reduced costs. The model can also justify the purchasing of larger equipment for smaller farms who otherwise may not be able to replace items such as combine harvesters. Machinery sharing agreements do not need to follow any set formula and can be set up in whatever way best suits the parties involved.
