With the majority of farming and agribusinesses formed on the basis of a partnership between a group of family members, it is often felt there is no need for a written agreement to outline and protect financial and business assets.   

However, without a formal Farm Partnership Agreement, partners have limited protections if disputes arise, will have uncertainty surrounding their share of the partnership financials and assets, and increasingly will have limited opportunity to borrow from banks and lenders, who in today’s climate ask for an agreement prior to lending.   

A Farm Partnership Agreement is a formal document which aims to clearly define the conditions of a partnership and establish an agreement on ownership of all assets. This document will clearly outline shares of income and profits, contingency planning for if a partner should leave the business, an outline of how profits and losses on any sales of land will be dealt with, details of bank accounts borrowing and lending and details of how disputes can be resolved before they arise. 

The Farm Partnership Agreement should be regularly reviewed to ensure all information remains accurate and up to date. In the event that a dispute does occur, the Farm Partnership agreement should protect you, ensuring a swift and fair resolution for everyone involved.