More farmers will turn to contract-farming agreements (CFAs) to combat uncertainty believes Strutt & Parker Farm Consultants.

Speaking at their business briefing earlier in the month, farm consultant Stephen Whiteford said benchmarked figures from the Strutt & Parker annual survey showed that after the 2017 harvest, farmer and contractor total returns were £353/ha and £367/ha respectively. He went on to state: “It is quite possible that CFAs will become a more prevalent option for landowners and potential contractors alike as we move towards the post-Brexit era. Certainly, if the farmer is able to achieve returns in the region of £320/ha and above, that ought to compare very favourably with the alternative of letting arable land. It has the added advantage of being tax efficient.

“A well-structured contract-farming agreement offers a means of maintaining agricultural activity for the landowner at the same time as maintaining access to potential rural development opportunities. For contractors, it offers a means of spreading fixed costs and increasing output, offering interesting opportunities for expansion.”