Claire Eastham: How we found the right system for our farm

We started via share farming back in 2015 against a declining milk price, with £20,000 of savings and a £40,000 loan. Running 180 spring-calving cows with a 20% share, as a conversion from beef to dairy.

After two years on this holding, we managed to repay the loan and build equity and we were successful in our application for a 132-acre Dorset Council farm.

We found another new entrant to take over the original share farming opportunity, but they bought us out over several years, which meant relying on the bank to fund more of our move than anticipated - effectively starting over again. Thankfully, they were pleased with our track record and we were still receiving a profit share from the first unit until we were paid out. I think the council also viewed us as having proven ourselves as able to run a herd and a business.

Managing the environment as well as the business

Through four landlords we now run 264 acres on an extensive system, which is a system we enjoy and that works for us and the holding – which is something all new entrants need to consider.

Looking back on our journey has made me think more about the advice I’d offer to anyone considering their own move into farming. What brings you joy? How can you utilise labour effectively? Are you a self-starter? What capital do you have? – Higher input systems often have higher capital investment.

When looking for opportunities it can often be that you take what is available at the time - as tenancies especially don’t seem to come around too often and are highly sought after. However, it may be that a different way into the industry, such as share or contract farming, might suit you better and can often give you scale and guidance that can be invaluable.

Good relationships are key to success

The only reason I have seen joint ventures fail is a poor relationship between the share farmers/contractors and the landowners. Choosing who you decide to operate with and having a good relationship as well as a structure in place to deal with any issues is critical.

Mutal respect is needed or often the (generally) younger party can feel like they are working to fund the other party. It's important that good joint ventures should be a win-win situation for both parties.

We were naive in our first venture and should have had a better structure in place – but we were and still are incredibly grateful to those that gave us that chance to get started. Including the bank manager!

Claire Eastham will be contributing to our next webinar - looking at Farming business models with Gary Makham of Land Family Business, on Monday, 9 December. Find out more and book your FREE place.