The purchase of shares in an agricultural company (GAEC, EARL, SCEA, etc.) is a very interesting way of carrying out a project to set up in agriculture. It reduces the purchase price, lowers the level of risk, allows you to better organise your working hours and avoid isolation in the countryside.
Concerning the cost of taking over a farm: The purchase of a farm requires significant financial capital and banks are rarely prepared to finance 100% of the cost of a takeover. By buying shares in a farming company, you are only taking over part of the overall value of a farm.
Moreover, buying shares in a company allows you to isolate the purchase of the production tool from the purchase of farmland and a house, which weigh heavily on your financial capacity when setting up.
Setting up on a farm always represents a financial risk, whether it is linked to production, climatic hazards, the economic situation or simply linked to the farmer's skills. By becoming a partner in a farm, you enter a business that already has a history and historical partners. The risk will therefore be reduced, which reduces the pressure on the farmer and is a strong reassurance for the bank.
The volume of work is one of the main disadvantages of farming. Working hours are very variable, weekends are rare and holidays are limited. As a partner in an agricultural company, you share the overall workload with several people. This makes it easier to manage work peaks and to organise rest periods for everyone.
Another difficulty of farm life can be geographical isolation which can lead to social isolation. Working together can break this isolation and the exchange between farmers will be a factor of permanent improvement of one's work.
Today there are many agricultural enterprises in which one or more partners wish to retire (agricultural retirement, new project, etc.). The remaining partners do not always wish to take over the shares of the retiring partners and compensate for the reduction in the workforce, which represents a double burden. The entry of a new partner makes it possible to maintain the business and bring new dynamism to the farm.
The purchase of shares in agricultural companies is therefore an economical and modern way of setting up and meets the need for generational renewal in agriculture. On www.ma-propriete-agricole.fr, you will find farms for sale and shares in agricultural companies for sale.
Buy an Agricultural property - Shares of farm companies
