Buying shares in an agricultural company (GAEC, EARL, SCEA, etc.) is a very attractive way of setting up in farming.
It allows you to reduce the purchase price, lower the level of risk, organise your working hours more effectively and avoid isolation in the countryside.
Buying a farm requires substantial financial capital, and banks are rarely prepared to finance 100% of the cost of a takeover.
By buying shares in a farming company, you take over only part of the overall value of the farm.
What's more, buying shares in a company allows you to isolate the purchase of production equipment from the purchase of farmland and a dwelling house, both of which weigh heavily on your financial capacity when you set up your own business.
Setting up on a farm always involves a financial risk, whether linked to production, the vagaries of the weather, the economic climate or simply the farmer's skills.
By becoming a partner in a farm, you are joining a business that already has a history and historic partners.
The risk will therefore be reduced, which reduces the pressure on the farmer and is a strong reassurance for the bank.
The sheer volume of work is one of the main drawbacks of farming. Working hours are highly variable, weekends are rare and holidays are limited.
As a partner in a farming business, you share the overall workload with several people. This makes it easier to manage work peaks and organise rest periods for everyone.
Another difficulty in farming can be geographical isolation, which can lead to social isolation. Working together helps to break this isolation, and exchanges between farmers will be a factor in constantly improving your work.
There are many farming businesses today in which one or more partners wish to retire (farm 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.
Bringing in a new partner helps to maintain the business and bring a new dynamism to the farm.
Buying shares in agricultural companies is therefore an economical and modern way of setting up, and meets the need for generational renewal in agriculture. At www.ma-propriete-agricole.fr, you will find farms for sale and shares in agricultural companies for sale.
