Shared Equity Arrangement

A shared equity arrangement is the joint ownership of dairy assets — land, water, stock, plant or equipment — by two or more parties. Ownership can be of any, or all, of these components, and the arrangement can share ownership, attract investment, or move ownership between generations or to non-family operators.

Why use shared equity 

  • to find and keep good managers who have a stake — 'skin in the game', 
  • to transition ownership to the next generation, or to capable non-family people who do not have the capital to buy a farm,
  • to reach the capital or scale a single party could not achieve alone — buying established assets or greenfield development, and
  • to attract external (private, corporate or institutional) investment for growth — raising equity rather than taking on debt.

Some arrangements let existing farmers step back while keeping an investment in land or operations; others enable expansion or new projects. Every case is different, and there is no standard approach.

Making it work 

Alignment between the parties — their objectives, 'cultural fit' and approach to dairy farming — is critical. Get input from an experienced dairy consultant, and technical guidance from the right professionals: an accountant for tax, a solicitor to document the agreement, and a banker for finance options (see Getting help with planning). Communication matters, especially in the early start-up phase, and these relationships need careful, professional conduct.

Watch out

Shared equity arrangements are complex agreements. Be clear about the degree of alignment between the parties, and always document the arrangement properly with professional input.

Common questions

What is a shared equity arrangement?

The joint ownership of dairy assets — land, water, stock, plant or equipment — by two or more parties, set up for succession, investment or scale.

What makes a shared equity arrangement work?

Clear alignment between the parties, professional input (a dairy consultant, accountant, solicitor and banker), good communication, and a properly documented agreement.

Why set up a shared equity arrangement?

To keep good managers with a stake, transition ownership to the next generation or non-family operators, reach capital or scale, or attract outside investment without taking on debt.