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Armston Farm

At Armston Farm, we realise the need for greater efficiency, technology and management to retain margins in the current climate. We are committed to agriculture and its requirements and are able to take on farm contracting, part management agreements or complete farm services

Contract Farm Agreements

Whilst commercial factors should be the principal driver behind a change in farming strategy, it is important to always consider the taxation implications, as some significant differences and potential tax liabilities can arise. For instance, a switch to contract farming will be the continuation of a farming trade, letting out on a FBT will not. As a result, tax advantages associated with trading activity will be lost under the FBT route.


Under a Contract Farm Agreement, we would pay for the machinery, labour and fuel. The landowner or tenant pays for seed, fertilizer, sprays and some specific overheads, whilst the landowner operates a farm business bank account. Both landowner and our selves receive a ‘first charge’ from the farm profit. Any surplus is to be divided by an agreed rate after a deduction of interest on working capital.