December 08 2014
It’s now not uncommon for dairy farm settlements to occur mid-season. If you’re negotiating to buy or sell a dairy farm mid-season it‘s important that consideration is given to the dividend entitlement.
There are three options to consider:
- The dividend is included in the purchase price and is the purchaser’s entitlement
- The dividend is apportioned based on the contribution to production for the season, or
- The dividend is apportioned between the vendor and purchaser based on the number of days each party owns the property for the season.
Please keep these considerations in mind.