Leasing & Agistment Toolkit

Are you a young farmer starting out or looking to grow your business? The Leasing and Agistment Toolkit is here to help.

The Young Farmer Business Programme has developed a range of videos, factsheets, and templates to support you in reaching your farming goals through leasing land and/or through the agistment of your stock.​

The resources below will help you understand how leasing and agistment models can support you in your farm business, assist you in calculating a lease and/or agistment rate, highlight things to look for when developing a lease or agistment contract, and inform you of pitfalls to be aware of when heading down these paths.

This toolkit was developed in conjunction with Airlie Landale from Farm Table. The toolkit also features video interviews with experts in the field, Jason Croker from RSM Australia, Patrick Barrett from Walsh & Blair Lawyers, Prue Branagh from ANZ and Emily Alexander from Agripath. They provide insights from different perspectives on all things leasing and agistment!

Introduction to Leasing

Leasing land offers a viable path to expand your farm business operations and enhance economies of scale without the need for significant capital investment in land, which can be prohibitively expensive, especially for new farmers.​

This approach allows for growth and efficiency improvements while mitigating the substantial upfront costs associated with land ownership.

A lease agreement typically involves the tenant, or lessee, paying an annual fee to the lessor for the use of their land over a specified period. This fee may be a fixed amount or indexed to inflation, commonly for a duration of three to five years. This arrangement provides a structured framework for land access and usage.

The accompanying video and factsheet serve as an introduction to the concept of leasing farmland. They are designed to help you ascertain whether this model aligns with your objectives for either initiating or expanding your agricultural enterprise.

Factsheet: An Introduction to Leasing

Calculating a Lease Value

There are several ways to calculate a lease value for agricultural land.​

Some of the most common are:

• Percentage of market land value of the leased land
• Percentage of expected gross margin
• Percentage of expected operating profit
• Pounds per hectare

The factsheet, video, and lease calculator below will help you to calculate a lease rate based on your circumstances. These resources will assist you in preparing a lease budget.

This preparation will enable you to enter discussions with the landholder, armed with viable options and a thorough understanding of what is sustainable for you.

Factsheet: Calculating a Lease Value

Template: Lease Calculator (Example)

Template: Lease Calculator (Blank)