Farm Table says:
Leasing land can assist with:
- Scale and efficiency
- Reduce debt risk.
This factsheet outlines responsibilities of both parties, the importance of a formal lease agreement and how to determine the value of a lease.
The landowner is usually responsible for paying rates, rents, public liability insurance and infrastructure insurance.
A written lease agreement should include definition of area of be leased, duration of lease, agreed starting date, lease payment terms and timing, details around the repairs and maintenance of pastures, equipment and structures, intensity of cropping, access to water and capital improvements.
A lease value can be determined through percentage of either capital value, gross margin or expected gross income.