Agricultural Leases and Share-farming Agreements

Buying and selling agricultural land represents a large capital cost. For many years, farmers have explored alternatives to help overcome this cost outlay and to generate profit efficiently. 

Leasing can provide a steady income to the landowner from land they no longer wish to farm. It also allows the lessee to achieve greater scale - without the capital cost (and debt) that comes from purchasing land. Before you enter into an agreement you must consider the term of the lease, the cost, each parties’ responsibilities, restrictions on the property and what should happen in the case of a default or dispute.

Share-farming provides an opportunity for land expansion, but with a different risk profile that will depend on the agreed share-farming arrangement.
Share-farming generally means that both the sharefarmer and the landowner share in the risks of farming. As with leasing land, a formal share-farming agreement is required, to set out how the share-farming operations will be managed – including detail about the parties’ responsibilities and costs.

Our experienced team can support you with drafting and reviewing your agricultural lease or share-farming agreement, or negotiating the terms and conditions, so you can get your relationship started on the right foundations.
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