Australian Fair Food Forum

Land Access, Ownership and Share Agreements

For those of you weren’t able to get to the Deep Winter Agrarians Gathering, here are some brief notes based on the summary of the session ‘Land Access, Ownership and Share Agreements’ led by Erica Watson.

Erica shared her experience of leasing land for her farm. Much discussion surrounded the need for instituting a cap if you are going to have a revenue-based lease arrangement, and the benefits of a lower cap level.

The complications of combining residential tenancy with commercial lease and employment agreements was explored, given the different laws governing each. The message was to keep them separate.

Land share arrangements were discussed, looking at the potential commercial benefits for land owners. Communication was seen to be key, with the observation that very different life experiences of land owners and farmers could make things difficult, and may require some kind of assistance to facilitate communication. Arrangement is likely to have higher level of success when both parties are actively farming; when there are relatively even power relationship and when there’s clear values alignment.

Aboriginal sovereignty and treaties were recognised as important elements of discussion. When agreement is reached with original land custodians on particular land, it has potential to reframe all of these discussions and take the dichotomous/adversarial nature of land use arrangements.

An organic regenerative investment model (eg oricoop) was touched upon, looking at the power behind shifting farm ownership towards custodianship.

People asked for a place to share lease / share agreement examples and other experiences and models - so here it is!

I am in the process of writing my lease for my new peace of land in Clunes, will put it up as a document when my solicitor has checked it out.

Anyone know what the longest lease you can have in Vic is? It’s complicated but I want to lease a paddock for 99 years and the owner is willing … can I do it?

I don’t know the answer @Charlie_Showers but I know someone who might - will email them

ok here’s the answer . .
"Is the question whether you can have a 99 year lease? If so, then the answer is yes.

You just need to be cautious that you don’t trigger a stamp duty liability by reason of the lease – long term leases can be treated like sales for duty purposes."

If things progress and you want the contact details for this lawyer I can send privately.

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Hi all

I recently went to a DEPI Young Farmers’ Business Bootcamp, run by Meridian Agriculture. It was mostly aimed at more conventional farmers but we got quite a lot out of it. I will be posting more in around the forum as we work through stuff ourselves

But directly related to this discussion . . they recommended Dairy Australia as the best place to go for lease and share farming templates. They are developed for the dairy industry, but they are very transferrable to all other farming enterprises. They include excellent checklists of all the things to think about and discuss, and make sure you have written down, as well as the actual lease template to work from -
http://www.thepeopleindairy.com.au/planning-for-the-future/leasing

There is lots more info at the link above, but I have attached the docs here just to save you some clicks

ToolC-LeasingPropertyChecklistv2.docx (44.1 KB)
Tool D2-PropertyLeaseAgreementSchedulesv3.docx (15.5 KB)
Tool D3-PropertyLeaseAgreementInfoSheetv3.pdf (202.6 KB)
ToolD1-LeasingPropertyAgreementTemplate-Clausesv2.pdf (230.6 KB)

I haven’t looked at the share farming stuff myself yet but suspect it is also useful - http://www.thepeopleindairy.com.au/engagement-reward/share-farming.htm

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Awesome thanks Kirsten, that is really helpful to know. We’ll see how it pans out, we’re hoping to avoid a lease and just own the land outright however might not have that option… Will let you know…