Taking the confusion out of leasing rural land
Story Added : 02nd June 2011
Successful Land Leasing in Australia – A guide for farmers and their advisers, identifies ways of valuing leases, which is a critical step in establishing a lease, especially for grazing land where stock values are high.
The study was produced by the Rural Industries Research and Development Corporation (RIRDC).
“It examines how leased land can be managed in a profitable and sustainable way that is fair to both landowner and tenant,” RIRDC senior researcher manager Ken Moore said.
“The economies of scale of broadacre farm businesses are often directly related to the return on capital achieved, with bigger businesses tending to achieve higher returns. Many farm businesses would improve their financial situation by leasing land and investing some of the income into land improvements.
“This option is especially attractive when it allows for the land to be managed in a sustainable manner, making it a win-win situation for both the landowner and the tenant.”
For more information go to www.rirdc.gov.au