A New Lease on Land: Motives to Lease Australian Ag Land Are Increasing
The incentives for leasing Australian ag land are growing stronger, both for tenants and landlords. For farmers looking to expand, we see it becoming more important to consider leasing as part of their strategy.
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On the tenant side, we expect that leasing will unlock access to scale for a growing number of farmers in an environment of limited purchase opportunities. Furthermore, as the average size of farm businesses continues to increase, leasing will enable expanding businesses access to a diverse range of business models and ownership structures.
For landlords, ag land is continuing to become more attractive as an asset class.
While leasing will continue to be more common in some production types than in others, and with some farm sizes more than others, we consider it increasingly important that farmers consider the value of leasing land as a part of their expansion strategies.