Agricultural tenancies give a person, who is not the owner of a farm, the right to occupy or use it for agricultural purposes.
Agricultural tenancies can be for:
- grazing
- dairying
- pig farming
- poultry farming
- viticulture
- orcharding
- beekeeping
- horticulture
- growing of vegetables and crops
- forestry, or
any combination of these activities.
Agricultural tenancies can involve:
- a lease or licence
- an agreed lease or licence within a tenancy agreement
- a tenancy at will (a verbal or ‘handshake’ agreement)
- a sharefarming agreement, or
- any other arrangement where a person who is not the owner of the farm has the right to occupy or use it.
Sharefarming agreements
A sharefarming agreement is when the owner supplies the land and assets, and the sharefarmer provides the labour, expertise, fertiliser (if necessary), the machinery and the marketing.
The appeal in this type of agreement is that the owner of the land benefits from receiving income for no work. If the season or prices are bad, the share farmer as well as the owner will suffer a reduction in income.
Sharefarming agreements vary and it’s important that you get advice from an experienced professional before signing an agreement.
Written tenancy agreements
Tenants and landowners have the right to have the terms of the tenancy agreement put into writing. The use of written agreements by tenants and owners is strongly encouraged to prevent disputes arising during the tenancy.
If there is no agreement on the terms, a tenant can apply to the NSW Civil and Administrative Tribunal (Tribunal) to have the terms of the tenancy determined.
Resolving disputes
The Tribunal has the power to resolve disputes about agricultural tenancy.
Applications must be lodged within:
- 3 months of the dispute arising, or
- 3 months of the end of the tenancy.
Tenants can apply for an extension.
The Tribunal cannot resolve disputes involving amounts more than $500,000.
Get more information about agricultural tenancies
Visit the Agricultural leases page on the Land Registry website for more information.
Other key resources and contacts include: