Agisting a property

5 posts
Tue, 09/23/2014 - 22:00 #1

Member for

11 years 3 months
Terry
Last seen: 02/29/2024 - 14:20
Joined: 09/13/2013 - 18:57

Agisting a property

Hi,

 

I have finally bought a 100 acre farm on the Bellarine Peninsula in Victoria and it is currently agisted out with cattle on it. While I did not buy the property to have someone else farm it, they would like to stay until these cattle go to market. This would suite me as it gives me time to settle in and  set the property up how I want it without the added distraction of running the farm. It would also enable me to keep the pastures in good shape without having to rush to stock it as well.

What I would like to know is what are the standard  terms for these type of arrangments and the expectation as to what is reasonable to charge.

 

Thanks in advance for any advice.

 

regards

 

 

Terry

 

 

 

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Sun, 10/19/2014 - 12:25 #2
charlie
Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi Terry,

Welcome to Farmstyle and thanks for your question.

There is a previous Farmstyle forum post which covers much of what you are looking for. 
http://farmstyle.com.au/question/leasing-or-agisting-livestock

I would definitely establish a formal lease agreement. Leases or agistment done on a hand shake are fine while everything is going well, however when a disagreement arises it can get very messy. The main reason for a formal lease agreement is to protect you, the farm and the livestock on it. Here ia a link to an online agistment agreement http://www.netlawman.com.au/d/agistment-agreement

Regarding the rate of agistment to charge, it will vary greatly from region to region, the class of livestock being agisted and the underlying seasonal conditions. When there is a drought and feed is in short supply the price of agistment will increase as it is in greater demand. As an approximate a cow will be $3-$5 per week and a cow and calf unit $5-$8 per week.

Do other member have livestock on agistment, and have a current agistment price?

Regards,

Charlie

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Fri, 10/24/2014 - 13:38 #3
Terry
Last seen: 02/29/2024 - 14:20
Joined: 09/13/2013 - 18:57

Thanks Charlie,

That is pretty much what they are paying. 

kind regards

Terry

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Wed, 11/12/2014 - 11:43 #4
barb
Last seen: 09/17/2019 - 18:07
Joined: 11/23/2011 - 09:38

Hi Terry,

I agree with the previous two replies, Rob and Charlie are very experienced cattle men. I would add, make sure that there is a date for the removal of the cattle on the written contract, otherwise you may find that the period they are on your block just keeps dragging on if there is no end time. There will always be an excuse not to remove them otherwise e.g., the market isn't right, there is drought, they aren't in sale condition etc., etc., it could just keep dragging on. Have been caught like that before. A contract made with a handshake is not worth the paper it isn't written on. In otherwords it isn't worth anything.

As Charlie said, get it on paper, the ammount, the time their stock will need to be removed etc.,

Don't want to be a worry wart, but I have been stung before, when everything was not down on paper, drawn up by a solicitor, your solicitor, not his. Never share a solicitor when doing a contract.  

regards,

Barb

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Wed, 11/12/2014 - 13:14 #5
Terry
Last seen: 02/29/2024 - 14:20
Joined: 09/13/2013 - 18:57

Thanks for the repsonse Barb, It is very much appreciated.

 

I have already done pretty much done what you have suggested. It remains to be seen whether it plays out as planned of course.

Must admit I cannot see any commercial sense in these arrangements for anyone other than the agistee as far as cattle and sheep go. 

Not so for horses where in the past I have paid  more for two horse per month than this deal provides for 50 head of cattle that have the run of some 90 acres of prime land.

 

 

 

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