12th May, 2025
Leasing agricultural land in New South Wales (NSW) is a common practice, especially in rural communities. These arrangements allow non-owners to use land for various farming activities, including grazing, dairying, horticulture, beekeeping, and more.
Types of Agricultural Tenancies
Agricultural leases or tenancies can take various legal forms. Some are formal written leases, while others are verbal agreements or handshake deals. Additionally, tenancies can be established through licences or share farming arrangements. Each type carries different rights and obligations, so understanding the structure is crucial.
Share farming is a popular option in rural NSW. Under this model, the landowner provides land and infrastructure. Meanwhile, the sharefarmer contributes labour, equipment, and sometimes marketing. Profit is shared between both parties. However, because returns are seasonal and market-dependent, both parties can bear the risk of poor outcomes.
Written Agreements
While informal agreements do occur, written agreements are highly recommended. They set out terms clearly and reduce the chance of disputes. Fortunately, both landlords and tenants can apply to the NSW Civil and Administrative Tribunal (NCAT) if disagreements arise.
Importantly, if parties cannot agree on the lease terms, a tenant can ask NCAT to determine them. This application must be made within three months of the dispute or end of the tenancy.
Legal Framework NSW
The Agricultural Tenancies Act 1990 (NSW) regulates various aspects of agricultural leases, including the encouragement of written agreements and the establishment of default terms when no formal lease is in place. However, this Act does not set a maximum lease term.
Under the Conveyancing Act 1919 (NSW), leases of part of a land parcel can exceed five years, but only if they meet certain legal requirements. Leases of part of a parcel for five years or more (including any option to renew) must describe the leased area by reference to a registered plan of subdivision approved by the local council.
Crown land leases in NSW can be granted for terms of up to 100 years, including any renewal options. These leases must comply with specific approval and registration requirements to ensure legal protection and enforceability.
Longer lease arrangements—especially involving agricultural or Crown land—should always be reviewed for compliance with the appropriate legislation and registration requirements to safeguard the interests of all parties involved.
Other Considerations
Before entering an agreement, it’s wise to consider any restrictions or third-party rights. For example, native title claims, mining permits, or environmental protections may limit how the land can be used. In addition, planning laws and water rights can significantly affect farming operations.
Transitioning to a new lease or tenancy should never be rushed. Due diligence helps avoid legal or financial trouble later.
At Castrikum Adams Legal, we understand that rural and agricultural property matters often involve unique complexities. Whether you’re dealing with a lease, a land use agreement, or navigating planning or environmental regulations, our team has the experience to guide you. Contact us today!
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