Finance & pricing
How to price your land lease or agistment
A practical approach to setting a fair price, with typical ranges for common arrangement types.
Factors that affect price
- Location: Land closer to towns and markets commands more.
- Size: Larger parcels often have a lower per-hectare rate.
- Water: Land with reliable water is worth significantly more.
- Soil quality: Fertile, well-structured soil justifies a premium.
- Infrastructure: Fencing, sheds, irrigation, and yards all add value.
- Term length: Longer terms may attract a discount for security.
Common pricing approaches
Fixed annual lease
A set dollar amount per year. Simple and predictable. Typical range: 2 to 6 per cent of land value, or a per-hectare rate based on local comparables.
Per-hectare rate
Common for cropping and grazing. Varies widely by region and quality. Check recent sales and lease data for your area.
Agistment per head
Charged per animal per week or month. Rates depend on livestock type, season, and whether feed is included. Typical range: $8 to $25 per head per week for cattle.
Share farming
Instead of a fixed fee, the landholder and share farmer split the output or profit. Splits vary: 30/70, 40/60, 50/50 depending on who contributes what.
How to set a fair price
- Look at comparable listings on CoFarming and other platforms.
- Check state government agricultural lease data.
- Talk to a local agronomist or farm consultant.
- Be transparent with the other party about how you arrived at the price.
The right price is one that both parties feel is fair and that allows the land user to make a living.