Leasing an alternative

For seasoned producers looking to retire, parting with the family farm can be a daunting prospect too.

Stuart and Andrew Hill have set out to make the process easier, forming their own company National Land Lease in August 2013.

National Land Lease provides planning and negotiation services, assistance in leasing agricultural assets, as well as a rural real estate sales service.

Stuart Hill said he and his brother had travelled across Queensland and had personal experience with leasing.

Mr Hill said they are pitching their service at young families, landholders, and through to corporate entities.

"Essentially the company is all about dividing the asset up from the business so we have a landholder and a tenant," he said.

"We're gathering landholders who feel this is a path they would like to go down, whether they own one or multiple properties, to either sell or lease one of their properties.

“This is an alternative option as a product for landholders to consider, not only expanding their business but also improving their bottom line.”

Mr Hill said for many families, succession planning is a difficult subject.

Agribusiness is a high risk business, he said, especially when you have the burden of paying off a big asset.

“When you incorporate buying a business, capital on top of that and you still have to turn over a profit.

“From our personal experience we recognise the benefits of leasing as opposed to land ownership.”

Mr Hill said there were also opportunities for landholders to sell the asset, with National Land Lease bringing in an investor and then leasing the property.

“There are also landholders who may want to sell up their asset and re-lease it back so from that we are introducing an investor to the property,” he said.

“If we bring in the investment fraternity we can negotiate return on investment for landowners and also manage the lease on their behalf.

“If they go ahead with that, we can put it all in one bundle and supply a complete service.”

Mr Hill said leasing rural land has been common practice in the US, UK and Europe for quite some time.

The response has been good so far, he said, but they welcome enquiries from people who are interested in taking up the product.

“We are working with landholders and investors – we are a young company and we will expand as the market expands,” he said.

“I think the timing is right for the rural industry to consider this option.”