Leasing or agisting livestock

4 posts
Tue, 07/10/2012 - 06:52 #1

Member for

11 years 9 months
gaz
Last seen: 03/08/2018 - 21:05
Joined: 07/08/2012 - 21:20

Leasing or agisting livestock

Hi Guys,

I found this site on the weekend - plenty of answers already for a newcomer to farming.

I am in the process of finalising the sale on 180 acres in the Tweed shire.  It has 40 cattle on it at the moment that will go after settlement.  I will spend the next few years travelling back and forth so am interested in getting some cattle on the property to keep the grass down.

I would like to lease the land for grazing and would appreciate any advice on how this works, namely:

- are these agreements formal or are they 'handshake' deals;

- If the agreements are formal, is there a template or an individual or organisation that co-ordinates this?; &

- are there any traps/ pitfalls/ issues that I need to be aware of?

Any advice would be greatly appreciated.

Regards,

Gary

 

 

 

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Tue, 07/10/2012 - 16:34 #2
charlie
Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi Gary,

Welcome to Farmstyle and thanks for your question.

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. A lease or agistment agreement should include some of the following:

  •  Length of agreement, option for renewal, period of notice for termination.
  • Fees payable (in advance or arrears). If there are outstanding payments will a lien (line of security) be taken over the livestock. Agistment rates are based on dollars per head per week.
  • Average stocking rate, minimum and maximum number of animals that you will allow to graze at any one time.
  • Are progeny included? If you agist cows and they calve, will there be extra fees?
  • Animal welfare requirements and responsibility, e.g. fresh water must be always available. Usually the agistor's responsibility. 
  • Inspection of livestock, by whom and how often. This is usually the livestock owner's responsibility.
  • Infrastructure repairs and maintenance, e.g. fences. This is usually the livestock owner's responsibility.
  • Insurance, will the livestock need to be insured by the owner?
  • Indemnity agist owner of the livestock for costs and liability.
  • Vet call out and associated costs.

Here is an online agistment agreement for cattle that can be easily adapted for sheep. Word of warning - I have not used this company or agreement myself, please do so with caution and ensure it meets your own requirements before purchasing. If you don't want to use an online agreement, have your solicitor draft something up.

Hope this has been of assistance.

Regards,

Charlie

 

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Wed, 07/11/2012 - 11:32 #3
katiepooch
Last seen: 03/08/2018 - 21:05
Joined: 10/01/2011 - 10:46

Hi everyone,

In good seasons I run cattle here on agistment. I'm sure that the owner of the cattle had to do something with regards to the National Livestock Identification System (NLIS). The only reason I know this is that I had to give the owner of the cattle my Property Identification Code (PIC).  Does anyone know what the owner would of needed to do for the NLIS?  

It will be worthwhile for Gary to know if he has any responsibilities. 

Thanks,

Mary

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Mon, 07/16/2012 - 12:28 #4
charlie
Last seen: 12/26/2018 - 09:21
Joined: 05/31/2011 - 09:44

Hi Gary,

Mary, thanks for making that point. It was something that I had not considered.

The owner of the cattle needs to ensure that all of the cattle have the correct NLIS identification in place and that the movement of the cattle are recorded on the NLIS database within 7 days of the movement occurring. The farm where the cattle are agisted needs to supply the Property Identification Code (PIC) for the transfer to occur, as Mary explained above.

Cattle can be transferred yourself on the NLIS database or by a third party (stock and station agent, Livestock Health and Pest Authority (LHPA)).

Remember, if cattle are being transported the relevent National Vendor Declaration and Waybill (NVD) documents need to be completed.

Regards,

Charlie

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