Buying or Leasing Farmland: Which Strategy Suits You Best?
Hello
I know many of you are running on empty – mentally, physically and financially. The drought hasn’t broken and neither has the pressure. I’m not going to repeat what you already know too well. But what I do want to say: I see you, and I’m still here if you want to talk through your options, your finances or just get a few things off your chest.
For those that the weather has been kinder to, I know the challenges don’t stop at state lines. From market volatility to rising input costs and family dynamics, farming continues to test us all in different ways. Wherever you are, and whatever you’re facing, I’m always up for a chat. Sometimes a conversation is the first step toward finding a better way forward.
Exciting News – Meet the Newest Member of the Team!
I’m thrilled to share that my daughter Laura has officially joined Purvis AgriFinance! She’ll be assisting me with a range of administration tasks and bringing a fresh set of skills to the business.
Laura holds a Master’s degree in Business Analytics and Bachelor’s Degree in Psychology, and I’m incredibly proud (and excited!) to have her on board. You might see her attending some of my client meetings over the coming months, and she’s really looking forward to meeting many of you in person.
Having Laura on the team means even better support behind the scenes—and another pair of hands (and eyes) to keep things running smoothly.
Please join me in welcoming her to the business!
Buying or Leasing Farmland: Which Strategy Suits You Best?
In this blog, I take a closer look at one of the biggest decisions many farmers face—whether to buy or lease farmland. There’s no one-size-fits-all answer, and the best option really depends on your financial position, long-term goals, market conditions, and plans for growth.
Leasing farmland can offer greater flexibility and lower upfront costs, which can be a real advantage—especially if you’re expanding or starting out. It also gives you the chance to trial land before committing to a long-term investment. But it does come with some downsides, like lease uncertainty and the lack of equity building.
On the other hand, buying land can give you long-term stability, control over how you use the land, and the opportunity to build equity for the future. It’s a big financial commitment though, and can put pressure on cash flow—particularly during challenging seasons.
In this blog, I break down the pros and cons of each option and share some of the key questions I walk through with my clients. If you’re trying to decide what’s right for your farm, I’m here to help you weigh up the options and make a decision that supports your future.
Click Here: Buying or Leasing Farmland: Which Strategy Suits You Best?
Federal Election – what does it mean for Australian Ag
With Labor returned for a second term, Australian agriculture faces both ongoing challenges and some new directions. While there’s no dramatic policy shift, the re-elected government has laid out its intentions across key areas that will shape the sector in the years ahead.
Climate, Drought and Sustainability
The government is continuing its investment in drought preparedness, with further funding through the Future Drought Fund. This includes support for innovation hubs, on-farm training, and mental health services—welcome news for many regional communities doing it tough. Labor is also pressing ahead with its net zero agenda, with more funding for emission reduction in agriculture. However, the prospect of mandatory Scope 3 emissions reporting remains a concern for many, particularly in terms of cost and compliance burden.
Superannuation Tax and Succession Planning
A proposed change to tax super balances over $3 million—lifting the rate from 15% to 30%—has drawn criticism from farming families. For those with farm assets inside self-managed super funds, this could complicate succession planning and reduce flexibility around retirement structures.
Labour and Workforce Pressure
The PALM (Pacific Australia Labour Mobility) scheme remains the government’s primary tool for addressing workforce shortages in ag. But recent rule changes requiring a minimum of 30 hours work per week have caused a drop in participation. The Coalition’s promise to reintroduce an agriculture-specific visa has reignited the debate, with concerns about worker protections and competition between schemes.
Live Sheep Export Phase-Out
The live sheep export ban by sea remains on track for 2028. Despite a $107 million transition package, the decision continues to draw strong opposition—particularly from producers in Western Australia who argue the phase-out will cause significant economic harm and disrupt well-established trade routes.
Food Security and Strategic Resilience
Labor’s new “Feeding Australia” strategy aims to improve food supply resilience by reducing reliance on imported inputs like fuel and fertiliser. It’s a move in the right direction, but many in the industry are calling for more detail and clear implementation plans.
What’s Happening with Interest Rates?
As of early May 2025, Australia’s Big Four banks—Commonwealth Bank (CBA), Westpac, National Australia Bank (NAB), and ANZ—have updated their interest rate forecasts in response to easing inflation and global economic uncertainties. Here’s a summary of their projections for the remainder of 2025:
Commonwealth Bank (CBA)
4 cuts (Feb, May, Aug, Nov)
Expected Cash Rate end of 2025 – 3.35%
Predicts quarterly 25 basis point cuts starting February.
Westpac
4 cuts (Feb, May, Aug, Nov)
Expected Cash Rate end of 2025 – 3.35%
Aligns with CBA’s forecast for quarterly reductions.
National Australia Bank (NAB)
5 cuts (Feb, May, Jul, Aug, Nov)
Expected Cash Rate end of 2025 – 2.60%
Anticipates a 50 basis point cut in May, followed by 25 basis point cuts.
ANZ
3 cuts (May, Jul, Aug)
Expected Cash Rate end of 2025 – 3.35%
Expects three 25 basis point cuts starting in May.
These forecasts suggest a general consensus among the major banks that the Reserve Bank of Australia (RBA) will implement multiple rate cuts throughout 2025, aiming to bring the cash rate down from the current 4.10% to between 2.60% and 3.35% by year’s end. The anticipated cuts are driven by factors such as cooling inflation, global economic uncertainties, and a softening labour market.
The RBA’s next monetary policy meeting is scheduled for May 20, 2025, where further decisions on interest rates will be made based on the latest economic data.
“Some of our important choices have a time line. If we delay a decision, the opportunity is gone forever. Sometimes our doubts keep us from making a choice that involves change. Thus an opportunity may be missed” — James E Faust, American religious leader, lawyer and politician.
Have a great day!!
Deb
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Latest News
Ag Excellence Alliance, with the support of the Sheep Industry Fund (SIF), is pleased to be able to continue to bring you this highly valued platform on expected gross margins for broadacre cropping and livestock enterprises in South Australia. It incorporates the latest information on input and output pricing to give estimates of the relative profitability of different farm enterprises, as an aid to decision making in enterprise selection.
The 2025 Excel versions have been updated with:
- minor changes to the cropping version
- significant changes to the livestock version with improved features and updated livestock input costs and commodity prices.
The update of the livestock version reflects the current market with good returns for meat, particularly lamb but lower returns and profitability for wool production.
Workshops for a Solid Foundation (Succession in Family Business)
Succession is one of the greatest challenges associated with running a family business. Every family business needs to start planning for their future leadership. Whatever your planning horizon is to transitioning your business, now is the time to start having the conversation.
This workshop will enable participants to:
- Understand what Succession involves for families in business.
- Why Succession Planning is vital for any size family business.
- Succession Planning is an essential focus for the family, the business they operate and for owners.
- Understand the elements to Succession in family business.
- Be able to assess where they are on their Succession journey and plan further steps.
Australia’s wool production expected to continue downward
Australia’s 2024/25 wool production forecast has been dropped to 280.1 million kilograms as the number of sheep to be shorn is adjusted down 12 percent to 63 million.
The latest Australian Wool Production Forecasting Committee’s latest forecast of shorn wool production represents an 11.8pc decrease on its 2023/24 estimate.
The committee today said shorn wool production is expected to decrease in all states, although it expects the average cut per head to be comparable with 2023/24 at 4.45 kg greasy, down 0.2pc.
The AWPFC’s first forecast of shorn wool production for the 2025/26 season is 256.6 Mkg greasy, an 8.4pc decrease on the 2024/25 forecast.
Committee chairman Stephen Hill said the revised forecast reflects the continuing drought conditions in western Victoria and South Australia and a decrease in the number of sheep shorn and shorn wool production in all states.