Agreement · Agribusiness & Rural Law

Share farming agreement (cropping or grazing)

A written share farming agreement between a landowner and a share farmer: the land and exclusions, who supplies what, shares of income and costs, accounts, condition records, improvements, termination and disputes.

Kind
Agreement. A contract between two or more parties.
Where it applies
Australia, New South Wales
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
18 October 2026
Status
Maintained. Checked on 18 October 2026 against the 4 authorities it cites, for Australia and New South Wales.
Version
1
Source
Written for this library

When to use it

Use when a landowner and a share farmer agree to share the costs, risks and produce of a cropping or grazing operation instead of a lease. In NSW a sharefarming arrangement is a tenancy under the Agricultural Tenancies Act 1990, so its implied terms apply and cannot be contracted out of.

How AI may be used

AI may fill the agreement from the parties' agreed term sheet and budget and list terms still to be settled; the lawyer checks the shares, the risk allocation and the Act's implied terms before it is signed.

AI may

  • Populate the schedule from the agreed term sheet, paddock maps and budget
  • List checklist items from the GRDC table that the term sheet does not yet cover
  • Cross-check lot and DP numbers, areas and water licence numbers against the title and register searches

AI must not

  • Must not set or suggest the income and cost shares, which are a commercial decision for the parties on their own budgets
  • Must not draft terms that waive the tenant's rights under the Agricultural Tenancies Act 1990 (NSW), which are void to that extent
  • Must not treat the arrangement as employment or a partnership without the lawyer deciding that question

The lawyer checks

  • The arrangement is genuinely a share farming arrangement and not a lease, employment or partnership, and tax and primary producer status advice has been obtained
  • Shares of income and of each cost category match the parties' agreement and the budget, and who owns the crop or stock at each stage is clear
  • Termination and notice terms are consistent with s 14 of the Act, including the crop-growing notice rule
  • Inclusions and exclusions (water, machinery, buildings, residence) and the condition record at the start are complete

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Read the full text

More in Agribusiness & Rural Law

All precedents for Agribusiness & Rural Law · Tasks and AI use in this area