We acted on behalf of the tenant in relation to an Agricultural Holdings Act rent review for a grassland farm holding in the Southeast. The instruction involved reviewing the landlord’s proposed rental increase, analysing comparable evidence, assessing the productive capacity of the holding, and preparing a detailed negotiation strategy.
The work included:
- Inspection and assessment of the holding
- Review of tenancy documentation and statutory framework
- Analysis of local rental evidence and market trends
- Preparation of detailed rental calculations and supporting evidence
- Negotiation meetings and correspondence with the landlord’s agent
- Advising the tenant throughout the process and securing an agreed settlement
Services and solutions used in the project
- Agricultural tenancy and landlord & tenant consultancy
- Rent review negotiation under the Agricultural Holdings Act
- Comparable evidence analysis
- Strategic negotiation and dispute avoidance
- Financial appraisal of the farming business
Key project details
A key aspect of the instruction was balancing statutory AHA valuation principles with current agricultural economic pressures, including input costs, commodity volatility, and the condition and capability of the holding itself.
Careful consideration was also given to:
- The tenant’s historic investment in the holding
- Repairing liabilities and infrastructure condition
- Comparable AHA evidence within the local market
- The sustainability of the farming operation over the review period
The matter was successfully concluded through negotiation, avoiding the need for third-party determination or arbitration.
Project scope
- Agricultural Holdings Act tenancy 1986
- Mixed agricultural holding comprising approximately 200 acres
- Tenant representation throughout the full rent review process
What measurable results or benefits did this project deliver?
- Successfully negotiated a significantly reduced rental increase compared to the landlord’s original proposal
- Protected the financial sustainability of the tenant’s farming business in light of the difficulty of the agricultural sector at the moment
- Achieved a fair and evidence-based settlement without formal dispute proceedings
- Helped maintain a positive long-term landlord and tenant relationship
- Reduced potential legal and professional costs associated with arbitration
Additional benefits
- Increased confidence for the tenant in future business planning
- Greater clarity around the holding’s productive and rental position
- Strategic advice delivered throughout a sensitive negotiation process
“ The advice and negotiation support provided throughout the rent review process was invaluable. The final outcome was both fair and commercially realistic, and the process was handled professionally from start to finish. ”
Will there be similar projects in the future?
Yes. Agricultural tenancy negotiations and rent reviews continue to form an important part of our professional work, particularly as farming businesses navigate ongoing economic pressures and changing agricultural policy.
Any new goals or challenges ahead?
Future objectives include:
- Continuing to support tenants and landowners through increasingly complex rural property matters
- Advising clients in response to evolving agricultural policy and subsidy reform
- Expanding strategic rural consultancy and long-term estate planning services
- Delivering commercially practical outcomes while preserving long-standing rural business relationships
