Farm business management: The benefits of separating land assets from the operating business

first page of Farm Business Management fact sheet, "The benefits of separating land assets from the operating business".

Traditionally, land assets and farming operations have been run together as one farming business. The benefits from separating the real estate (farm land) from the operating business relate to alternative options for farm scale expansion, succession and retirement.

Key points

  • Broadacre farming is predominately a combination of two businesses, an operating business and a real estate (land) business.
  • The performance of each needs to be analysed as a stand-alone business, as well as in combination.
  • Treating the operating and real estate businesses separately provides effective and flexible options for succession and retirement, investment and expansion pathways.

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GRDC Project Code ORM00004

Region South