Agistment Agreements in Queensland: A Handshake Starts the relationship, a written agreement protects it
Agistment can be a practical way to manage seasonal feed shortages, reduce stocking pressure at home, spell country or run additional livestock.
Across regional Queensland, many agistment arrangements still begin with a conversation over the fence and end with a handshake. That may work perfectly well while the grass is growing, the water is flowing and everyone remembers the arrangement in the same way.
The trouble usually starts when conditions change.
A written agistment agreement can give both parties certainty about their responsibilities if feed runs short, water infrastructure fails, livestock escape, disease is detected or payment falls behind. A written agreement is not a sign of mistrust. It is a way of making sure everyone begins with the same expectations and has a workable plan if the season, the stock or the circumstances change.
What is an agistment arrangement?
Broadly, agistment involves livestock owned by one party being grazed on land occupied by another party in return for an agreed fee.
Agistment will not ordinarily give the livestock owner exclusive possession of the land. However, the legal character of an arrangement depends on the rights actually granted, not simply what the document is called. The agreement should clearly identify the available land, access rights, permitted activities and any excluded areas.
What should the agreement cover?
Every property and livestock operation is different, but an agistment agreement should usually address the following matters.
Land use and stock management
The agreement should specify:
- the permitted number, class and type of livestock;
- the paddocks and facilities that may be used;
- stocking limits and rotational grazing requirements;
- rights of access for both parties;
- whether supplementary feeding is permitted; and
- any restrictions on clearing, overstocking or changes to the land.
It should also deal with who may move the livestock, engage contractors and use yards, laneways, loading facilities and machinery.
Fees, duration and termination
Agistment fees may be calculated per head, by area or as a fixed weekly or monthly amount.
The agreement should record:
- how fees are calculated and whether GST applies;
- payment and invoicing dates;
- how stock numbers will be verified;
- the commencement date and duration;
- the notice required to terminate; and
- when livestock must be removed after termination.
It is also sensible to include a process for reducing stock numbers or ending the arrangement early if feed or water becomes insufficient.
Water, fencing and infrastructure
Neither party should assume the other will be responsible for every broken fence, dry trough or failed pump.
Before livestock arrive, the parties should inspect and record the condition of the property, including its feed, fencing, yards and water infrastructure. The agreement should then specify who is responsible for inspections, maintenance, repairs and emergency work.
Photographs or a short condition report can save considerable argument later.
Animal welfare
Under the Animal Care and Protection Act 2001 (Qld), a person “in charge” of an animal owes it a duty of care. Depending on the circumstances, more than one person may have responsibilities. A contract can allocate day-to-day tasks, but it may not remove statutory duties that otherwise apply.
The agreement should identify who will:
- check the livestock and provide feed and water;
- monitor illness, injury and body condition;
- arrange veterinary care;
- make urgent treatment or euthanasia decisions; and
- report welfare concerns to the other party.
The Queensland Government recommends that responsibility for the care of agisted animals be agreed before they arrive[1].
Biosecurity and livestock movements
Both parties must consider their obligations under the Biosecurity Act 2014 (Qld), including the general biosecurity obligation.
The agreement should address matters such as:
- weeds, pests, parasites and disease;
- livestock health and treatment requirements;
- quarantine and notification procedures;
- vehicle, equipment and feed hygiene;
- property identification codes and livestock identification;
- movement records and database notifications; and
- responsibility for testing, treatment or decontamination costs.
Clear procedures are especially important if disease is suspected or livestock movements are restricted.
Insurance, liability and emergencies
Escaped livestock can quickly turn a fencing problem into a serious incident, particularly if they reach a road or neighbouring property.
The agreement should address:
- the insurance each party must maintain;
- responsibility for escaped livestock;
- injury, illness, theft or death of livestock;
- damage to land, infrastructure or neighbouring property;
- bushfire, flood, drought and severe weather; and
- emergency contacts and decision-making authority.
Each party should also confirm with their insurer that the arrangement is covered by their existing policy.
What if the fees are not paid?
A landholder should not assume that unpaid fees automatically allow them to retain or sell the livestock.
In Fearnley v Finlay [2014] QCA 155, the Queensland Court of Appeal held that the particular agistment arrangement before it did not give rise to a lien under the Storage Liens Act 1973 (Qld). The Court also recognised that an agistor does not ordinarily have an implied common-law lien merely because agistment fees are unpaid.
The agreement should include a clear and lawful process for late payment, termination, removal of livestock and recovery of outstanding amounts. Legal advice should be obtained before including or attempting to enforce a contractual lien or other security interest.
Our Experienced Team Can Assist
The Team at Enterprise Legal can assist with:
- preparing an agreement tailored to the property and livestock involved;
- reviewing an existing or proposed arrangement;
- advising on liability, biosecurity and security interests;
- negotiating practical terms that work on the ground; and
- resolving disputes about fees, livestock, property damage or termination.
If you are considering agistment as a landholder or livestock owner, speak with our team as soon as you can. Getting the paperwork right at the beginning can save considerable time, cost and stress later.
