Herd Leasing – Information

Why Use Herd Leasing?

Other financiers can offer stock mortgage finance, however, this is limited to 50% of a discounted cow value. The CowBank herd lease can finance the full market value of the cow because CowBank recognises the true value of the asset.

A CowBank herd lease is not linked to a land mortgage, so farmers have the security of knowing their mortgage capacity is available to support their overdraft.

Leasing machinery assets is very common – so why not use lease finance for livestock? Cowbank is an asset financier with a living asset that if properly managed will not lose value over time. As one client says, “I’ve never seen a tractor have a baby tractor to replace itself”.

Funds from a CowBank herd lease can be used for the following purposes:

  • The purchase of cows
  • As a property purchase deposit
  • For property improvement and upgrades
  • To provide additional working capital

How does Herd Leasing work?

Herd leasing is a financial tool which enables dairy farmers to lease cows (new or existing) as a means of funding their herd asset.


  • Once an application for new cows is approved, the farmer finds and selects suitable cows. CowBank then buys the cows and they are leased to the farmer.
  • Herd leasing is cash-flow friendly, with 60 monthly payments that are fully tax-deductable.
  • After completing the five year (60 month) lease, CowBank sells the herd of cows for 20% of the original purchase price. When the client buys the herd, legal ownership is transferred to the client.

Clients should obtain accounting/taxation advice for their specific circumstances


Business Associates

Call: 1800 300 269
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