Herd Leasing – Information

Funding Dairy Cows, Beef Cows and Prime Lamb Ewes

CowBank has been leasing cows to dairy farmers for over 20 years and we also have specialised options for leasing beef cows and prime lamb ewes.

Why Use Herd Leasing?

Other financiers can offer stock mortgage finance – usually limited to 50% of a conservative cow value. CowBank herd leases can finance the full market value of the cow because CowBank recognises the true value of self-replacing livestock assets.

Using leasing to fund machinery assets is very common and it is even more effective for livestock. Cowbank’s herd lease funds a living asset that, when well managed, grows in value for our clients. As one client says, “I’ve never seen a tractor have a baby tractor to replace itself”.

A CowBank herd lease is not linked to a land mortgage, so it works well for farmers who don’t own land, as well as those that do.

Funds from a CowBank herd lease are most frequently used to fund herd growth. But can also be used to release capital from your existing herd to fund working capital, capital improvement/investment or a property purchase deposit.

How does Herd Leasing work?

Herd leasing is a financial tool which enables you (the farmer) to lease new or existing cows or ewes as a means of funding your herd asset.

  • Once CowBank has approved your application, you locate and select suitable cows to be purchased. CowBank then buys the cows for you and the Herd Lease commences for the agreed term.
  • CowBank’s typical Herd Lease runs for 5 years, but the agreed term can be shorter or longer depending what works best for you.
  •  CowBank can structure cash-flow friendly monthly or seasonal lease payments to suit your enterprise. The lease payments are fully *tax deductible, which can make your CowBank herd lease remarkably cost effective on an after-tax basis.
  • CowBank agrees with you the final value that the leased herd will be sold for at the end of the term, typically 10%-20% of the commencement value. When you pay the final value to CowBank at the end, you own the leased herd.
  • To end the herd lease early, you can ‘buy’ the leased herd from CowBank at any time at buy-out values that diminish toward the final value through the term.

*Clients should obtain accounting/taxation advice for their specific circumstances


Business Associates

Call: 1800 300 269
Cow Bank