New Diversification Lease for Pastoralists

October 29, 2026

Author name
Proposed Amendments to the Land Administration Act 1997

On 18 November 2021 the Minister for Lands, Tony Buti, announced that the Land Administration Act 1997 (WA) would be amended in 2022 to introduce a new, more flexible form of land tenure for unallocated Crown land and pastoral land known as a ‘diversification lease’. 

Currently, the Land Administration Act only permits pastoral and unallocated Crown land to be used for grazing livestock. Pastoral leases in WA are granted for a period of 50 years with an option to renew, which most pastoralists exercise at the end of the lease period. The proposed ‘diversification lease’ will allow pastoralists to extend their pastoral lease for a further 50 years and use their land for other than pastoral purposes including horticulture and renewable projects such as wind farms and carbon sequestration projects. 

The Minister has said that this new ‘diversification lease’ will also open up large areas of land for conservation organisations to preserve or rehabilitate biodivsity or for Native Title holders to undertake economic development activities such as cultural tourism. 

Diversification Leases

The diversification lease that has been proposed will not extinguish native title rights and interests where there is native title, nor will it prevent mining and exploration activities from occurring. However, the Minister has indicated that all diversification leases will require the establishment of an Indigenous land Use Agreement with native title holders in the area. 

The Northern Territory has been granting diversification leases to pastoralists through the Northern Territory Pastoral Land Act 1992 and the Crown Lands Act 1992 for several years and many pastoralists in the Territory have been able to leverage opportunities in the renewable energy sector and diversify their operational activities. 

The Minister believes that the proposed amendments will:
  • Offer greater certainty of tenure for pastoralists; 
  • Provide new large-scale carbon farming opportunities on Crown and pastoral lands; 
  • Remove red tape to aid in the fight against climate change;
  • Facilitate important renewable energy projects in regional WA;
  • Unlock economic opportunities for Native Title holders; and 
  • Be another step closer in WA’s transition to net zero emissions by 2050.  
Some farmers and pastoralists have raised concerns about the practicality of the diversification lease and whether the proposed amendments will make much difference to the average pastoralist. Most renewable energy projects are very costly and require investment from external sources in order to be established. Diversification leases may only be a viable option for pastoralists with other interests, whom can gain large investments. However, a diversification lease may be an avenue for pastoralists to establish carbon projects and participate in the Commonwealth’s ERF scheme.

The amendments are still being drafted so the details of the diversification lease will not be known until a Bill is introduced into parliament, scheduled for early 2022.

Until then if you would like further information in relation to how the above matters may affect your business, please contact us on (08) 9321 5451 or by email at office@bailiwicklegal.com.au.

By Matilda Lloyd (Paralegal)

For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au/

The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
October 29, 2026
For many growers, the biggest barrier to pursuing a claim is not the legal process itself. It is the relationship. In regional communities, suppliers, agronomists and growers often work together over many years, and many farmers are understandably reluctant to raise concerns if they believe it may damage a valued business relationship. Recent discussions regarding the performance of certain canola varieties have highlighted an important issue for farming businesses: protecting your legal rights does not necessarily mean taking an aggressive approach or ending a long-standing commercial relationship. Where concerns arise about the performance of a seed variety, chemical or other agricultural product, growers are often hesitant to make inquiries or seek compensation because the supplier may be a trusted local business or a person they have dealt with for decades. However, raising legitimate concerns and seeking advice should not be viewed as a personal attack. In many cases, suppliers will notify their insurer as soon as a significant claim is raised. From that point, discussions regarding liability and compensation are often managed by insurers, loss assessors and legal representatives. As a result, a grower may effectively be dealing with an insurance claim rather than a dispute directly with the supplier. That distinction is important. A claim can often be investigated and resolved without permanently damaging an otherwise productive business relationship. At the same time, growers should be aware that not every supplier is insured for every type of loss. Some businesses may not carry insurance that responds to large-scale agricultural claims, while others may not have sufficient coverage where multiple growers are affected. Early advice can therefore be critical in understanding both your legal position and the practical realities of recovery.  If you are experiencing concerns regarding crop performance, keep detailed records, retain product packaging, batch information, invoices and correspondence, obtain independent agronomic advice, and seek legal advice before signing any settlement agreement, release or non-disclosure agreement (NDA). Protecting your rights does not have to mean burning bridges. Often, the best outcomes are achieved through early communication, careful investigation and practical resolution. Author: Matilda Lloyd, Associate Director of Bailiwick Legal, assists farming families and agribusinesses throughout Western Australia with commercial disputes and risk management. For assistance with all of your agribusiness needs, contact Bailiwick Legal: West Perth Office on 08 9321 5451 or email office@bailiwicklegal.com.au Bridgetwoen Office on 08 6288 6240 or email bridgetown@bailiwicklegal.com.au For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
October 29, 2026
One of the most common concerns we hear from growers experiencing issues with agricultural products is: "I don't want to sue someone I've known for years." In regional communities, business relationships matter. Suppliers, agronomists and growers often work together over many seasons, and many farmers are understandably reluctant to take action if they believe doing so may damage those relationships. However, pursuing a claim does not necessarily mean attacking a long-standing business relationship. In many cases, the supplier will notify its insurer of the claim and the matter will be managed by the insurer and its representatives. Where insurance is available, discussions regarding compensation often proceed through the insurer's claims process rather than as a personal dispute between grower and supplier. For that reason, growers should not assume that raising legitimate concerns about product performance will automatically result in the loss of an important commercial relationship. That said, every situation is different. Some suppliers may not carry insurance for particular losses, and others may not have sufficient insurance coverage to respond to multiple large-scale claims. In those circumstances, early advice can be particularly important, both to preserve evidence and to understand the practical options available. If you believe a seed variety, chemical or other agricultural product has not performed as represented, keep detailed records, obtain independent agronomic advice and seek legal advice before signing any settlement agreement, release or non-disclosure agreement. The earlier advice is obtained, the more options are generally available. Author: Matilda Lloyd, Associate Director of Bailiwick Legal, assists farming families and agribusinesses throughout Western Australia with commercial disputes and risk management. For assistance with all of your agribusiness needs, contact Bailiwick Legal: West Perth Office on 08 9321 5451 or email office@bailiwicklegal.com.au Bridgetwoen Office on 08 6288 6240 or email bridgetown@bailiwicklegal.com.au For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.
October 29, 2026
Recent concerns regarding the performance of certain canola varieties have attracted significant attention across the Western Australian grain industry. The issue was recently discussed on the ABC WA Country Hour, where Philip Brunner, Director of Bailiwick Legal, commented on the legal issues that may arise when agricultural products fail to perform as expected. Farmers understand that crop performance can be affected by seasonal conditions, rainfall, frost, pests, disease and other factors beyond their control. However, different considerations may arise where a seed, chemical or agricultural product does not perform consistently with the representations made by the supplier at the time of sale. A well-publicised dispute involving John Snooke, a grower from Cunderdin, highlighted these issues when concerns were raised regarding the performance of a herbicide-tolerant canola variety. Following intervention by the WA Department of Consumer Protection, compensation was ultimately paid to affected growers. As input costs continue to increase, growers should be aware that legal protections may be available where a product: Does not match its description; Is not fit for its intended purpose; or Fails to perform in accordance with representations made by the supplier. If a crop is underperforming, growers should retain seed tags, invoices, marketing materials and paddock records, obtain independent agronomic advice and notify the supplier as soon as possible. Early evidence can be critical in assessing whether a legal claim may exist. Importantly, growers should not sign any settlement agreement, release or non-disclosure agreement (NDA) without first obtaining independent legal advice. These documents may limit future rights or prevent growers from discussing the issue with others who may be similarly affected. Author: Matilda Lloyd, Associate Director of Bailiwick Legal, assists farming families and agribusinesses throughout Western Australia with commercial disputes and risk management. For assistance with all of your agribusiness needs, contact Bailiwick Legal: West Perth Office on 08 9321 5451 or email office@bailiwicklegal.com.au Bridgetwoen Office on 08 6288 6240 or email bridgetown@bailiwicklegal.com.au For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.