A Smarter Way to Grow

Herd leasing

How Does CowBank Herd Leasing Work?

Herd leasing offers a smart and flexible approach - it keeps cash flow steady, preserves capital, and provides tax benefits along the way.

Here’s how it works:

Step 1:

Get in Touch - Let’s start the converstion

Maybe you already know exactly what you need? Maybe you’re still working through the details?

Either way, the first step is simple — pick up the phone.

If your plan is concrete, great — CowBank can review it with you and get the ball rolling.

If you’re a new farmer or just want to run an idea past someone who understands dairy, CowBank is happy to chat.

They’ll help you consider your options and structure a proposal.

Call CowBank

Step 2:

Get Approval for Finance

Once you’ve started your application, CowBank will visit you.

CowBank will assess your business to approve your finance, giving you the confidence to move forward.

This step ensures your finance structure suits your farm’s cash flow, allowing you to secure the right cows at the right time.

Unlike banks, CowBank understands dairy businesses, approvals are fast — often within a week — so your plans remain on track.

Download applications form

Download application checklist

Step 3:

Set Up the Operating Lease

An operating lease is different from a loan. Instead of owning the cows from day one, you lease them for a set term— typically two to five years — with structured, tax-deductible monthly payments.

Every lease payment is a full business expense, reducing your taxable income, unlike a traditional loan, where you’re repaying principal plus interest (and only the interest is deductible).

Understand the difference between a lease and loan

Step 4:

Choose the Cows You Need

With your finance approved, CowBank now pays for the cows you have selected to fit your business goals — whether that’s expansion, upgrading genetics, or refinancing.

CowBank can help you select your cows if you need support with this decision.

Because you’re leasing the cows, there are no big upfront costs and no impact on your land finance.

Step 5:

Milk the Herd, Grow the Business

The cows remain on your farm, producing milk and generating income, just like if you owned them outright.

But because you haven’t locked up capital in the purchase, you’ve got cash available for feed, infrastructure, or even farm expansion.

Step 6:

it’s End-of-Lease time

At the end of your lease term when the final residual herd value is paid to CowBank (typically 10-20% of the original herd value), ownership of the herd is transferred.

Ready to chat about herd leasing?

Whether your plan is fully formed or still taking shape, give CowBank a call. They’ll walk you through the numbers, help refine your approach, and set you up with the right structure to move forward with confidence. Because the sooner your cows are in the paddock, the sooner they’re making you money.