AGRICULTURAL LAND BUY vs LEASE FINANCIAL MODEL

This model provides a comprehensive financial framework for evaluating land acquisition versus leasing decisions in commercial agribusiness. It is designed for farm managers, agricultural investors, and agribusiness consultants assessing long-term land tenure strategies. The model covers a 20-year planning horizon and includes: land purchase financing with full amortisation schedules, lease cost projections with escalation and rent reviews, sharecropping comparison, NPV-based buy vs lease analysis with two-way sensitivity tables, affordability benchmarking, three-method land valuation (income capitalisation, comparable sales, DCF), and multi-scenario analysis (Base / Upside / Downside). Net Present Value comparison (Buy vs Lease), maximum affordable rent per hectare, land valuation range across three methods, scenario-based recommendations, and cumulative cost projections with break-even analysis. The model uses deterministic projections — actual outcomes will vary with market conditions. Comparable sales data in the Land Valuation sheet requires user input of local transaction data. Sharecropping revenue share assumes a fixed percentage of gross output. Tax implications are excluded and should be assessed separately.