Contents
If you have been thinking of getting into the agricultural industry and starting your own agribusiness, then it’s important to understand your legal obligations before taking the leap.
Like starting any small business, there are a number of legal considerations to take into account before setting up an agribusiness. It’s a priority to make sure you know them well, so you can be equipped to make the best decisions possible for your business. Let’s get started!
What Is An Agriculture Business?
An agriculture business or an agribusiness involves the farming, cultivating, rearing or managing of livestock and crops. Agriculture not only produces the food we consume, but also many of the raw materials essential to society, such as sugar and wood.
Why Should I Start An Agribusiness?
Agriculture is one of Australia’s most important sectors, and as of 2025, the government remains committed to supporting this industry. Recent initiatives have seen investments exceeding $85 million, bolstering innovation and sustainable practices in agribusiness. This continued support underlines the vital role that agribusiness plays in our economy and environmental future.
The agricultural industry not only cultivates essential products but also contributes significantly to Australia’s climate resilience. If you’re considering starting an agribusiness, you will be part of an essential and forward-thinking sector.
How To Set Up An Agribusiness
Having your own agribusiness to manage is exciting, however, it’s crucial to get started the right way. Let’s go through some essential steps for setting up your agribusiness, ensuring you’re legally compliant and ready for success in 2025.
Register Your Agribusiness
First, it’s important to register your agribusiness. All businesses need to be registered and obtain an Australian Business Number (ABN) – this official step can be completed online. The ABN is an 11‐digit identifier used on most official documents, so it’s best to secure it early on.
If you set up your agribusiness under a company structure, you’ll also need to obtain an Australian Company Number (ACN).
Get Funding For Your Agribusiness
You’ll need to consider how you will fund your business, as adequate capital is essential for your operations. Whether it’s through grants, loans or personal funds, planning your financial strategy is key.
Depending on the type of agribusiness you plan to launch, start-up costs may exceed the average due to equipment investments, specialised training or hiring skilled staff. You might think about raising capital or exploring government grants designed to support innovative agricultural practices.
Whichever funding route you choose, having a clear expenditure plan is critical. Many businesses include these financial details in their comprehensive business plan. In fact, if you plan to share your ideas with investors, consider having a Business Plan Non-Disclosure Agreement in place to safeguard your sensitive information.
What Licence Do I Need?
Agriculture is a highly regulated field, so you may require a licence to conduct certain activities. The type of licence needed will depend on the specific operations of your agribusiness.
Chemical licences, land use permits, council approvals and water licences are common requirements. These can vary by locality, so it’s essential to research the specific permissions needed in your area before starting operations.
Plan Your Agribusiness
The agribusiness industry is vast, encompassing multiple sectors from crop production to livestock management. It’s important to plan your business thoroughly by assessing the market, understanding your competition, and determining the best operational model for your niche.
It’s common for entrepreneurs to develop a comprehensive business plan that outlines their strategy, goals, and operational structure. This plan not only serves as a roadmap for your business but also helps in securing funding and managing expectations.
Today’s agribusiness environment is rapidly evolving with new technologies, sustainable practices and digital advancements. Integrating innovations such as precision agriculture, drone monitoring and data analytics can streamline operations and provide a competitive edge. For further guidance on modernising your business, you might consider reviewing our Guide to Changing Your Business Structure for strategic insights tailored to 2025.
Legal Documents For Your Agribusiness
This may not be the most thrilling aspect of running a business, but having the correct legal documentation is essential to protect your interests and ensure smooth operations.
Let’s go through the key legal documents you need.
Employment Contracts
Hiring skilled staff is integral to growing your business, but it’s critical to establish a clear working relationship from the outset. An Employment Contract outlines the terms of employment, including pay, entitlements, leave, working hours, and dispute resolution procedures.
These contracts should align with the National Employment Standards and the modern award applicable to your workers, ensuring compliance and clarity for all parties.
Supply Agreements
If your agribusiness relies on external suppliers for critical materials or products, a Supply Agreement is essential. This contract outlines what is being supplied, delivery schedules, payment terms, warranties and termination conditions, thereby reducing the risk of disputes.
Supply Agreements are particularly important when dealing with overseas suppliers. For further advice on drafting such agreements, consider our resources on Contract Review.
Non-Disclosure Agreements
Privacy and confidentiality are essential in protecting your competitive edge. Non-Disclosure Agreements (NDAs) legally require parties to keep sensitive information confidential, ensuring that business secrets and proprietary data remain secure.
For example, before sharing your business plan or innovative ideas with potential investors, it’s wise to have them sign a Business Plan Non-Disclosure Agreement.
Business Terms and Conditions
Establishing clear Terms and Conditions helps set the rules for how customers and partners interact with your business. This agreement covers the use of your products or services and can minimise potential disputes while protecting your interests.
Having robust terms in place also enables you to control interactions with customers and suppliers, ultimately reducing your business’ liabilities.
Protect Your Agribusiness’ IP
Intellectual property (IP) represents the intangible assets of your business-such as your logo, brand name, or even unique processes-that are essential for maintaining your competitive edge and brand identity.
Protecting your IP helps ensure that your unique business ideas and branding are legally safeguarded. IP Australia is the primary authority for registering IP, where you can secure trade marks, patents and plant breeders’ rights. This registration gives you exclusive legal rights over your IP, preventing others from using it without permission.
For additional brand protection, consider speaking with our experts about registering your trade mark to ensure your business identity remains unique and protected.
Do I Need Insurance?
While most types of insurance are optional, many business owners opt for coverage to provide a safety net if something goes wrong. In 2025, having the right insurance policies in place remains a key part of risk management.
For instance, if you hire staff in NSW, workers compensation insurance is compulsory. Additionally, depending on your operational risks, you may wish to secure public liability, product liability or employers liability insurance.
Assess the areas of highest risk for your agribusiness and review potential policies accordingly to ensure comprehensive coverage.
How Does Liability Work?
Liability refers to your legal responsibility as a business owner to ensure the safety of others interacting with your business. You must take reasonable measures to prevent harm, and if you fail in this duty, you could be held liable and face claims for damages.
To mitigate potential risks, many businesses include limitation of liability clauses in their contracts, thereby capping the amount they might be required to pay in the event of a claim.
Running An International Agribusiness
If you’re contemplating expanding your agribusiness overseas, it’s essential to ensure full legal compliance to avoid international disputes. This includes adapting to local laws in the regions where you operate.
For example, you may need a Privacy Policy tailored to the overseas markets you target. If operating within the EU, the General Data Protection Regulation (GDPR) will apply to your data practices.
Also, keep in mind customs regulations, additional taxes, fees, tariffs, shipping requirements and the need for internationally enforceable contracts when planning your cross-border operations.
Operating internationally demands careful preparation and ongoing legal support to keep your agribusiness compliant and competitive.
What Are My Employer Obligations In Agribusiness?
Agribusinesses are rarely operated solo, as most require a team effort. When you decide to hire staff, it’s important to understand the legal responsibilities that come with employment.
Ensuring your staff receive the correct wages, statutory leave, breaks and safe working conditions is not only good practice – it’s the law. This applies whether employees work on-site or are working remotely.
Moreover, providing a safe physical and mental work environment is critical. Familiarise yourself with guidelines from Safe Work Australia and Fair Work Australia, and ensure you meet your obligations under Work Health and Safety laws.
Agtech Startups In Australia
The agricultural industry is embracing technology with agtech startups increasingly gaining traction. Agtech combines agriculture with digital solutions to improve productivity, optimise yield and enhance sustainability.
For instance, some companies develop systems that enable farmers to monitor crops, manage data, streamline payments and oversee entire paddocks with precision and ease. This integration of tech not only modernises traditional practices but also ensures long-term viability in a competitive market.
If this resonates with your vision, you’ll need to address technology-related legal matters. Well-drafted App Terms and Conditions are critical if you’re offering a digital platform, while a comprehensive Software Development Agreement is necessary if hiring developers.
Here at Sprintlaw, we can help by providing tailored legal documentation to get your agtech startup off to a strong start. For additional insights on merging technology with agriculture, you might also explore our Guide to Starting a Tech Consulting Business, which offers strategies adaptable to the agtech sector.
Need Agribusiness Lawyers?
Starting an agribusiness or launching an agtech endeavour can be incredibly rewarding. It’s crucial to take the right steps and ensure full legal compliance from the outset, setting your business on the path to success in 2025.
To summarise what we’ve discussed:
- An agriculture business involves working with livestock and crops to produce food and essential materials.
- Agribusinesses are a major component of the Australian economy and a worthwhile venture for forward-thinking entrepreneurs.
- Getting started involves a solid business plan, securing funding, and registering your business with the appropriate authorities.
- It’s vital to have the correct legal documentation in place-employment contracts, supply agreements, NDAs and comprehensive terms and conditions.
- If you hire staff, make sure you understand and meet your employer obligations.
- Agtech is rapidly transforming agriculture, so integrating modern digital solutions can set you apart from the competition.
Thankfully, our team of experienced business lawyers at Sprintlaw is here to support you throughout your agribusiness journey. If you’d like a consultation on setting up or expanding your agribusiness, contact us on 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligations chat.
Meet some of our Business Set Up Lawyers
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.