If you own farmland but are not using it, you may be able to make a profit by leasing it out. This can be a great way to hold onto land until it’s worth enough to make a profit or a way to help the economy. By making the land available to farmers that otherwise could not afford to
buy the land, you give access to the locals to quality produce.
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Leasing out your farmland is a great way to make the best use of your land, but first you must know how to do it right.
Figure Out the Best Use
First, how much land do you have to lease? Is it enough for a farmer to use it for farmland? Is there room for crops and growth? If so, you can market your land to farmers. Don’t forget the ranchers that may want to lease your land to grow feed for their animals. The uses of large amounts of land are endless.
What if you don’t have a lot of land, though? Don’t count yourself out just yet. You just have to get creative. Look around the land – what surrounds it? Are their homes owned by individual homeowners? Even if the land is surrounded by land owned by others, you may have an opportunity here. Talk with the adjacent land or homeowners and see if they have a use for the land. They may be tickled silly to have access to the adjacent land and be willing to pay a pretty penny for the lease to do so.
Uses Other Than Farming
What if your land just isn’t suited for farming? Are you stuck with it until you find a willing buyer? Luckily, there may be other uses for it, but you have to think outside of the box. Consider any of the following for your land:
- Hunting – Hunters are often looking for land they can lease and have licensed for hunting. If your land is vast, but not suited for farming, this could be a good alternative.
- Storage – You probably don’t want to see your land sit idle, but if you have a willing renter that will use it to store things like RVs and boats, it’s money in your pocket while you wait for the value of the land to appreciate.
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Things to Know About Renting Farmland
If you are a new tenant, you may not realize the things you can and cannot do on your farmland. Here’s a brief synopsis of what you can expect:
- You cannot tell the farmer or renter what to do with the land. They rent it and as long as they operate according to your
lease agreement, you cannot have a say in what they do.
- You cannot visit the land as you wish. The terms should be spelled out in the lease regarding your rights to the land. If you want ‘visitation rights,’ make sure it’s spelled out in the lease.
- You cannot raise the rent during a lease period. Your state has specific dates when you can set the rent and when you can change it. You must know these dates and abide by them.
- If you sell the land, the lease stays in effect until it’s termination date. Make sure the buyer is aware of any leases on the land to prevent issues during the sale.
Leasing farmland can be a great way to make money on land that would otherwise just sit there. Make sure you do your homework, understand your rights, and maximize the use of the land in order to make the most of the transaction.
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