Getting the Most From Your Farm Land Lease




It can be difficult to put a monetary value on your  property, especially when you’re trying to sell it. “How much should I list my home for?” or “What could my car sell for online?” Even pricing items for a garage sale proves difficult for some of us.

Objectively pricing an item that you have put your own money into is an opportunity to get that money back, or hopefully, to MAKE some on your initial investment. But that can be a difficult value to not only determine, but stick to. While you want to be fair to others, its important to be fair to yourself!

Today we are going to dive into objectively pricing rent for farmland leases and how to make your investment work as a landowner to not only maintain but GROW your income. As we get into the mid to late summer season this becomes more relevant, many farmland leases are negotiated for the upcoming crop year during the late summer months.

So here’s a simple question, how do you know if you are getting the proper lease rate for your farm? I’ve heard a few answers to that question throughout my professional career, and answers from landowners can be summed up pretty simply:

(1)  They Rely on the Tenant to determine the value. This farmland owner would not have spent much time negotiating with interested parties to get to the best value. A potential tenant might throw out a value and with a handshake or contract, an agreement is struck. Typically, that value will go unchanged for years to come.

(2) They Maintain the Standard set by their parents or grandparents. Farmland owners and their properties will often involve at least a few generations. Some of the land leases in place written decades before. Why rock the boat?

(3) They don’t change the lease rate of their property because they are simply unaware of the market. That is most often  the case and this owner is missing out on income!

If you need help determining the best lease rate for a new or current tenant, I can help! Throughout my years of experience, I have become an expert in farmland valuations and I can advise a landowner on the best value for their property.

I would love an opportunity to sit down, get to know you, and analyze your farm to see if you were getting a lease rate that is commensurate with the marketplace.

Hopefully, for your sake you are receiving a market rent for your farm…my experience has proven that there are many farms vastly under rented because the landlord just is not informed on the current market.

Please reach out to me at 765-427-5052 for no obligation, no pressure visit.  

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