Much of the agriculture land in Ontario County is rented on a long-term basis.
If you are going to rent farmland from a landowner, or if you are looking for a farmer to rent your land,
1) determine a rent that is fair for both the landowner and the renting farmer
2) plan on getting things in writing
3) let your insurer know you have a rental agreement on land they insure.
Why rent farmland from a neighbor?
• Spread your fixed costs over more acres
• Utilize land you do not have the cash to buy
• Keep your farm cash flow positive by renting instead of mortgaging
• Transition the farm size gradually
• Shift your farm investments into better livestock, structures, or equipment and machines rather than tying it up in real estate
Why rent your land to a farmer?
• Maintain the benefits of having active farm businesses in the neighborhood
• Keep your land options open for time being
• Potentially reduce your property taxes by having the land assessed at agriculture value, rather than developed value
• Be a good neighbor to a local farmer
“Going rates” for farmland rental
Like renting an apartment or a car, the rate depends on the condition and location of the item to be rented. Some fields are of very high quality and are close to a market or processor, so the rates are higher. Other land is so-so and not worth a high rent. Out of neighborliness and local traditions, a lot farmland is rented for nothing. So it really depends on the specific situation.
Last updated August 8, 2018