If you own a large tract of farmland, you may wonder how you can increase your income. While you might not be ready to sell your farm, you can still get money for the use of your land. There are many potential benefits to leasing your farmland, making it a lucrative way to put money back into your pocket. You can choose to lease all or a portion of your property for multiple uses, depending on the type of land you own.
Uses for Leased Farmland
You can choose to lease your farmland for a variety of uses. The most obvious option is to lease a portion of your property to be used for agriculture. Current crop prices may dictate the types of crops that will be most profitable. Many different crops can be grown on different areas of land. Another use for farmland is for raising animals. You may include the use of a barn or other structures which will bring additional income. Some types of land are ideal for hunting. Hunting is a great way to control unwanted animals on your property and make money at the same time. You can rent out a portion of your land for hunting wildlife.
Benefits of Leasing Farmland
Added income is the most important benefit that you will gain from leasing your farmland. Leasing allows you to effectively improve your income without having to do any additional work. Some leases even provide you with a portion of the sale price of crops that the tenant grows on your land. Leasing your land for hunting will help you keep animals off your property. Leasing your farmland will offset some of the expenses that you have without having to sell your land. You can reduce the size of land you utilize for your own farm and get extra money from renting the remainder of your property.
Lease Agreements
Lease agreements can vary depending on the use of the land. For example, a lease for hunting might provide for a yearly fee while a lease for crops might have a monthly fee. It is best to review the current farmland values before you determine the price you will charge for your land. The price should reflect the land use as well as the going rate for similar property in your area. If you want to include the use of buildings, features, and equipment, you can add to the rent price. Be sure to address the maintenance and use of your land and equipment as well as access onto the property and upkeep of the fencing.
Farmland lease agreements can be complex, so it is best to have an experienced attorney draft your contract. You want to make sure that you protect your interests and get the best possible income from the land. At the same time, you need to make sure that you do not make yourself vulnerable to possible extra fees such as for repairs. For this reason, you need to ensure that the lease covers all of your exposure while providing you with additional income. To learn more about leasing your farmland, contact our legal team at Moen Sheehan Meyer, Ltd. for a phone consultation. Call 608-784-8310 or email jhall@msm-law.com.