There are a number of options available to you if you want make money with 20 acres of farm land. Depending on the course you elect to take, some of these opportunities prove to be labour intensive. If you are more interested in finding a way to make money on 20 acres of farm land with the least investment of your time, you need to consider entering into a farm lease agreement with a tenant. A farm lease agreement can prove to be a reliable, as well as cost and time effective way, of profiting from your ownership of rural property.
- Skill level:
- Moderately Challenging
Things you need
- Farm lease agreement
Market the 20 acres of farm land for lease. Use a variety of promotional tools, including simply posting "for rent" signs at the property as well as high tech resources like Internet real estate sites.
Obtain a standard form farm land lease agreement. These forms generally are available at office supply stores. Additionally, if you desire to make the additional investment, retain an attorney to draft a farm land lease agreement for you.
Decide how you want to be paid through the lease agreement. With farm land lease agreements you have a few options. You can charge a monthly flat rate for rent. You can take rent in the form of a percentage of crops harvested on the premises (assuming crops are grown on the property by the tenant). Finally, you can draft a lease agreement that incorporates both a flat monthly rate and a percentage of crops for rent.
Negotiate for the longest lease term possible. Generally speaking, you benefit from having a longer lease term in regard to 20 acres of farm land. By obtaining a longer lease term you avoid having to look for a new tenant in the short term.
Set forth in the lease agreement the intended use of the property during the lease term.
Keep mineral rights to the property. Do not include mineral rights to the premises as part of the lease agreement. Mineral rights are those involving assets underground, including oil and gas.
Tips and warnings
- Consider engaging the assistance of an attorney to draft a farm land lease agreement for you. Although the state and local bar associations cannot recommend a specific attorney to represent you in this regard, these organisations do maintain directories of attorneys in different practice areas. Contact information for these groups is available from the American Bar Association:
- American Bar Association
- 321 North Clark Street
- Chicago, IL 60654-7598
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