Farm land deserves the same careful consideration, lease agreement, and rental duties as any other type of land but too often, according to Ohio State University, this land is rented informally. Get the most value for your farm land by determining what a fair rate is for your geographic location, then ensure that both you and your tenant are protected by drawing up a comprehensive lease agreement.
Check the cropland rent by state, available from the U.S. Department of Agriculture website (nass.usda.gov). You'll need to determine how much to rent out your farm land for, and this will help you see recent prices for your geographic area per acre of land.
Calculate the average rental price. Multiply the number of acres you intend to rent by the average rental price for your state to get an idea of a fair rental price for your farm land.
Raise or lower the price depending on demand. If you live in an area where you'll have to work hard to find a renter, keep the price at or below that average. If you expect several bidders, raise the number to obtain a higher profit.
List your farm land for rent in your local community newspaper. Also list it in county newspapers or big-city newspapers if you want to draw a larger audience.
Post your farm rental on Agriseek. This is an online marketplace for the farm community, so it can help you reach a larger audience.
Prepare a rental agreement. If you've never written a rental agreement, Ohio State University's Farm Rental Checklist can get you started. Your rental agreement should cover landlord access, tenant use of unrented farm land and buildings, who is responsible for landscaping, whether the farm land can be treated with pesticides, and how rent will be paid.
Wait for prospective renters to contact you. Show the renter your property and answer any questions she has. If the renter wishes to proceed, show her your rental agreement. Then discuss the agreement, making sure everything is agreed-upon and understood in full before you enter into an agreement. Your tenant may wish to make some changes to the agreement.
Conclude the rental process by accepting the rental offer. Have your tenant provide a deposit and sign the rental agreement.
If you're having trouble renting out your property, lower the rental price to attract a wider audience.
Tips and warnings
- If you're having trouble renting out your property, lower the rental price to attract a wider audience.