How to Rent a Farm

The answer to the question "how to rent a farm" depends on which side of the equation that you intend to be on. If you are the person with the farm to rent, you have questions about how much to charge, how much the farm is worth to you and how to find the best, most reliable tenant for your property. On the other hand, if you are the one looking to rent, you need to make sure that the amount being asked for is affordable for your budget, as well as fair for the actual property.

Placing your farm property for rent is almost like leaving your children with a sitter for the first time. You have to trust that the tenant will not destroy your buildings and poison your soil, especially if you might decide to return to farm that land yourself some day. Making sure that you thoroughly check potential renters out is important, but so is making sure that everything is agreed upon in writing. I repeat, in writing. A legally binding contract can make sure that you avoid any type of court proceedings should a problem arise.

To get a basic idea of how much rent to charge, evaluate the value of the property, as well as the value of properties all around you. Are there other farms in the area that are rented also? Unless there are extra special amenities on your land, then you cannot expect to ask more than the what is being paid in the area. If you have not had a recent appraisal for tax purposes, it might be a good idea to do so, or at the very least speak to a local extension agent and get a feel for what the local market will bear.

Once you have an idea of how much a basic rent might be, you can evaluate the value of buildings and other fixtures on the land. Will you also be renting farm equipment in this deal? Insure the items that you rent, and again, make sure that every detail is included in the rental contract. You don't want a nasty surprise with expensive machinery at the end of the rental period.

If you are the one renting the farm, make sure that you get the best deal that you can. Getting your heart set on one particular farm in an area should not tie you to rental costs that are beyond your budget and far more than the properties actual value. Do not agree to a rent without trying to haggle and without doing a thorough search of the area's real estate market. Learning how to rent a farm from either side of the table can seem daunting, but it simply takes some common sense and some legwork before the actual signing of papers takes place.