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Estoy de Acuerdo / Eu concordo / I agree
Many NC FarmLink users choose to lease land rather than sell or purchase farmland. According to the 2022 USDA Ag Census, NC farmers leased 3,303,542 acres from other landowners.
Written leases are strongly recommended because they provide security to both the landowner and the farmer. A written lease makes the terms of the lease clear and defensible in the event of a land transfer or farm sale. Leases also act as good communication tool that makes sure the landowner and farmer are on the same page.
In addition, a lease will be helpful in the event of a liability situation or property insurance claim. Check with your insurance agent to find out how your current insurance policy can be modified to include the farm lease and whether the lease document will be acceptable within the terms of your policy. You may also request to be added to the farmer’s insurance policy as “additional insured.” This will help cover you if a third party is involved in damage or liability. More info available at Liability and Insurance in a Farm Lease (Land for Good).
Below are some lease templates that you download and adapt to fit your situation. You can also find other templates and information on leases at the NC FarmLaw website. Be advised that any lease over three years must be recorded with your local county Register of Deeds to protect the farmer’s right to lease the land if it is ever sold or transferred to a new owner.
Farm Transition and Succession (Andrew Branan, NC State University)
Written leases are strongly recommended because they provide security to both the landowner and the farmer. A written lease makes the terms of the lease clear
and defensible in the event of a land transfer or farm sale.
In addition, a lease will be helpful in the event of a liability situation or property insurance claim. Check with your insurance agent to find out how your current insurance policy can be modified to include the farm lease and whether the lease document will be acceptable within the terms of your policy. You may also request to be added to the farmer’s insurance policy as “additional insured.” This will help cover you if a third party is involved in damage or liability. More info available at Liability and Insurance in a Farm Lease (Land for Good).
Determining a lease or rental rate that is fair to the landowner and the farmer results from transparent and informed communication about the type of land, type of soil, type of operation, and inclusion of buildings and infrastructure. Farm maintenance and operation considerations can also inform a fair lease rate. Farm advisors, area farmers, and Cooperative Extension agents may also be contacted for what current rates are for the soils and farmland demand in your area.
Annual NC farmland rental rates can vary widely from $13 to $260 per acre for cropland, with most pastureland rent from $15 to $50 per acre. In some situations, landowners may offer a no-cost lease to farmers who agree to keep the land in production. Landowners who rent their land to farms may be able to maintain Present Use Value reduced tax rate with documentation that the farmer that rents the land produces at least $3,000 in product value over a three year period.
When considering rental rate, consider the following items:
There are online resources that may be helpful to determine a cash rent. Both resources are objective data and are not to be used as the only information when developing a rental rate.