Leasing vs. Owning for the Small Farmstead - Personal Considerations

 

One of our readers asked if we’d considered leasing land instead of owning it. I posted some thoughts about the financial considerations last week. Here's some thoughts on the personal considerations we're taking into account.

Personal Considerations

 

Flexibility

It’s amazing how much land out there is being farmed on a hand-shake lease agreement. We know of a couple that had to move after a year because the landlord up and decided to sell the property after he had sat on that land his whole life! I'm sure them getting on it and turning it around had nothing to do with it... yeah. Other people have had great outcomes though, so it's really hit or miss, but it's a real risk. 
 
How flexible can you be with your business?
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Leasing vs. Owning for the Small Farmstead - Financial Considerations

Pastures at Vermont Shepherd in Westminster West, VT

One of our readers asked if we’d considered leasing land instead of owning it. When we first started down the mental farming road a little over a year ago that was one of the first things I researched, and I can’t say that we’ve officially decided on either option, but we are leaning heavily. Of course, the answer to everything in farming is "it depends", but that drives me crazy, so here's some thoughts off the top of my head.

Financial Considerations

 

Capital Commitment

Probably one of the biggest considerations in the lease vs. own dilemma is understanding your current capital position. If you are hell-bent on farming but have little capital then you are left with few options besides leasing.

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