Leasing Land

You will need to know:

• how much your enterprise can afford to pay for land.

• what you need the land to do.

To give you a rough idea…..

….The investors need roughly a 10% return on the land. So if a farm costs $5000/ac then we should be able to lease it for $500/ac per year.

That is only a rough guide and only applies if you are leasing a reasonably large patch of ground. Smaller patches will cost a bit more, while shed sites or just an acre or two will be at bit more again. 

Remember that the investors are wanting to help us. It has to make financial sense to them but they want an investment that is going to make a positive difference to you. This is a collaborative effort between farmers and investors. If you have an enterprise that needs land or a work space have a chat with us and we will work with you and the investors to see if we can find a solution.

A Pathway to Ownership

As part of the positive impact the investors are looking to make they are not just offering secure and affordable access to land but they are also offering a pathway to ownership. Co-farmers have the option of buying shares in the company that owns the farm. They can become co-shareholders with the investors.

The idea is to create an equitable relationship between those enabling the creation of value (the investors) and those actually creating the value (the co-farmers).