What to know about leasing land for farming?

For those landowners without experience renting or leasing land to a farmer, this narrative is meant to provide you with some of the basics involved with putting together an effective farmland lease agreement that will serve your needs.

Can a life estate be used to transfer farmland?

Life estates are popular for farmland transfers as a life estate is property that an individual owns for their lifetime. They prevent the beneficiary from selling the property that produces income before their death, but these covenants can’t extend beyond that beneficiary’s death.

Can you lease land to a non family member?

To qualify for the income tax incentives, land can only be leased to non-relatives. The only exception to this is the uncle/aunt to favourite nephew/niece relationship – you should check with your solicitor on this.

Can you lease land to a close relative?

You cannot lease your land to a close relative. You should use the Revenue Online Service (ROS) to declare this income on your annual tax return Form 11. For your lease to qualify, it must be: fruit growing. If you lease land to another person you are known as a lessor. Only lessors who are individuals can qualify for the relief.

Can a non-farm sibling rent land from a farmer?

Merle Good recommends long-term rental agreements. This way the farmer can access rented land from non-farm siblings who hold the title. The sibling may choose to never sell their gifted land to the farming sibling. Or they may ask for the fair market value, rather than FFP (Fair Family Price). I don’t see this happening too often today.

How did the four back lot brothers get their land?

The four back-lot brothers used one road that came off the state-maintained highway and bisected Lonnie’s place. Since the four parcels in the back had always been part of the same family’s holdings, no one had ever thought to “do up a paper” providing for legal access over the common road.

How many brothers want to buy my mother’s farm?

Timely Tips: Two brothers want to buy their mother’s farm. Each month in Wallaces Farmer, the Timely Tips panel answers questions sent by readers.

Why do siblings want a piece of farmland?

And the non-farming siblings also seem to have noticed farmland values have increased significantly. So now, they’d like to have a piece of that valuable farmland as part of their inheritance. The older folks in this scenario haven’t planned financially to be able to creatively take care of gifts to the non-farm heirs.