Project Funding and Organization

THINGS TO TAKE INTO CONSIDERATION WHEN RENTING FARMLAND

By Albert Makendenge

Renting farm land is a process that requires thoughtful consideration and cannot just be an overnight decision. A variety of factors, listed below, come into play and all contribute to the final outcome or decision:


Affordability – the tenant should be very comfortable with the rental charges of a particular piece of land and should not put a strain on their financial reserves. One should therefore go around to do thorough research on current rental charges in the market.

Location – the land has got to conveniently located to the advantage of the farmer’s goals and targets. For example good climatic conditions, closer to input suppliers, water source and target market. A look into existing infrastructure is also important that is whether the farm comes with any equipment, fencing or buildings.

Size and condition – one would not want overused/overworked soil or land/soil properties that do not suit the farming activity to be done.

Timing – different times during the agricultural season come with differing prices for same piece of land. Farmers have got to keep both their eyes open for when and where prices are favorable.

History of the land – information of experiences from past occupiers provides insights into what exactly was or is happening on the ground and very vital to the final decision to rent or not to rent.

Length of the agreement – tenancy duration obviously has got to fit in with production periods of the farmer. For instance, a maize crop that requires 3 or 4 months to reach full maturity cannot be grown a plot with a renting that only last two months.

Paperwork – proper documentation that clearly states the terms and conditions of the agreement, responsibilities of both the land owner and the tenant

If you are considering renting farmland these are some of the most important factors to consider. What would you say are some of the most important factors to consider when renting farmland?

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