Farmland Access Basics – Terra Brockman It is not too soon to provide by every possible means that as few as possible shall be without a little portion of land. The small landholders are the most precious part of a state. --Thomas Jefferson to James Madison, October, 1785 There are many ways to access farmland. If you know your farming goals and needs, do your homework, research your options, and then use personal contacts and online resources, you will find land that is right for you! 1. KNOW thyself (and prepare thyself) Think about yourself and your core values: Who are you? What do you want and need? Write out a clear statement of your personal values and goals to guide you along the way. You may also want to sketch a picture of your ideal farm 10 years from now. Share your drawing and statement with your family, friends, and/or business partners. Return to it regularly to discuss, define, and refine your values and goals. Think about the land tenure model, renting or owning, that best fits your personal situation. Make a list of the pros/cons of each, based on your present finances, personal risk tolerance, and other factors. Revisit this list as your farmland search progresses, as you will come up with more pros/cons as you explore options in greater detail. Develop your farm business plan. As with any entrepreneurial endeavor, a well-researched business plan is crucial. Set yourself a timeline to find your farm. The process may take a year or more. Be prepared for questions that land owners are likely to ask. They may ask about your farming background and experience, the crops and/or animals you intend to raise, and your practices. Be open and flexible as you seek your farm. There are many paths to land tenure, and what fits in your first few years of farming may evolve into something different. Many new farmers start as renters, and may move to a longterm (even lifetime) lease, or move on to purchase a farm. Ask Yourself: a. What do I absolutely need? b. What is desirable, but not necessary? c. What would be nice, but is optional? 2. EXPLORE: FINDING FARM PROSPECTS Get Personal! Let everyone in your personal network know you are looking for a farm. Start with friends, family, and colleagues, and build from there. Keep a list like this on your desk or refrigerator, and continually add to it: People I have contacted _____________________________ People I will contact _________________________________ One-on-one relationships -- Get to know farmers near you, and let them know you are looking for an opportunity to rent or purchase farmland. Often a farmer will have a small parcel of land across a creek or in a low-lying area that is almost too much trouble to get to with big machinery. They may be willing to rent such parcels to you. Go beyond your personal network by contacting local veterinarians, crop consultants, farm suppliers, auctioneers and others . . . the more people you tell about your farm search, the more likely you’ll find the farm you want. Seeing and seeking: As you drive around, you may see a farmstead that seems to have no one living there. You can inquire with neighbors as to the owner, or go to the county courthouse, find the parcel number in a county plat book, and ask the County Clerk to use the parcel number to look up the owner. Write the owner a letter or call them, letting them know who you are and what you’d like to do with the land if they are interested in renting it out. Emphasize your desire to steward the land into the future, and ask if they would be willing to meet in person to discuss options. Use the power of the Internet. Learn about and register with online farm linking programs such as The Land Connection’s classifieds http://thelandconnection.org/farmland/farmland-classifieds/need-land and PFI’s Find A Farmer http://www.practicalfarmers.org/findafarmer/ Keep a list: Sites I have registered or listed on ____________________________________________________ Sites I will register/list on ___________________________________________________________ Investigate Land Trusts. Talk with local land trusts to see if they own or hold easements on properties that may include farmland. You can find land trusts near you on the Land Trust Alliance website, LTA.org Land trusts I have contacted _______________________________________________________ Land trusts I will contact __________________________________________________________ Contact conservation buyers, people who value land protection and who often partner with land trusts to purchase and hold land. They may buy a parcel and then offer long-term leases and possibly land ownership options. To find conservation buyers, make inquiries with local land trusts, then set up a meeting with the potential buyer to talk about your farming plans. If the conversation goes well, ask the person if they might be willing to purchase farmland and hold it long-term, getting some return on their investment through your rent. If there are multiple investors, they may form an LLC for easier management of the farm property. Learn about Farmer Networks and Farm Incubators near you. Networks such as CRAFT and Central Illinois Sustainable Farming Network (www.cisfn.org) have e-newsletters and list-servs where members can exchange information about farmland and other topics. New farm incubators are currently under development near Peoria, Rantoul, and Champaign. Contact Farm Service Providers such as University Extension personnel, county conservation districts, USDA NRCS personnel and others. These providers often have programs related to land acquisition and know of local farms for rent or sale. Contact agricultural real estate agents in your area. Contact religious entities such as churches, convents, seminaries and retreat facilities. These entities often own farmland, and have stewardship values that align with yours. Many are also active in social justice and food access issues, and will be receptive to having a farmer use their land to provide healthy food to the community. Some private colleges also own farmland and may be open to renting it to you. Explore Cooperative farm ownership to create an intentional or co-housing farm community – see Agriburbia, Agritopia, Serenbe. These communities often have a number of farmers engaged in complementary enterprises. 3. ACT: TO OWN OR NOT TO OWN . . . There are many paths to land tenure, and you’ll need to find the one that fits your personal values, family situation, business plan, and marketing needs. Don’t stress out too much, though. This isn’t a one-time, all-or-nothing decision, as you can move from one land tenure option to another as your circumstances change. FARM PURCHASE OPTIONS to explore and evaluate: Consider these ways you might OWN farmland, along with the main pros/cons. Discuss with your family, business partner, and/or financial advisor, then circle the ones that are possible for you. o o o o Through inheriting, or as a gift during the owner’s lifetime Through purchase— outright, if you have a nest egg through regular bank financing to obtain a mortgage via a loan from family/friends, with or without equity position through USDA FSA, Farm Credit, or other loan arrangement fee title purchase with seller financing (contract for deed) -- a situation where the new owner takes possession of the land and makes payments directly to the previous owner fee title purchase with an agricultural easement that reduces the price of the land because it restrict the use to agriculture only. Through a shared equity model, which allows for a gradual transfer of your money and the owner’s farmland, with small, regular cash outlays for the renter, and gradual capital gains for the owner. As the new farm gets more profitable, you can buy more land. Through owning a house, and only a small amount of land around the house, then leasing other land, buildings, livestock, etc from the land owner PROS of Owning: psychological benefits build collateral maximum security and control legacy (“they ain’t making any more of it”) Other _____________ FARM LEASE OPTIONS to explore and evaluate: CONS of Owning: ties up capital you might need for farming huge commitment other _______________________ A good lease will have equitable and clear division of rights and responsibilities between owner and farmer, plus a trigger for lease review, and exit provisions Cash lease, flexible cash lease (fixed baseline rent and % of returns), or crop share lease Lease with option to purchase, or very long term (99 year) lease (great security) Ground lease – tenant leases the land only, and owns the improvements (e.g. house, barn, fencing, etc) When lease terminated, improvements sold to next tenant or back to landowner. Examples: Indian Line Farm, Caretaker Farm Transfer of farming rights (you rent the right to farm a property) Pros - gives you a lot of flexibility and options, especially in terms of putting more money into the farming operations, and also to try out a location, an enterprise, a market situation Cons – may not have adequate security, don’t have collateral, can’t build equity, don’t feel ownership, doesn’t fit image of “farmer” As you search for farmland, be sure to use the Classifieds section of The Land Connection’s website, http://thelandconnection.org/farmland/farmland-classifieds or contact us if you’d like personal assistance. Terra Brockman, terra@thelandconnection.org 217-840-2128 office If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours. – Henry David Thoreau Resources: The Land Connection http://thelandconnection.org FarmLasts project http://www.farmlasts.org/ Farmers guide to securing land http://californiafarmlink.org Holding Ground – leases and guide to tenure – http://www.smallfarm.org/main/for_new_farmers/resources_by_topic/land/ Equity Trust – ground lease and easements -- http://www.equitytrust.org/ Greenhorns http://www.thegreenhorns.net/ New England Small Farm Institute http://www.smallfarm.org/ Lease Resources Finding Land to Farm: Six ways to Secure Farmland online at http://www.attra.org/attra-pub/PDF/finding.pdf Lease Agreement Guide for Landowners & Farmers Managing Landlord-Tenant Relationships: A Strategic Perspective Farm Rental Agreement Checklist Farmland Tenure and Leasing Sample Short-term Lease Sample Long-term Lease on Public Land Sample Multi-year Lease Family Farm Series Publications: Farm Management All online at http://landforgood.org/resources/toolbox/toolbox-farm-seekers/ Holding Ground: A Guide to Northeast Farmland Tenure and Stewardship. Available for purchase at http://www.smallfarm.org/bookstore/ A New Lease on Farmland online at www.smallisbeautiful.org