Farm Table says:
This document is intended as an information document for farmers and landowners who are considering long-term land leasing.
This guide opens with the following questions:
Why Landowners (lessors) should consider long-term land leasing?
- Enhanced income tax relief incentives
- Looking for a stable long-term lessee.
- Stable long term income from farm assets
- Providing an opportunity for lessee to improve fertility and land quality.
- Qualify for Capital Gains Tax relief on transfer or sale of the farm
- Successors not yet ready to farm
- No identified Successor
- Retiring from farming.
Why active farmers (lessee) should consider Long-term land leasing?
- Security of tenure
- Enables longer-term planning of the farm business
- May provide opportunities for expansion or change of enterprise
- The land is more productive with investment.
- Provides the opportunity to invest and improve the land.
- Farm buildings may come with the land that will reduce capital investment in housing, slurry and silage storage facilities.
- More cost effective than purchasing land