How to Find Farmland Tenants in 2023
Mar 12, 2023
If you’ve got farmland that is lying fallow, you’re missing an incredible opportunity to generate passive income—through a cash rental or crop share agreement.
Of course, that income is only passive if you have a quality farmer managing that land. Which raises the question: how do you find great tenants in 2023?
Is it time to find a new farmer?
Let’s start by asking the question: is it time to find a new tenant farmer?
If you don’t already have one, the answer is: yes! After all, your land is just sitting there doing nothing for you (aside from appreciating in value).
READ MORE: Here are some reasons why farmland is a good investment for 2023.
If you already have a tenant, then this question becomes more complicated. A good way to answer it is to take a step back and look at your entire operation from a big-picture perspective:
Do you have clear goals and expectations for your farmer? It’s impossible to evaluate a farmer’s job if you don’t know what “good” looks like. Take some time to decide what you want your land to accomplish for you—-even if that’s changed from when you first brought the farmer on.
Is the farmer meeting those goals? Once you know your goals, find out if the farmer is meeting them. Note that if you haven’t communicated these expectations or put them in your lease agreement then it’s unfair to expect them of your farmer.
If not, can you fix the problem? Finding a new tenant farmer is a lot of work. If you can work with your current farmer to fix the problem, then it’s a win-win for everyone.
If not, can you break the lease? Different states are tricky when it comes to breaking a farmland lease. Make sure to consult with your lawyer to figure out the rules for your state and county.
If you’ve found that you can’t fix the problem and your lease is about to lapse, now is the perfect time to try and find a new farmland tenant.
Why your current farmer networks may not be enough
It’s no secret that finding new farmers is becoming more difficult as the number of farmers in the U.S. is on the decline. Not only that, but rural brain drain makes it challenging for agricultural communities to maintain their pool of ag talent.
As such, you may have a hard time finding quality farmers within your traditional circles. Striking up deals at church or over coffee just isn’t what it used to be.
That said, ag universities and extension programs are highly active, turning out quality graduates who are highly motivated to get started. The question is: how do you connect with this pool of graduates?
The key is to use modern applications to do so. Platforms like Common Ground are specifically designed to connect landlords with eager farmers who can help take your land to the next level.
How to find a good farmer tenant
The one problem with sourcing a farmer tenant on an online platform like Common Ground: how can you tell if one is high quality? While the platform will certainly screen out egregiously bad candidates, you still need to narrow it down.
After all, you’re not just looking for a good farmer. You’re looking for one that best fits your operational needs.
The trick is to know what you’re looking for. Remember those goals we mentioned earlier? Those are going to be your North Star when making these decisions:
Increase production and yield
Employ double cropping and other modern practices
Enhance the land’s sustainability
Maintain open lines of communication with the landowner
As such, here are some tips to find reputable farmers.
Be selective in your sourcing
Whether you’re using Common Ground or another resource to find new farmers, make sure that you have a source that you can trust. One of the biggest areas where landowners go wrong is considering anyone and everyone that comes along.
When you can trust that the candidates you’re reviewing are top notch, you can avoid wasting precious time later in the process.
Focus the interview on questions that matter
Skip the stock interview questions. In fact, maybe it’s a good idea just to skip the interview altogether. After all, you’re not hiring the farmer for a job. Ideally, you’re taking them on as a partner in the operation.
So focus on the questions that matter most. Ask them about their previous experiences. Get them talking about their approach to farming, and what areas they want to prioritize. See if you can figure out whether they’re going to be open and communicative. These are all important factors in determining whether this person will be a good partner for you.
Check references & do due diligence
Agriculture is a reputation industry. Make sure to get in touch with references and other mutual contacts who you trust. Sometimes you can avoid costly mistakes with a phone call.
What should you look for in a potential farmer tenant?
Although different landowners have different goals, there are some qualities that every good farmer tenant should have. Here are some to keep an eye out for.
Solid track record and reputation
This is critical, especially if you’re hiring someone from outside the community. Check to see their success record, including previous crops managed, yields, and the practices they’ve used in the past. This is the best indicator as to how they’re going to handle your operation.
Attention to detail
There are a lot of moving pieces in a farm operation. But a quality farmer won’t let that get in the way of attention to detail. From the treatments they use, their planting practices, even keeping an eye on the weather—your farmer should have a meticulous eye.
If there are specific things that you want your farmer to do (or not do), make sure to put them in the agreement. Then, if they execute those well, then you’ll know they’re minding the details.
Eye for improvement
Remember: you’re bringing on a farmer to be a partner in your operation. As such, they shouldn’t just be an order-taker, but contribute to the improvement and success of the operation. While you certainly don’t want them to make major changes without your input, it’s important that they be active participants. They should make the operation better on the whole.
Clear, open communication
At the end of the day, it’s your land. You need to be in the know as to what’s happening with it. So as you’re looking for a farmer tenant, keep an eye on how well they communicate with you. It’s a good indicator of how they’ll communicate once the lease is signed.
To get started looking for a farmland tenant, learn more about CommonGround here.