Agricultural Lease

[kpkot]

A local farmer approached my brother about leasing his 25 acre field. They mix crops-corn, beans, oats, wheat, etc. My brother wasn't sure what a fair price would be, and told the farmer he would get back to him with a decision.

Anyone know what the average price per acre goes for? This is in Genesee county. Field previously was a hay field prior to my brother owning it. He maintains it with a brushog currently.

[MACHINIST]

For goose or turkey hunting??If its for deer and there isnt any woods I wouldnt spend a dime

[Jason118]

I think the farmer wants to lease the land from his brother to grow crops? Try posting in land management forum. Could open up some hunting privileges to land the farmers owns;-)

[First-light]

I get 20 bucks an acre. I'm in Steuben county and some say I could get more but the farmer is a great guy. He will do favors if asked and puts back into the soil what he takes out so my land isn't getting raped. Remember the best part about doing this is your property will go into Ag status on your tax bill. This will eliminate a decent amount of taxes on the property.

[kpkot]

I think the farmer wants to lease the land from his brother to grow crops? Try posting in land management forum. Could open up some hunting privileges to land the farmers owns;-)

Yes it is for crops not hunting

[CharlieNY]

The general rule of thumb is to charge the farmer for the total property taxes per acre. Therefore, the farmer would be charged the total property taxes to cover the 25 acres that he will farm. I hope this helps you out.

[HectorBuckBuster]

I my area there has been a huge increase in the farm rental rates.As the Amish as been buying farm land, and no pretty much and land up. The have been paying $3000-$4300 a acre now.Rates also depends on the type of soils you have. If he signs a 5 year lease, then he can get a Ag Assessment reduction on his property taxes, but this needs to be filed my March 1st, and also the farmer has to have a gross income of over $10,000 in a calendar year.

 

Also  someone said charge by the total property taxes. Sorry that does not make good business sense, as the money you get coming in is considered income and you will be taxed on it.  I own 200 acres and lease the land out and treat it as a business. The land should be able to make you some money. I get $70 per acre now. I also have several other farmers that have approached me willing to take it over anytime if I every want to lease it to someone else.Also with have 200 acres in one spot,also helps because it cuts the farmers cost down on traveling, vs them farming a 25 acres in on spot, 50 in another and so on. Also my land has very good soil, and produces good yields.

 

[chas0218]

I get 20 bucks an acre. I'm in Steuben county and some say I could get more but the farmer is a great guy. He will do favors if asked and puts back into the soil what he takes out so my land isn't getting raped. Remember the best part about doing this is your property will go into Ag status on your tax bill. This will eliminate a decent amount of taxes on the property.

This is key make sure they rotate crops or your land will become useless later and need a lot of work. We lease around 80 acres in upstate all flat and get about $40 an acre but is good land. He has been leasing for around 15 years and takes good care of the fields.

 

EDIT: This is in Wayne County.

Edited January 12, 2016 by chas0218

[Nomad]

We get over what our taxes are, and what we get seems on the low side for the area, but we rent to relatives and I hunt their land, where they mow, bush hog let me build huts and so on.

Ask around what others get. Many factors come into play, soil, Size and shape of fields, access , drainage , how far from his other fields and demand for land in the area ( perhaps the biggest factor )

I'm know folks that get from $30 to $ 60 per acre, but this is in an area where land gets sold before it ever gets " listed ".

[kpkot]

I my area there has been a huge increase in the farm rental rates.As the Amish as been buying farm land, and no pretty much and land up. The have been paying $3000-$4300 a acre now.Rates also depends on the type of soils you have. If he signs a 5 year lease, then he can get a Ag Assessment reduction on his property taxes, but this needs to be filed my March 1st,

Thanks everyone very very helpful. So for the tax reduction it has to be a five year lease?

[Buckmaster7600]

I pay 30$ an acre for hay fields I don't do any tilling so I'm guessing that would be more.

[HectorBuckBuster]

Yes, to get Ag Assessment you need a 5 year lease (minimum)and the farmer has to have over $10,000 a year in gross income.You need to file form RP-305 with your local assessor. Also you need to get soil group work sheets from the soil department in your area. I think if you get a lease signed and the paper work in by March 1st you can get the AG Assessment started on your 2016-2017 Schools taxes.

 

 

https://www.tax.ny.gov/research/property/assess/valuation/agindex.htm