Renting land over buying it outright can be a winning strategy for any business, including your agricultural operation. Still, you must choose your land carefully to avoid pitfalls undermining your business for years. That’s not difficult to do if you know what considerations to keep in mind during your search.
There are 5 things you must consider when renting agricultural land. That includes its accessibility to roads and highways, soil type and quality, and the reliability of its water and power supplies. On top of that, consider the land’s history and the surrounding community affected by your operations.
This guide will dive deeper into these top 5 considerations when choosing the ideal land for your business. By the end, you’ll be equipped to compare different options and make the best one for your needs!
Top 5 Things To Consider When Renting Agricultural Land
Finding the most suitable land plot to rent can make or break your agricultural business. That’s why you must patiently perform your due diligence before committing to a long-term rental agreement that’s too challenging to back out of.
Here are the 5 things you must consider before renting a plot of land for agricultural use:
1. Accessibility
The first thing to consider when evaluating your land rental options is their accessibility. Simply put, the best options are the ones that are in close proximity to roads, highways, and other transportation infrastructure, regardless of your reasons for renting the land.
Accessibility is crucial because agricultural operations require a constant supply of input, like fertiliser, to function. Similarly, these operations produce outputs that must reach the next step in the supply chain, wherever that might be.
The cost to transport all of the above, including any necessary equipment, becomes significantly lower when your land is accessible.
2. Soil Type And Quality
The next consideration surrounds the soil, particularly its type and quality.
Firstly, you must have a strong understanding of the crops you plan on planting there. That’s because some soils are more suitable than others for particular crops. Having the right match will help ensure you get your expected crop yields.
On top of that, you should also look closely at other characteristics of your potential cropland, like its drainage.
Doing so ensures the land can meet your needs before you commit and sign a rental agreement.
3. Water And Electricity
Earlier, you read that the land you rent should be near transportation infrastructure like roads and highways. Besides that, you must ensure that the land has access to water and electricity infrastructure.
Water and power are two things your agricultural operations can’t function without.
For example, you’ll require a sufficient and reliable water supply for crop irrigation and to fulfil your livestock needs. Renting land in an area with intermittent water supply will only undermine your business in the long run.
Similarly, choosing land in an area with a reliable electricity supply is necessary for your operations' overall efficiency and productivity.
You must have enough power for basic things like lights and fans. However, that power supply becomes even more crucial if you plan on integrating your farm operations using technology.
After all, high-tech solutions are useless if you can’t keep them powered.
4. Land History
Suppose you find a plot of land that meets all the requirements described above. Don’t rush into signing any agreements just yet, as there are a couple more things you’ll want to know about.
Remember: even though you’re only renting the land and not purchasing it, you’re still about to lock yourself into a long-term commitment costing you significant amounts of money.
So, try to learn about what happened to the land before you found it. Not only will doing that help you avoid potential issues, but it could also enable you to identify opportunities you didn’t know were there.
Here are some things to look out for when it comes to agricultural land:
Fertility and soil issues: Start by looking for any signs suggesting soil and fertility issues. For example, suppose another agricultural business rented the same land but didn’t get its desired output. In that case, it’s good to ask around and find out if the soil was to blame.
Pest and disease issues: Similarly, do a bit of investigation to determine if there is any history of pest or disease issues on that land. Sure, you can resolve these issues if they bother your operations. Still, you must be aware of these issues to plan how to deal with them later.
Local community issues: Lastly, ask around to find out if there were any issues with the surrounding community. Perhaps the previous renter didn’t build a positive relationship with the local community. An issue like that could undermine your operations in that location.
As you can see, things like rental price and land quality aren’t the only ones you must consider when choosing a location. You’ll only have the complete picture once you understand what happened on that land before you potentially use it for your business.
5. Surrounding Community
Last but certainly not least is the surrounding community. Unfortunately, some agricultural operations overlook the people living nearby who will be affected by them directly or indirectly.
As you might already know, the inputs necessary for an agricultural business can impact the local environment.
Chemical runoff can pollute water sources, while fertiliser and livestock generate unpleasant odours. To make matters worse, the heavy machinery you rely on also creates noise pollution.
These things will quickly turn your neighbours in the area against you.
Conversely, understanding the surrounding community can work to your benefit. Choosing the right land to rent can be mutually beneficial. For instance, you could meet your manpower needs by recruiting people from nearby areas.
Final Thoughts
Choosing to rent land to set up your agriculture operations is a smart move. However, you must consider several important factors before deciding on which plot of land you want. They include accessibility, soil quality and the availability of water and power.
The best way you can find available land to rent is by checking out TanahSewa.com. Browse the listings and compare them based on the considerations above to find the best one for your agricultural business!
Ray Hasbollah
Content Strategist
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