FarmlandFinder offers online farm sale-leaseback program
“Talking with farmers, there is a contagious curiosity to find ways to unlock equity that’s tied up in their land without giving up control of the property or taking on additional debt,” says Steven Brockshus, founder and CEO of FarmlandFinder. “Through our private investment platform, a farmer can apply for a sale-leaseback. If they qualify, they’ll get connected with a qualified investor who partners with them to help unlock equity.”
Here’s how it works. The land is acquired from the farm owner-operator by an investor who then leases it back to the owner-operator on a long-term basis. This program, which can be done in a few simple steps, provides liquidity to the farmer while helping him or her maintain ongoing operational control of the land.
While sale-leasebacks in farmland aren’t new, FarmlandFinder is making them readily accessible to farmers who find themselves in a variety of different situations.
“It could be a good program for a retiring farmer whose equity is tied up in the land, but he’d like to keep farming for a few more years,” says Peter Jaques, head of real estate at FarmlandFinder. “Or it may be a progressive farmer who wants to take the equity from one property and use it to buy another piece of land or invest elsewhere in his operation. The other time a program like this could be useful is when a farmer has fallen on hard times and he needs to free up some cash to keep the farm going. It may not be ideal, but at least there’s an option.”
“For farmland investors who are open to partnering with farmers, it’s a tough option to beat,” Brockshus says. “Who knows the land better than the person who’s been farming it for years? They’ll be your new partner to make sure your investment is taken care of.”
There is no up-front cost to the farmer for entering into a sale-leaseback. To see if you qualify, visit farmlandfinder.com/sale-leaseback.