Unused Fertile Land? Lease it Out

Unused Fertile Land? Lease it Out

If you have land that could be planted to a crop such as alfalfa, oats or another hay-type crop, you can generate passive income by leasing it out to local farmers.  This is a great way to utilize the land you have without having to invest in expensive haying equipment or deal with the maintenance.  If you have animals that eat hay, you can also sharecrop the land and get a percentage of the hay for no cost.

How Much Land?
In some cases, you can lease as little as one or two acres, if the farmer is nearby and will not have to transport his equipment.  If your land borders other hay ground, chances are good the farmer who cultivates it will be happy to include your area.  If a farmer would have to travel or transport equipment, you will probably need 10 acres or more to make it worth his while.

How Much Money?
In some cases, the farmer will buy the hay outright from you, or pay a monthly/yearly amount to lease the land.  In other cases, you will be given a share of the hay once it is put up, and you can turn around and sell that hay to generate income.  Figure out what is best for your situation and find a farmer who is willing to work with you.

To find someone to cultivate your land, you can ask at local feed or tractor supply stores, or post an ad in your local newspaper and on Craigslist. 

Leasing your unused ground can be an easy source of passive income, but make sure you work out the details such as payment, lease term and other conditions before giving access to your land.