As a part of its mission to make land sales simple, instant, and online, FarmlandFinder has announced a sale-leaseback program as a part of its online marketplace for farmland.
A farm sale-leaseback can be an effective means of alternative financing for progressive farmers. Here’s how it works: An investor acquires the land from the farm owner-operator and then leases it back to them on a long-term basis. This program can provide value to farmers seeking an alternative financing solution. A sale-leaseback provides liquidity to the farmer while helping them maintain on-going operational control of the land. By pairing an owner-operator with a qualified investor through the FarmlandFinder platform, a sale-leaseback can be done in a few simple steps.
Sale-leasebacks in farmland aren’t new — FarmlandFinder just makes 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 they’d like to keep farming for a few years,” says Peter Jaques, Head of Real Estate at FarmlandFinder. “Or 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 their operation. The other time a program like this could be useful is when a farmer has fallen on hard-times and they need to free up some cash to keep the farm going. It may not be ideal, but at least there’s an option.”
There is no up-front cost to the farmer for entering into a sale-leaseback and it can be a flexible alternative financing tool to help producers achieve a variety of objectives. To see if you qualify for a farm sale-leaseback, visit www.farmlandfinder.com/sale-leaseback.
“For farmland investors who are open to partnering with farmers, it’s a tough option to beat,” says Steven Brockshus, Founder and CEO of FarmlandFinder. “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.”