Renting Farmland
For those who don’t know how Buds and Botanicals started, it was in my mom’s backyard! I had dropped out of college, my dad just passed away from cancer, and we were in the middle of a pandemic. I knew I needed a job, so I started to look for anything flower and plant related. What started out as a delivery driver for a wholesale flower warehouse, soon turned into the job opportunity to become a head grower on a 20-acre farm and greenhouse growing flowering annuals and hanging baskets. While being the head grower here for a few years I was given the opportunity from my employers to "rent" their un-used field space to grow my cut flowers. By rent I mean grow there for free with no contract. At the time I had a lot of trust in these people and thought it was a dream come true. Growing my business and farm right where I worked 50-hour weeks already? Perfect and convenient! So, I began expanding from my small backyard plot to a new 2-acre open field. This was a big risk and looking back I'm not sure If I would do it again. I spent thousands of dollars on compost, seeds, landscape fabric, drip irrigation, etc. After about 2 years of growing and expanding on this plot I barely broke even and was not growing good quality crops due to many different factors, the biggest being compacted soil and not always being on sight to monitor the crops!
After about 2 full years of growing on this plot, my employment quickly went downhill and the job I once loved had become a toxic workplace. I knew I had to look for a new job, but what would I do with my farm and all the crops growing here? I knew that I had to get an official rental contract before I could put in my 2 weeks’ notice and look for a new job.
Below are some photos of the rental plot we were using. This was a huge expansion for my business.
There are many websites where you can get templates for land leases. The best option is to seek out an attorney or lawyer who is a professional and can protect your best interests. In my personal situation, I did not have the time nor money to get an attorney, so I used one of these free resources. If this were to be a more official and permanent situation, I would definitely want to hire an attorney. My reason for a lease was more so as a last stitch effort to protect my crops that were already planted there. This lease gave me an official year to finish the season and move everything out, with or without being employed at this farm.
Dealing with landlords that did not want to sign anything and make an official contract was difficult. The first step was to go through the lease and adjust anything the landlord wanted so we could both agree and feel comfortable. After I got a signature, I made sure to get a certified cashier’s check to make this official. Although the landowner refused any money, it had to be exchanged in order to make this contract "somewhat" official, so I did a one-time payment of $100 to lease this land for one more year regardless of being employed for their company or not. This gave me the freedom to get a new job and not lose my crops. A week after this contract was signed, I got a new job and put in my 2 weeks’ notice- The rush was on to find our new property in under a year!
THINGS I WOULD SUGGEST:
Hire a lawyer to make your lease official, especially if this will be a long-term situation. I used a free template of a lease online because I was in a rush and just needed to somewhat protect myself for one final year to get through the season. Even if you know the landlords personally you NEED a lease! People and plans change. Even if you are friends with the landlords this contract is to protect you and your business!
Make it a multi-year lease. Farming leases are seldom one year. It's hard to plan and grow your business if you are unsure of if you can grow there the following year. For example, I plant a lot of flowers in the fall that get over wintered and bloom the following spring. If I can't guarantee the land for the following season, then I wouldn’t have any flowers to harvest that next Spring!
Include any parameters like electricity usage, parking, dumping area, trash disposal, storage, hours you can work there, noise restrictions, building restrictions like temporary greenhouses. Think of every little detail to protect yourself. For example, in my situation, once I put in my two weeks’ notice at my job, all of a sudden, I was told I couldn't work on my rental field on the weekend... How would I get any work done if I worked M-F and now couldn’t even work on the weekend? Unfortunately, my lease didn't cover specific working hours, so I had to respect the landlords wish and my crops suffered even more! Below are some photos of greenhouse space I was able to use to grow winter Tulips and Fall Chrysanthemums. This is something you would want to include in your lease.
Think big picture! One of my biggest regrets, is investing so much money into this rental plot of land and not making much of a profit in those first few years. Think about soil, cover crop, etc. How are you spending your money to improve someone else’s land? Ask yourself if this is a temporary growing space or more permanent? Keep in mind no rental spot is ever permanent unless you eventually buy it. I wish I would’ve grown simple, low costing crops to make some quick money rather than perennials and peonies that take a long time to get profitable harvests and then had to dig up when we moved. If I grew quick annual crops like zinnias cosmos, and dahlias I could’ve made more money with a lower overhead cost. What is your end goal with this plot of land?
Think about your travel time. My rental plot was 15 minutes away from my apartment. It seems like a short distance until it’s a 105-degree day and your crops need water, or if there was a snowstorm over night and you need to sweep off your tunnels, so they don't collapse under the weight of the snow, but now the roads are closed. Is there a bathroom on sight you can use? How about drinking water? These are all important things to consider!
Mailing address VS physical address. Can you advertise to customers that this rental plot is "your farm"? Can you have on-farm workshops or pickups? I wasn't allowed to have on farm pickups unless they were already customers of the greenhouse I was working for- This is something I wish I thought more about!
You will need insurance- I had personal business insurance and had to list my rental plot as one of the locations I do business at. This was required by the landlord in order to make the lease official. From their point of view it makes sense, they don't want to be held liable for anything related to my business.
Ultimately, everything happens for a reason, and I am happy I was given this opportunity to become a professional grower, learn the ropes, expand my business, and meet so many other people in our industry. Without this rental experience (the good, bad, and ugly) I wouldn’t be where I am today- Renting farmland can be a great opportunity and is very popular across the US. Please keep in mind, this blog post is based off my own personal experience. Each situation is different. As long as renting land is done professionally to protect yourself, it can truly transform your business!