What you need to know before you lease a piece of land for farming

September 20, 2022

Land leasing isn’t typical in our country, but leasing for agricultural purposes has, over the years, become popular.

A farmland lease occurs when farmers seek suitable land to carry out their farming activities. The said farmer then has an agreement with the landowner, which will allow the farmer to carry out his activities after he pays the agreed amount to the landowner.

What you need to know before you lease a piece of land for farming

When looking for a piece of land for your agro-farming activities, there are a few things you need to consider before making your final decision.

Time 

When researching, many farmers insisted on making time for this particular venture. 

A lot of people I talked to leasing land for farming  during the very beginning put more emphasis on making time for this, as keeping a close eye on your farm produce will help you;

  • Provide the proper guidance to your farmhands.
  • Be able to troubleshoot any issue when and if they arrive.
  • And it is always a plus to know what is happening with your projects, this way, you will be able to an accurate account of what happens.

So before committing to leasing land for farming activities, make time for the venture.

Location

On the aspect of location, it is important to pick an area convenient for you. 

For example, if you’re living in the city and starting off farming as the primary source of income or a side hustle, it is essential to lease land that is conveniently close to your areas of residence. 

Leasing land close will be a game-changer for you as it will enable you to keep a close eye on your project.

Your decision on the location you choose for your farming will depend on several factors.

It’s always good to find a piece of land that is easily accessible. This will enable easy transportation of your harvest and anything else you need to reach the farmland.

It is also important to know the vegetation that thrives in the area. With this in mind, you will pick out the ideal location for your project.

Even as you do your research on location, being aware of the pests and diseases that plague that area will go a long way in protecting your vegetation or even the livestock you’re planning to keep. 

Do your due diligence. 

It is essential to know the environment well and what comes with it. 

For starters, it is critical to know the culture and behaviour of the people in that area. A good example is whether theft and property destruction are activities that plague the area.

Talk to farmers and people living in the area about what goes on. This will put you in a better position to make an informed decision.

Due diligence on your lease agreement should be a priority; ensure that you’re leasing land from the right individual or company. Leasing land from the wrong people will lead you to huge losses and forced evictions.

With my research, I’ve also found it helpful to seek other people’s points of view from their experience leasing land for farming. These discussions, or your research online, will give you a better understanding of your venture. 

Water source and its proximity

Water is life. That’s why having it close to the land you want to lease out. 

Some lands come with water sources like boreholes which is a plus.

Another thing that is always a plus to have on the piece of land you’re planning to lease is storage systems for your plant water. If it’s not present, you can request to include it during your lease negotiations.

Whatever the situation, make sure water is available because your harvest will fail in productivity without the right supply.

Water tanks are good storage systems on the piece of land you’re leasing. 

A good and reliable water storage system will come in handy if you face unexpected water shortages. 

Water tanks
Image courtesy of Enduramaxx

Farmhands 

Having help around your project is essential. Having a good farmhand who is reliable is even better. That’s why it’s important to have people in mind for the position. 

Now, since you’re leasing land, you have a couple of things to consider, like the kind of arrangement you will have with them.

For proper accountability and follow-up for your farming, it’s always advisable to have the farmhands live on the plot of land you are leasing. 

Build a housing structure that will accommodate your farmhand if the land you choose to lease doesn't have one.

Farmhands 

The gentleman’s agreement: Price

Many people I have come across leasing land for their farming activities have what I like to refer to as ‘gentleman's agreement. 

This agreement is basically by word of mouth and M-pesa transactions. 

Now, this was a bit concerning because my initial research had emphasized having written agreements that give a sense of security when leasing land. 

But this is a common practice, especially in areas such as Kiambu, Kitengela, Ngong and parts of Ukambani. People go now go on gentleman’s agreements where you as a person interested in leasing land, approach a land owner agree on what you can and can’t do on the land besides farming and then pay via Mpesa and that’s it.

A gentleman’s agreement
A gentleman’s agreement

Leasing land prices range from KSH 12,000 to KSH 25,000 per acre depending on different factors like; location, topography, included infrastructures such as piping, farm shacks or even wells/boreholes. 

Now even with that, be sure to do your research and consult other people who have taken this route to have a better understanding of what you will be dealing with.

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