Farmers who rent land often consider whether to continue leasing or to purchase the farmland they work. The decision involves several factors, including long-term operational goals, familiarity with the land, and financial readiness.
For those planning to farm for generations, owning land can offer stability and control. Years of working the same property help farmers understand its production potential and assess if a sale price is reasonable. Land that fits well within an existing operation’s geography may also be more valuable than outlying parcels.
Financial health is a key consideration. Farmers are encouraged to review their liquidity, equity, and cash flow before pursuing a purchase, as buying farmland requires significant capital investment. Ownership eliminates uncertainty around lease renewals and allows for long-term improvements in soil and infrastructure.
Opportunities to buy rented land depend on timing and relationships with landlords. Maintaining good relations may increase chances of purchasing when the opportunity arises.
Farmer’s Business Network (FBN) offers resources for those weighing renting versus buying decisions. The organization provides educational guides such as “Renting vs. Buying Farmland: Which Is Right for You?” through FBN Finance.
For those ready to move forward with a purchase, FBN Finance supports farmers in securing land loans. Their loan advisors have over 15 years of experience in agricultural finance and guide clients through real estate loan processes tailored to individual needs.
FBN was founded in 2014 by Charles Baron and Amol Deshpande and is headquartered in San Carlos, California at 388 El Camino Real. The company aims to enhance farming by increasing access to information, analytics, and competitive choices for producers (official website). FBN operates an online marketplace where growers can exchange insights anonymously and buy products directly from suppliers (official website). Membership includes free tools for data-informed decisions in areas like seed selection and pest management (official website).
Diego Casanello serves as chief executive officer of Farmers Business Network (official website).
Terms apply for FBN Finance services; borrowers must be members of Farmer’s Business Network, Inc., meet underwriting requirements, and all credit is subject to approval.