Summary: Have you heard that it's good practice to lease your farmland to your farm or ranch business? Have you wondered why this is and what this would look like? Tune in because we've got answers for you! In this episode, we explore the advantages and disadvantages of this leaseback arrangement, including balancing the upside of the farm business having a “friendly” landlord with the reality that the business might want to pay a fair market rental. We also highlight tax issues and identify key documents and paperwork to ensure the arrangement maintains legal integrity.Recommended resources:* Sample Annotated Long-Term Agroforestry Lease Agreement (https://farmcommons.org/resources/books/long-term-agroforestry-lease-workbook/sample-annotated-long-term-agroforestry-lease-agreement/)* LLC Fundamentals (https://farmcommons.org/resources/books/farmers-guide-to-business-structures-fgbs/llcs-2/llcs/)* Farmers' Workbook for Creating a Governance Document (https://farmcommons.org/resources/books/farmers-workbook-for-creating-a-governance-document/)This work is supported by the Farm and Ranch Stress Assistance Network (FRSAN), grant no. 2021-70035-35372/project accession no. 1027099, from the U.S. Department of Agriculture, National Institute of Food and Agriculture.
