LEASING FARMLAND
Leasing farmland at a reasonable price!
Leasing farmland as an investment has become more and more topical since the prices of farmland have increased over time in correlation with the purchase prices of land. Often, companies operating in agriculture don’t wish to or don’t have the capacity to purchase farmland holdings early on because the available capital is directed to other parts of the production cycle, for example the technical equipment or production facilities. Therefore, they prefer to lease the farmland and pay the landowner the lease fee once a year. As we buy land that is actively cultivated, our company owns farmland and grassland that is not yet under a lease but we wish to find strong local cultivators for them. We offer companies active in agriculture long-term and reliable cooperation and we contribute to keeping up with land improvement work.
Contact us to get feedback on the immovables currently available!
Lease prices of farmland in 2023 and lease conditions
We lease farmland for indefinite periods as well as on long-term contracts for a period of up to 10 years. The lease price of a hectare of high-quality farmland can reach 280 EUR in 2023, in the case of grassland up to 150 EUR per year. As the lease contract of each farmland holding is individual and depends on the specifics and location of the field, contact us to get an exact price offer and to start negotiations.
We have made leasing a field transparent for the lessee as well as the lessor. What is important for us is that there would be trust between the lessee and landowner and that there would be mutual active communication. As a landowner it is important for us to find out about any disturbances related to the land so that we would be able to immediately contribute to solving the problems and keeping the land improvement systems up to date.
To lease farmland or sell the land?
Leasing farmland is suitable for a landowner who does not wish to be active in agriculture themselves but wishes to remain linked to the land. In such cases, the land is leased to keep an income for the landowner and to ensure that the land is actively in use. If you wish to find a lessee for your farmland holding, you can let us know. Our cooperation network is extensive and it is possible that we are able to direct you to a strong farmer who is interested in leasing your land long-term.
More and more farmers and livestock farmers have used the option to sell their farmland but have remained linked to the land through long-term lease contracts. If you decide to sell your farmland holding instead of leasing it, read more about it on the Purchasing farmland page. If you sell your land and wish to continue as a lessee, it is an important part of the sales contract where the conditions of the lease contract are agreed.
Determining a fair lease price for farmland
What mainly affects the lease price is the condition of the farmland and its location. Generally, the principle applies that a high farmland price = a high farmland lease price. The prices of holdings in Estonia are continuously increasing and therefore the expectations that fresh landowners have on the lease prices of farmland are higher in comparison to the expectations of owners who gained their fields during the land reform.
Today’s owners of ancestral lands regained during the land reform and their heirs don’t usually feel the need to ask for a fair lease price for their farmland. The land is leased on the principle “as long as it’s not under brushwood”. Many landowners operate physically far from their immovables, the lease income on farmland is quite low and they don’t feel the need for land improvement. Therefore, we can often see such fields in Estonia where drainage systems don’t work and the ditches are under brushwood and full of sediments because the land improvement work has remained the responsibility of the landowner not the lessee. Due to this, the lease price of private land tends to be statistically lower since the quality of the fields has declined over time. If you look at the lease prices of state-owned land, they have increased nearly 10-fold in comparison to what it was 30 years ago.
Are you interested in leasing farmland? Contact us!
FAQ about leasing farmland
How can I sign a lease contract on farmland?
When you sign a lease contract, the property is given to a third party for a fixed or indefinite period, therefore it is essential that the signed contract would be detailed rather than vague. If you wish to sign a lease contract but you don’t know which requirements should be included for the protection of the landowner’s property and rights, please contact our manager of farmland.
Why lease farmland from us?
We have made the lease process of farmland as easy and transparent as possible for the lessee and lessor. We have long-term experience in agriculture which ensures the best possible communication and a fair lease price for all parties.
What conditions apply to leasing farmland?
We lease farmland for indefinite periods as well as based on long-term contracts. As negotiations are conducted separately for each farmland lease contract, please contact us in order to get a specific price offer.
What is the lease price of farmland in 2023?
As has the price of land, lease prices have also increased over the years. While a few years back, a good lease price was 140 EUR/ha, today the price level reaches 250 EUR/ha. The increase in the lease prices is also related to the gradual increase in ARIB’s subsidies and the high inflation.