Co-purchasing and co-leasing land
With the skyrocketing cost of farmland, and the desire to farm in community, many farmers are looking to access land as a group. Co-purchasing farmland, and to a lesser degree, co-leasing farmland, is a big commitment. It requires deep levels of trust between farmers, and should involve lengthy conversations about entry and exit strategies for everyone involved. It is not something to be considered lightly, and farmers should set aside funds for time with an attorney* to ensure all parties are protected.
If you are interested in pursuing accessing farmland as a group but aren’t sure what organizational route makes the most sense for you, we highly recommend working through the LandForGood Accessing Farmland Together Toolkit. The toolkit outlines different access options and pros and cons for different ways to configurate group land access. It also includes case studies of other farmers who have used the models.
*Rogue Farm Corps has worked to identify some Oregon-based lawyers who might be suitable to assist farmers interested in joint land access. Please reach out to us to learn more.
co-purchasing land
There are several options for farmers who are interested in co-purchasing land. For those interested in co-living along with farming, our page on ecovillages might be more pertinent to your needs. But for those strictly interested in sharing ownership for the purpose of farming, forming an LLC or cooperative with each farmer as an owner of the entity will likely be the best option. There are other creative ways to organize co-ownership, and we recommend working with an experienced lawyer and real estate agent to identify the best option for your group.
No matter how you decide to jointly access land, having a solid, binding agreement is paramount. We highly recommend investing in time with an experienced attorney to ensure everyone’s interests are protected and the arrangement will hold up in worst case scenarios.
Financing can be a huge hurdle for groups of unrelated farmers looking to co-purchase land. Finding lenders with an open mind or lenders familiar with unconventional ownership models will be essential for farmers looking to find a loan. That being said, there are ways to access traditional funding like FSA loans–you can read more about that in the resources section below. There are other creative options discussed in the resource section to bypass traditional lenders altogether.
Farmers in other states have used cooperative housing or co-housing models to access farmland. In Oregon, projects like these are more difficult to bring to fruition because of zoning restrictions. Farmers interested in those types of projects should be careful to look for land that is zoned to allow for multiple residences.
co-leasing land
Co-leasing land is a much lower commitment than co-buying, but still requires careful forethought and planning. Finding a landlord who will be open to an atypical lease structure will be important, especially if the farmers are trying to lease the land as separate farm businesses. We recommend working through the Accessing Farmland Together tool to identify what lease structure might work best for your situation.
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Cooperative Purchasing and Financing Guide for Farm and Ranchland | via Farm Commons
This free resource from Farm Commons walks through FSA eligibility for unrelated groups of farmers, and community fundraising. It includes a hypothetical case study of a cooperative attempting to apply for FSA financing to co-purchase a piece of farmland. We recommend reading through to also learn about entry and exit strategies for unrelated farmers looking to co-own land.
Affording Land | via Greenhorns
Page 22: Cooperative Land Purchasing
This guidebook includes resources for all aspects of land access, including creative financing options. Chapter 3 includes a section about collaborative land access.
Accessing Farmland Together Webinar | via Land For Good
This webinar is an accompanying resource for the Land For Good Accessing Farmland Together Toolkit. The webinar walks through the options outlined in the toolkit and provides further details about entity options.
The Ultimate Guide to Co-Buying a House | via Realtor AnnieRose Shapero
Although this resource is geared towards folks interested in co-purchasing a home, the wisdom shared in this article can be useful for co-purchasing farmland as well, especially if the land includes a home.
Guide to Financing the Community Supported Farm | via UVM Extension
Chapter Three: Owner-Financed Sales and Land Contracts
Chapter 3 of this guidebook discusses how farmers might utilize an owner-financed sale to avoid working with traditional lenders like banks.
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Most available lease templates will not be applicable to co-leasing situations. Farm Commons offers several resources for putting together a lease that will be best suited for your particular needs.
Accessing Farmland Together Webinar
This webinar is an accompanying resource for the Land For Good Accessing Farmland Together Toolkit. The webinar walks through the options outlined in the toolkit and provides further details about options.
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Explore some case studies on Land For Good’s website
Earthseed Land Collective is a communal, cooperative land project in Durham, NC. Read more about their land access journey in this article from Agrarian Trust