Retired farmers often consider renting their farmland. Many wonder if this is still a good option.
According to chartered accountant Kristjan Hebert, Farmers who rent a significant portion of their operations don't have the same proportion of owned property as past generations, but this isn't really a concern. Farmers may be retiring with a lower percentage of owned acreage than in the past, but the value of that farm property is much greater.
FCC recently released its FCC Farmland Values Report – and it showcased a reality many in the agriculture community already knew, land values have reached record highs. Hebert’s comments were featured on the FCC website.
“I don’t think producers need to own a whole bunch of land to have a fairly comfortable retirement,” says Herbert.
Herbert points out that Farmers who don't trust the stock market or other off-farm investments are more likely to keep at least some of their land. They consider it a valuable addition to their retirement fund portfolios. Whereas retired farmers may have sold their farms outright 10 years ago, many more are now renting them out or selling some and renting out the rest.