Leasing of Agricultural Land

Leasing is a contract or agreement between the Lessee (tenant) and the Lessor (owner). It spells out terms of intention to rent the property of the owner by the tenant for a certain amount of period.
Basically it assures both the Lessee and the Lessor use of property, in this case, land, and payment in exchange respectively. Usually for agricultural land use, the agreement is always per year. However others go for per planting season or per month and rent varies from one area to another.

Leasing land for agricultural purposes is gaining popularity as farmers shift from subsistence farming to agribusiness which requires large trunk of land. To Acquire or lease land for any purpose has its challenges and requires expert advice, for such transactions to pull through without any hitches. This always comes at a fee which at times is prohibitive.

Nevertheless being patient and doing due diligence on targeted land, achieving same result should be difficult.

Here are some guidelines to follow

First and foremost, identify land for leasing. Check on terrain whether flat, sloppy, steep. Avoid water pooling, soil washing areas.

Check source of water, river (permanent or not), boreholes, weather patterns because this might have a bearing
on production cost. Inquire and know what previous activity was on the farm. Basically what was planted or farm inputs, used earlier on could affect the next crop
Check on accessibility.

The road needs to be passable at all times. Check on community background. This entails area security, animal conflicts etc
Visit neighboring farms to know what activities go on there.

Do due diligence by getting to know the owner, next of kin, details of land. Apply for land search at the Ministry of lands etc. Always engage professionals if, when and where necessary.
If results are positive in all the above areas, go ahead and sign an agreement with all details captured e.g. acreage, amount to paid, lease duration etc. Involve local administration, owner and his/her family, witnesses at this stage. Traceability is very important when it comes to payment. Pay through the bank or via Mpesa. For more insights on this, watch the video attached.

Leave a Comment