The Farmland Sale-Leaseback
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Unlock Capital. Keep Farming.
Farming is capital-intensive. For many farming operations, growth may require looking beyond traditional loans. A sale-leaseback—selling farmland to an investor and leasing it back—can free up cash while keeping you in the driver’s seat.
Why Consider a Sale-Leaseback?
Strengthen your financial position
For farming operations facing debt or cash flow challenges, selling and leasing back land can improve financial ratios, provide liquidity, and allow for continued operation. This ends up being a win for the farmer, investor, and the farmer’s lender.
Fuel long-term growth
The model is effective with one property or multiple. Operators can expand strategically, make practical farm improvements (e.g., drainage tile, fencerow cleanup), then sell with a lease in place—building scale and profitability, even when rental markets are tight.
Maintain control with profit potential
Leasing land can yield more profitability than owning, with less risk. And because many investors seek long-term stability, leaseback operators often gain secure, extended control of the land without the commitment and expense of owning.
Sell into a strong market
Midwestern land values remain near historic highs. Like any investment, the best time to sell is when demand is still strong and non-farming buyers are available.
Key Things to Know
- Typical leases: 2–3 years (with long-term renewal potential).
- Investors prefer cash or flex leases over crop share.
- Be realistic—buyers watch prices and rents closely.
Why Hertz?
With ~80 years of farmland expertise across the Midwest, Hertz has guided countless sale-leaseback transactions. We understand modern agriculture—and we can connect you with serious farmland investors. Let’s talk about how a sale-leaseback could work for you. Have questions about getting started? Contact your nearest Hertz office, or call 800-593-5263, to connect with a member of our team. |
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