Renting Your Unused Land for your Homestead
Larger homesteads can be extremely profitable in that you will likely be able to use your land for renting purposes. Perhaps this is an area of your homestead that you have not found any use for, or you simply want to gather monetary returns from your investment. You can choose to rent your land to a local farmer. Most farms in the United States are rented, sitting at 39% of the 911 million acres of arable and productive land (“How to rent…,” n.d.). If you decide to rent a portion or all your land to a farmer, then you should start by selecting an arrangement.
First, stipulate how the profits are going to be split. You want to know whether the money will be paid in cash upfront or if you will be gathering profits from the harvest. Both arrangements have their benefits and downsides, which ultimately boils down to preference.
- When the land is rented for cash, the landowner and farmer will come to a consensus regarding a per acre price agreement based on farming potential and land value.
- This gives the farmer more freedom in managerial tasks, as they should only be concerned with ensuring that the property, they are renting is paid for on a month-to-month basis.
The second arrangement depends on how much the farmer profits from crop sales. The profits generated from the sales will be split between the farmer and the landowner. The general agreement is that two-thirds of the profit goes to the tenant, with the remainder going to the landlord.
- Marketing your land will be a crucial step to attracting tenants. Posting an advertisement in your local newspaper or online is an effective starting point.
- You can also hand out flyers at local restaurants and stores. Ensure that your advertisement contains as much detail as possible.
- For example, it should let your potential tenant know how much of the land they will be allowed to use, what structures in the land they will be able to use, the tillable land access, the availability of onsite water sources, and so forth.
- You can also speak to local farmers and ask them to spread the news or inform you in case a potential tenant arises.
Do your homework once a prospective tenant emerges.
Trust is an important factor in any business deal, and you want to be able to trust that they will take care of the land and not leave it depleted of resources. Conducting an interview process is a way to get to know your prospective tenant.
- Just because someone is interested in your land does not mean they can automatically walk in. Speak to as many farmers as possible and try to get an idea of which ones you feel would work best on your land. You should have these meetings in person and organize land viewing sessions.
- This is a great time to get to know your tenant, discuss farming practices, and stipulate what the lease agreement is going to be. Always check your farmer’s references before offering them a lease. You should do so if you can contact their previous landlord to obtain extra information regarding their renting compartment.
Once you choose your tenant, follow all the necessary legal proceedings by using a formal lease. Outline all the necessary terms and conditions, leaving no gray areas. You will technically become a business owner, rendering potential exposures your responsibility. Get insurance on liabilities and protections against wrongful death or injury. After these logistical matters are dealt with, sign the lease, and keep communication between your tenant reasonable and open. Friendliness is important, but so is accountability.
Raise Sheep and Make Wool
Sheep are extremely versatile animals, and you can obtain a lot of use from them. They provide dairy and meat, and their wool can also be used for yarn. You can choose to outsource this labor, or you can do it yourself. If you choose to do it yourself, you will shear your sheep and wash the wool to remove any lanolin and debris. Any matted parts of the wool should be discarded. Next, place the wool in a tub of hot water. One tub should contain soap and another tub of hot water for rinsing.
Squeeze out the extra liquid in the wool and place it to dry on a flat surface. You can let it air dry or make use of appliances like a dehumidifier to speed up the drying process. Once the wool is dry, you will begin the picking process. (Picking is the process of “opening up the fleece.” You can use a picking tool or simply use your hands.) This is also the best time to dye your wool if you want to add some color to it. You can use natural dyes like carrots and beets or visit your local yarn or craft store for some options.
After that, you will commence the carding process, which is when it is run through a carding machine. The carding machine combs the fiber into roving clouds. Once that is done then you’re ready to spin your wool for yarn. You can use this yarn for crocheting, weaving, or knitting.