In the vast landscape of agricultural development, the quest for suitable land is a pivotal journey for many farmers. Matters such as signing a good lease contract and knowing when you should cut ties with an owner, are all important details to agree on from the very beginning.
These were some of the topics covered during the recent Gather to Grow session on Instagram Live, where experts explored the ins and outs, and the do’s and don’ts of land leases,.
Craig Murrell, Agri Enterprises’ head of rural development and advisory services, emphasised the crucial role his organisation plays in assisting farmers in acquiring land and navigating the intricacies of lease agreements.
“Everything you want, things you feel will trouble you, must be in the lease agreement. The number of farmworkers and the lease duration are paramount factors. Clarifying ownership of shade nets and boreholes, as well as addressing the fate of these structures post-lease, is vital for a smooth landlord-farmer relationship,” he said.
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Duration and water crucial aspects
Thandeka Dladla, a new-era livestock farmer from KwaZulu-Natal, shared her experience of starting with the department of agriculture but eventually finding a vacant farm through personal exploration. This led her into farming on a full-time basis – something that she does not regret.
Dladla advised fellow farmers to incorporate water usage agreements and carefully consider the lease duration. She said the usage of water cannot be divorced when it comes to the purchasing of land therefore all the nitty gritty of the status of water licenses and availability needs to be clearly indicated on the agreement.
“We had a written lease agreement and water usage was a key consideration,” she said.
According to Dladla, the duration of the lease agreement often depends on the farm owner. She said while leases can span from five to ten years, the department of agriculture typically engages in ten-year agreements.
She said consulting broadly on how to get a better and balanced lease agreement, is critically important as signing for something that could be costly might derail growth and be a financial burden.
Exploring unconventional methods
Mampuru Madiga, a livestock and crop farmer from Limpopo, took an unconventional path, securing land through word of mouth.
“We negotiated a one-year contract lease initially, but after 11 years, we are now on a long-term ten-year lease,” Madiga said. She highlighted the success of her journey from a chance encounter to a flourishing livestock production venture.
Both Dladla and Madiga stressed the importance of legal requirements in leasing land. Attention to lease duration, rates, rules set by land owners regarding animal limits and worker conditions, and a clear outline of actions in case of non-compliance are critical components for a successful lease agreement.
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