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Custom Farming: An Alternative to Leasing

William Edwards (September, 2009)

Summary

An alternative to leasing farmland is custom farming. The custom operator agrees to perform all the machine operations on the owner’s land in exchange for a set fee or rate. The landowner pays for all seed, chemicals, and other inputs and keeps all of the crop. This publication addresses when such an arrangement should be considered, the advantages and disadvantages, and how such business arrangements are structured.