Renting out farm land

[stament]

I wanted to buy a small piece of farm land near my wife's house to grow some vegetables.  The land isn't being used at the moment but the owner doesn't want to sell (which is his prerogative).  Now I'm thinking of approaching him and asking if he'd consider leasing it to me.  Does anyone have any experience on ballpark rental costs per rai?  This is located in a very rural area with no pond or stream nearby and there isn't that much rain (Li).  

 

Thanks in advance

[weedywhaoo]

Around 1000-3000/rai/year is a ballpark figure

[stament]

7 minutes ago, weedywhaoo said:

Around 1000-3000/rai/year is a ballpark figure

WOW sounds cheap!

 

Do they expect a share of the profits for that too?

[Michael Hare]

No, they do not expect a share of the profits. Those figures are about right. 3000 baht baht/rai/year would be the high figure. I do not know of figures higher than this for agricultural land. In some areas, one can rent (lease) land for only 500 baht/rai/year. 

[mahjongguy]

It sounds cheap because it is cheap, cheap because small scale farming is a rigged game. With one rai or twenty, it's difficult not to lose money. For the staple crops like rice, all the profit is sucked out by the middlemen. 

[djayz]

5 hours ago, stament said:

WOW sounds cheap!

 

Do they expect a share of the profits for that too?

No. 

[kickstart]

The wife's sone in law is a rice farmer he rents his land1200 baht/ri/year .

Most other land for corn or cane is about 1200-1500 baht/ri/year, they is no profit share.

As for djayz saying that is cheap ,sit down and work a budget out for corn ,you will be spraying 4-5 times a year against Fall Army Worm, harvest costs of 600 baht /rie ,and you will be getting  about 6.50 baht /kg at 30 % moisture for your crop .

I think they will be a lot of red ink  on your budget no one can make money at 3000 baht /baht /year  rent ,like Michael  said I have never heard of rent that high, if anyone was asking  that around here, that land would just stand idol.  

Or, 25 ri  block 3-year leas to grow cane  paid up front,  100 000 baht,or 33 000 baht/year .or 1300 baht/ri, and you have not got out of bed in the morning yet .

These are figures  I have heard about around  here ,land near here was about that ,the guy never made one baht .drought did not help either ,someone else now rents the land 

[stament]

11 hours ago, kickstart said:

The wife's sone in law is a rice farmer he rents his land1200 baht/ri/year .

Most other land for corn or cane is about 1200-1500 baht/ri/year, they is no profit share.

As for djayz saying that is cheap ,sit down and work a budget out for corn ,you will be spraying 4-5 times a year against Fall Army Worm, harvest costs of 600 baht /rie ,and you will be getting  about 6.50 baht /kg at 30 % moisture for your crop .

I think they will be a lot of red ink  on your budget no one can make money at 3000 baht /baht /year  rent ,like Michael  said I have never heard of rent that high, if anyone was asking  that around here, that land would just stand idol.  

Or, 25 ri  block 3-year leas to grow cane  paid up front,  100 000 baht,or 33 000 baht/year .or 1300 baht/ri, and you have not got out of bed in the morning yet .

These are figures  I have heard about around  here ,land near here was about that ,the guy never made one baht .drought did not help either ,someone else now rents the land 

Interesting, how much on average can you make on corn per Rai (assuming no land rental cost).

 

 

[GreasyFingers]

As others have said it is a good way to lose money if you are thinking of a small scale commercial operation.

We used to pay 1300/rai up here where the land value is 3-4 times that, down in the valley, so very little return for the owner and a loss for us.

[khunPer]

23 hours ago, stament said:

Does anyone have any experience on ballpark rental costs per rai?  This is located in a very rural area with no pond or stream nearby and there isn't that much rain (Li).

Going farmland rental price – if it's not a share of the harvest – is 500 baht to 1,500 baht per rai...????

[stament]

2 hours ago, GreasyFingers said:

As others have said it is a good way to lose money if you are thinking of a small scale commercial operation.

We used to pay 1300/rai up here where the land value is 3-4 times that, down in the valley, so very little return for the owner and a loss for us.

Wasn't thinking of doing it, more wanting to know how much the farmer makes now who grows on the land I want to rent from him LOL. Guessing it's around 2-3 Rai he grows corn and mansapalang

[douglasspade]

In our village I paid 500 baht per Ngan with no water, and 1000 Baht per Rai for raised land with a pond - 10000L of poor quality water available daily in the mid dry season.

 

For 'good' Agricultural rice land that is situated so that a low rain season will provide enough water to cover a rice crop you can pay up to 2000 Baht per Rai.  These  land deals are usually on offer just after baling is done, and the tenant have an opportunity to turn the soil while still workable or manure before the next rain season come.

Land for Cassava/Sugar cane you can rent here for 500 to a 1000 Baht per Rai. Growing rice on that is a gamble with a low rain season - and in a heavier rain season Cassava tubers will rot. Most just do Sugarcane, it has become a low risk crop of some sorts around here.

 

Shared crops/profits is a Thai thing where Foreigners should stay well aware and away of. Rent fully or don't rent at all.

[stament]

46 minutes ago, douglasspade said:

In our village I paid 500 baht per Ngan with no water, and 1000 Baht per Rai for raised land with a pond - 10000L of poor quality water available daily in the mid dry season.

 

For 'good' Agricultural rice land that is situated so that a low rain season will provide enough water to cover a rice crop you can pay up to 2000 Baht per Rai.  These  land deals are usually on offer just after baling is done, and the tenant have an opportunity to turn the soil while still workable or manure before the next rain season come.

Land for Cassava/Sugar cane you can rent here for 500 to a 1000 Baht per Rai. Growing rice on that is a gamble with a low rain season - and in a heavier rain season Cassava tubers will rot. Most just do Sugarcane, it has become a low risk crop of some sorts around here.

 

Shared crops/profits is a Thai thing where Foreigners should stay well aware and away of. Rent fully or don't rent at all.

Oh yes totally agree, would avoid shared crops/profits.  

[GreasyFingers]

2 hours ago, stament said:

Wasn't thinking of doing it, more wanting to know how much the farmer makes now who grows on the land I want to rent from him LOL. Guessing it's around 2-3 Rai he grows corn and mansapalang

How much anyone makes or loses depends on the markets at the time of harvest. It can be 60 baht/kilo or 10 baht/kilo and it can change very quickly.

[douglasspade]

50 minutes ago, GreasyFingers said:

How much anyone makes or loses depends on the markets at the time of harvest.

Also unplanned events, our wind gusts went up to 58km\h by 4pm today and ripped through my 2 patches of corn snapping about 15% of the lot. Sad. Will manually cut the broken ones off tomorrow and divide it between the animals.

[Michael Hare]

Our company, Ubon Forage Seeds, contracts farmers in several villages in Mukdahan, Roi-et, Amnart and Ubon provinces to grow grass seed crops. Many of the farmers have to lease extra upland for about 1,000-2,000 baht/rai to grow the seed crops if they don't have enough family land themselves. Their gross returns from selling the seed are between 8,000-12,000 baht/rai. Their net return depends on how much fertiliser they apply and how many outside labourers they employ to help with the manual seed harvesting. The most profitable farmers do everything themselves with family labour and are very careful with the amount of fertiliser they apply. 

[GreasyFingers]

14 hours ago, douglasspade said:

Also unplanned events, our wind gusts went up to 58km\h by 4pm today and ripped through my 2 patches of corn snapping about 15% of the lot. Sad. Will manually cut the broken ones off tomorrow and divide it between the animals.

Sad, but just another way for farming to be difficult.

[sirquest007]

I know it's an old thread, perhaps new life ????

 

Renting/leasing farm land.

More or less the same as owning it, except you don't pay mortgage and when you leave, you can't sell it ????

 

right or wrong??

 

Most my live I have rented houses, because it suits me.

done lots of changes in the garden, sheds, replaced kitchens and bathrooms, carports... All the things a home owner would also do.

 

with the knowledge that when I leave, I need to tear it down, or the owner is willing to have it. (Kitchen and such ,the owner agreed)

 

one might say it's a stupid investment, others understand...

living 10 years or longer in the same house, what is really your costs for the bathroom or kitchen?

and 10 years enjoyed the additional luxury ????

besides this, I enjoy the DIY.

 

back to topic.

If I would buy 2-3 Rai of agriculture land, I would build a small farm house on there.

Costs 4-600k

My wife lived all her life on a remote farm, you can take the girl out of the farm, but not the farm out of the girl.

 

Due to air pollution, we relocated to Ban Chang, rent a reasonable nice house in a gated community, and there is nothing "wrong" with it, except it ain't free rural nature.

 

So we like to build, lovely mountain area around here.

 

Lots of agriculture use, cassave and pineapple seem to be popular ????

 

Poking around to get some price indication.. 3-4 million per Rai! 

Now that is a lot.

Udon Thani, Phen area, at a concrete road, water & electric.. 80k per Rai.

Sadly... That's the environment we left due the pollution (COPD)

 

Absurd amount of difference.

And frankly, my wife isn't looking forward to mortgage.

 

Just brainstorming here...

What is the problem for leasing the land, say for 10 years, have maximum rent increase in the contract and extendable for another 10 years. ??

 

Small farm home and mini farm for own consumption.

 

That should not be a legal issue to get it allowed by the land office (if needed to ask)

 

Besides.. 4-600k, that's the same as 3-4 years of rent.

 

The lease of 10 years is enough to "earn back" the investment.

 

I read about land lease 3k per year.. 

Say it's 5k here 

2-3 Rai, more then enough.

 

Mortgage payments would be 10 times higher (!)

And yes, after 30 years or so, you would own...

 

I'll be 85 by then and probably 6 feet under.

My wife probably will go back to the family farm, my pension will continue to her...

No financial problems.

 

We don't need or want to buy.

 

Just build our small farm in the middle of nowhere.

No need for electric or water 

We didn't have in Udon..

So solar and pumps are already available.

 

Is it possible to build a small farm house in rented agriculture land?

 

And what are the possible storms in the future?

 

Tia for your thoughts & input!!

 

 

[kickstart]

You can build on rented land, just make sure when you build the house and then the owner decides he wants the land back, or buy one of those ready built homes on posts, any problems pick it up and move on.

Over the past few years, a couple of members have got a 10-year lease on a piece of land, and have they name on the chernot, land title deed, which unless the goal post have been moved, is perfectly legal for a farang to do, then the landowner cannot say I what my land back.

But 10 years is a long time finding someone who is willing to lease land that long will be hard. and the cost of leasing /renting, you might have to say in x years I will increase the cost x baht.

[ScootsC]

Does anybody have any good sources of where to find listed agricultural land for rent. Websites, companies etc etc. Many thanks in advance 

[rima]

Hello

Interested in renting a land in thailand to start a nursery for ornamental trees. Approximately around 200-250 rei near saraburi or Caom. Can any one help please.  A land that has been used for planting corn would be perfect. 

[Edgar8]

Hello Forum. How are you. 
My name is Edgar.

 

I am looking to rent 20 rai of land to grow industrial hemp. 
 

Where is the best place to rent? 
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Edited October 26, 2023 by metisdead