You’ve heard the phrase ‘location, location, location’ when it comes to choosing a home. It’s no different for farmers when choosing a site for their farm business. All sites come with unique conditions that impact the farm’s viability, including physical characteristics, zoning restrictions, federal and state permitting requirements, and pre-existing third-party rights of neighbors, landlords, tenants, easement holders, or lenders. This webinar will cover the who, what, how, where, and most importantly, why, of identifying the unique characteristics and regulatory requirements tied to your future farm property before you sign on the dotted line.
Presenters: Attorneys Laura Hartz and Stacey Caulk of Drummond Woodsum
This Guide explores the following alternative ways to purchase farmland:
- Seller-financed land acquisition
- Purchase by installments
- Lease with an option to purchase.
Farmers can obtain rights to farmland in a variety of ways, for example, by entering into a lease with the owner of the farmland, sharing ownership of the land with others, or acquiring full ownership (“fee simple” title) of the farmland. Part I of this Guide focuses on:
(i) the different types of land ownership,
ii) the advantages and disadvantages of purchasing the farmland directly through fee simple ownership, and
(iii) considerations when locating the right farmland to purchase.
Once a deal has been negotiated, a farmer works with the land owner to buy farmland for the agreed-upon purchase price. Part II of this Guide focuses on
(i) the elements of a Purchase and Sale Agreement,
ii) the investigation “due diligence” process that every farmer should undertake,
(iii) the deed and other acquisition closing documents, and
(iv) the closing.
Chapter 61 programs offer a property tax break for landowners willing to keep their land undeveloped for a specified period of time. This guide provides all you need to know about the Massachusetts Chapter 61 Tax program. After reading this guide, you will know:
- description of Chapter 61 programs in forestry, agriculture and open space
- minimum acreage to qualify for the program
- types of land eligible for the Chapter 61 programs
- tax benefits of the Chapter 61 programs
- what happens if you withdraw from the program
This informative guide was prepared by University of Massachusetts Extension.