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nc ks | Are you completely quitting farming? We did a lease like you are wanting to do when dad gave up his scd F completely. Before that, he would let me trade(sell) his older piece for a bigger and better piece that I bought and I would use it on his ground as well. We farmed his, mine, and ours collectively and tried to pro rate machinery and inputs and labor so that each was paying for and providing a fair share. It was tilted in my favor of course as I am tilting the dealings with my boys in their favor. After several years of upgrading machinery like that, the machinery he leased to own to me was mostly older and less valuable and it included a clause that encompassed everything on the farm even if not specifically listed in case something happened to him before the lease was over, there would be no arguing that all the misc equipment and tools were mine.
Definitely include your tax person in drafting the lease. Make it very fair to your son so if during the lease if something needs to be upgraded, he can buy that specific piece from you and do with it as he pleases. If you are still farming some, you could give him that piece. When he sells it he has to show the sale as income and he'll have the expense of the new piece to offset it.
Edited by kb ag 1/17/2026 11:59
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How does a lease-to-own work?
