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| It's the smartest form of partnership if one's got the money, the other none and provides the rest. Better than renting since you'll eventually own maybe 50% of the land in joint partnership after 20 years (just making up numbers to illustrate the point there).
It all depends on the partnership contract, it should be fair to all and plan for all contingencies including getting out. If the goal is, say, to eventually share the land 50/50, then as your own share increase, the contract should probably slowly move toward a true partnership where you share all costs and revenue 50/50 too, if that makes sense.
You also need to prove to your friend year after year that you are a good enough farmer for his land, as he probably would want to terminate the partnership if you prove a bad partner. On the other hand, he shouldn't be able to take you out of the partnership under any pretext you're not responsible for, like a drought, or if responsibilities were shared, like deciding not to install irrigation.
Imagine that, three ships in one; friendship, partnership and ownership! ;) | |
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Buying land: Kinda a weird question.
