Most farmers would have, or have had, a mortgage. The loan, secured by the mortgage, would have most likely been to purchase the farm, to provide finance for carrying on farming activities or to purchase livestock or farming equipment. Usually, the mortgage would have been taken out through a traditional bank or a company whose business activities are connected with the rural industry. See Mortgages.

The leasing of farming land by a farmer is not as common as the ownership of that farming land. However, it is a way for a farmer to increase the area of land they have available to graze or farm without the substantial cost of purchasing additional land.

While the leasing of farmland is, in legal terms, no different from leasing a commercial premises, the lease terms, for example, are likely to include matters peculiar to the farming operations intended to be undertaken on the land. Accordingly, special attention needs to be given to provisions of the lease, both from the lessor’s and the lessee’s perspective. See Leases.