2. Lease
Income from farmland could be generated on lease by the lessor in the following ways viz:
a. Cash rent
This is the agreed amount of money paid by the lessee to a lessor on a rented piece of land annually. Cash rent is calculated by Naira per cultivated acre.
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This is a situation where an investor purchases a vast expanse of land and then leases it out to farmers who in turn will pay agreed rent on the land every year. At the same time the land will be appreciating.
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