Looking for advice on Farm Land leasing in California

[Kevin G.]

Getting into the real estate game in California has been tough for me. I recently started a house flipping business in the Bay Area, which is going okay so far, but the market is super competitive. However, I am now looking at more long-term holds and exploring my options in this intense market.

One option I am considering is buying a decent amount of land (around 200 acres) and leasing it out for farming. As a newcomer to land leasing, I am not aware of the hurdles I may face.

I am contemplating leasing part of the land to farmers, solar companies, and other entities to generate some cash flow. I know that leasing land for solar purposes is significantly harder, as you need to be located near a power grid, and the building time can take a very long time. Furthermore, solar companies can back out of the deal if your land ends up not working out for them.

I have researched the average rental price per acre for farmland in California, which is around $430/acre, indicating that it can be pretty lucrative depending on the deal.

Has anyone tried land leasing in California? It almost seems too good to be true, and I don't understand why more people wouldn't do this.