Legal Definitions - farm out

Definition: Farm out is a verb that has multiple meanings:

1. To transfer the responsibility of something to another person or company to complete.
2. To lease land for a specific period of time.
3. To deplete the fertility of farmland by continuously growing the same crop.

Examples:

• 1. The company decided to farm out the production of their new product to a manufacturer in China.
• 2. The farmer decided to farm out a portion of his land to a neighboring farmer for grazing his cattle.
• 3. The farmer realized that he had farmed out his land by continuously growing wheat for several years, and the soil had lost its fertility.

The first example illustrates the first meaning of the term, where a company transfers the responsibility of producing a product to another company. The second example illustrates the second meaning of the term, where a farmer leases his land to another farmer for a specific purpose. The third example illustrates the third meaning of the term, where a farmer depletes the fertility of his land by continuously growing the same crop.