Every year, many growers need to know more about the farm lease agreement since there are different types of agreements though some may be specially targeting tender fruit and grape growers. When drawing up the farm lease agreement there are certain key points that need to be taken into consideration. These would include the location as well as actual acreage leased, the date of commencement of the lease as well as its termination date. The farm lease agreement should also specify the gross rent, farm property taxes, and length of lease. In case the farm lease is to be terminated, then there should be given a written notice by either party within a stipulated time frame and it should also be agreeable to both parties.
In case the tenant has to incur any expenses, then the landlord has to compensate him or her prior to the date of termination of the farm lease agreement and such expenses could include expenses for fertilizers, sprays, labor, management or other costs that are related to the operation of the farm or if the lease were to be terminated early. Also, the tenant would have first option to renew or extend the lease.
The landlord will agree to give the tenant quiet possession of the premises that have been leased out and allow the tenant to care for as well as harvest the crops on the leased premises. In addition, the tenant will agree to execute as well as carry out the operations of the farm and is not entitled to remove any trees/vines or other farm items without an agreement to do so with the landlord. In case the property leased is sold, the lease would still be recognized and in case the title is transferred, the landlord can only do so provided that the provisions of the farm lease are taken into consideration. The premises leased are done so on as is basis and when the lease is terminated, the premises should be left in clean condition taking into account normal wear and tear.
Also, the farm lease may also prevent the tenant from using the property as a pick your own operation and the tenant should also agree not to block the roadway with cars, farm equipment and other produce of the farm. The tenant also agrees to farm under good stewardship as well as best management practices and also adhere to the provisions of any state or federal Acts. The tenant shall also agree not to undertake activities, alterations, signage, or make excessive noise that are consequent to farming operations. If the crop should fail or the market fails or there are other related failures, the tenant is entitled to receive compensation and other reimbursements.
The farm lease can be terminated in case of certain events occurring such as either party failing to carry out the terms of the lease or by giving written notice within a stipulated time frame and in case of disputes either party can contact a third party to act as arbitrator. Finally, the farm lease agreement is to be signed by the landlord and tenant.
The farm lease agreement is readily available in the market and finding one should not pose any problem as there are many vendors who specialize in such documents and for a few dollars one may obtain a completely researched and well formed farm lease agreement. There is no need for researching and creating one from scratch as buying these documents provides an avenue for obtaining comprehensively created solutions that have had experts draft them and they are suited for all manner of use. Spending a few dollars, one could reap great benefits as there is plenty to be saved in terms of time, money and cost as well as being tailored to suit individual requirements.
Wade Anderson is a CPA and operates DigitalWorkTools.com
Click to view a Farm Lease Agreement