As an owner of land in the countryside with a ranch or farm placed on the territory, you might not want to use it yourself. Instead, another person interested in farming can rent your land. In this case, it is a good idea to sign an agricultural property lease agreement.
In this article, you will find information on what an agricultural property lease agreement is, what should be included in this document, and crucial steps to follow when preparing the form.
Moreover, we will cover cases in which a landlord and a tenant agree to sign an agricultural property lease agreement to prevent potential problems and arguments.
A property land lease is a document that is widely used in agriculture when it comes to renting land for farming.
There are two types of agricultural property lease agreement:
The difference between these types is based on the rental rates. However, the essence is the same since both forms are used for renting land for farming.
The main feature of a cash lease is a fixed price that the tenant has to pay for renting the land. For example, the price might depend on the sum per acre, or it can be fixed for the whole property.
This type of lease contract might seem appealing for landowners since they receive the same amount of money each month, enabling them to plan their budget in advance. It causes a feeling of stability. However, a cash lease might be dangerous for tenants because their outcome depends on the reaped crops. It means that sometimes, they will have to pay more than they have received when using the land. It is possible to agree on some exceptions concerning price-changing circumstances.
When a landowner and a tenant agree on a crop-share lease, the landowner will get a part of the crops that have been grown on their land. Using this type of lease is usually more convenient for tenants since they do not have to worry about paying the rent in seasons with low agricultural productivity.
Moreover, the landowner might even add their money for some essential input costs. But not all landlords would agree on a crop-share lease since more time is needed to watch their land and productivity.
We recommend using an agricultural property lease agreement when you want to find a tenant for your land or want to rent land yourself. This form provides a comprehensive list of agreements that might improve your rental experience, safeguarding you from problems and misunderstandings.
As a landlord who does not want to perform agricultural activities themselves, you might like the idea of renting land. There are numerous advantages of this kind of land use:
When planning to sign an agricultural property lease agreement, you should consider some crucial points to include in it. Some of them are essential because the government usually asks for them, while some should be included since they make the lives of a landowner and tenant much easier.
To begin with, you have to choose whether you want to sign a written agricultural property lease agreement or an oral agreement that will be enough. We recommend spending time on a written form because it is a more reliable option.
Find all the essential steps that you should follow when filling out an agricultural property lease agreement: