A Brief Introduction About the Agriculture Lease Agreement
The agriculture land lease agreement is represented through an official document that helps in defining the individual rights as well as obligations of each party involved in the contract. The modern agricultural sector is known to rely significantly on leases of various kinds. Out of all such types, the agriculture land lease agreement is the most common and vital one.
The leases are aimed at meeting the specific needs of the farmers. As there is the absence of the ownership of farmland growing in the United States of America, ranchers, as well as farmers, are known to lease several acres of the farm. This can be acquired by the potential farmers with the help of the agriculture land lease agreement forms.
Who Takes the Agriculture Lease Agreement?
The agriculture lease agreement is known to create a situation in which the landlord or owner (referred to as the lessor) and the tenants (referred to as the lessee) are known to sign a proper agreement. In most of the states, the clauses dealing with the respective landlord-tenant laws are also applied to the given agriculture leases.
Purpose of the Agriculture Lease Agreement
There are several reasons why farmers all across the country opt for signing the agriculture lease agreement template pdf. While it allows them to carry out farming in a productive piece of land, it also enhances their overall revenues. Legalized agriculture land leasing is known to improve the overall productivity, ensure maximum agricultural efficiency, ensure equity, and much more.
The legal document also serves as the contract that helps in ensuring the end-to-end security of land ownership rights for the owners of the land while also providing security of tenure to the tenants for the agreed period of the lease.
Contents of the Agriculture Lease Agreement
When a piece of agricultural land is given out on lease to the lessee by the lessor (the landlord or the owner of the land), it is important to specify certain aspects of the agreement. While it might not be necessary to include all the basic elements of the lease, you should not aim at eliminating most of them. This is because if you aim at avoiding the basic concerns of the agreement, the overall security of the given leasing agreement would be compromised. Some of the essential components of an agriculture land lease contract are:
- Names & contact information of the parties
- Commencement as well as the duration of the lease
- Description of the agricultural land
- Rent amount
- Rights to use & possession
- Upkeep of the agricultural land
- Condition of the agricultural land on return
- Dispute resolutions
How to Draft the Agriculture Lease Agreement?
When you are preparing the Agriculture lease agreement, it is important to consider all possible aspects of the same. Right from determining the individual rights as well as obligations of each party in the agreement to determining the agricultural land lease rates, tenure of the agreement, and so more –make sure that you have specified everything in the basic terms & conditions of the contract. Some of the important points to keep in mind are:
- You should consider the length of the term of the lease in addition to the overall security that is being provided by the tenancy
- The degree of control as well as freedom given to the tenant during the lease
- The financial implications, as well as the flexibility of the combination of the lease length along with control, freedom, and security.
When you wish to negotiate on the terms & conditions of the agriculture land lease contract, here are some of the essential tips:
- Ensure open communication with the other party throughout the term of the lease
- Be realistic on agriculture lease rates while considering additional factors
- Discuss the overall dependability by keeping loyalty & tradition in mind
- Barter for the discount rates for a better deal
Benefits & Drawbacks of the Agriculture Lease Agreement
Whether you are the landlord or the tenant of the agricultural land, you can obtain some potential benefits of the agriculture lease contract. Here are some points to note:
- Advantages of property taxes
- A reliable stream of revenue
- Effective land management meeting the specific stewardship goals of the landowner
- The burden of effective property management can be shared
- The building of successful relationships on the grounds of effective communication and shared values
While there are several benefits of the Agriculture lease agreement, there are certain drawbacks to the same:
- Fixed-term leases can encourage many farmers out there to overpay for the given, rented lease
- Hindering long-term projects in the agricultural sector
What Happens in Case of a Violation?
There could be some grounds for the violation of the agriculture lease contract. Whether the landlord refuses to abide by the specific terms & conditions of the contract or the tenant fails to fulfill the respective responsibilities, there are outcomes of the given violation. The first result of such a violation could be the premature termination of the lease –terminating the agreement before the end tenure of the contract. A lease can be ended anytime during the tenure of the contract if some clauses are violated(1), or either party mutually agrees on the same.
Model agricultural land agreements are available in many countries all around the world. Before signing the lease contract, it is recommended for both the parties to go through the specific terms & conditions thoroughly. Make sure that your responsibilities in the contract are quite clear. If you are facing trouble with preparing the lease contract on your own, you might as well consider taking professional help from a reliable attorney in your area. The lease agreement should also consider ongoing government laws.