How Do You Rent Farm Land With a Lease Based on Crop Production?

Full question:

I want to rent about 3 acres of land for agricultural use and both the owner and I have agreed to make payments of the lease based in a percentage of the crop produced on the land (crop sharing based on the FOB price at that moment). I would like to know how can we begin to draw a 1 yr. contract form January 01 to December 31 of 2010. I did not see any agricultural land lease or sharecropping contract models. Please advise.

Answer:

Information listed in a farm lease agreement will typically include:

•Date/Contracting Parties/Description of Property, and Term of Lease
•Land Use and Cropping Program
•Amount of Rent and Time of Payment
•Signatures of Parties in Agreement

Information listed in a crop share farm lease may also include:

•The Parties' Shares of Crops and Crop Expenses
•Marketing,Billing, Management and Miscellaneous Provisions
•Date/ Contracting Parties/Description of Property, and Term of Lease
•Land Use and Cropping Program

 

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

A lease to own agreement for a farm allows a tenant to rent the property with the option to purchase it at a later date. This type of agreement typically outlines the rental terms, purchase price, and conditions under which the tenant can buy the property. It provides a pathway for farmers to invest in land without immediate capital while ensuring they have the opportunity to own it in the future.