Leases

Leasing Farmland, Mineral Rights, Hunting and Recreation Rights

Rental rates are influenced by the competition for land, the quality of the soils of that land, soil drainage, size of fields, distance from farm operation renting the property, and the “going rate.” The farmer and the landowner should draw up a written agreement that reflects the terms and conditions of using the land or buildings. The agreement should be reviewed by an attorney. 

Leasing Land for Agricultural Use

• Leasing Land for Agriculture provides a good overview of considerations in renting land for farm use.
• Guidelines for Renting Farm Real Estate in the Northeastern United States contains information on types of rental agreements, determining cash rents from a landlord/renter perspective along with some information on renting farm buildings.

Pasture Rental

Pasture rental is unique in that not only is the land being rented but a crop is being consumed by a grazing animal. Pasture Rental Arrangements for Your Farm can assist in learning more about leasing pastureland and calculating a fair rental rate.

Hunting and Recreational Leases

Leasing hunting rights is one way to secure income from people who are interested in outdoor recreation. The entity that is leasing the property will most likely expect to receive exclusive use of the property. As with all legal agreements attorneys should be consulted to make sure that rights of the lessor and the lessee are protected and that the terms of the agreement are understood by all involved. Designing Hunting and Recreational Leases for Your Property provides an overview of the components that need to be addressed when crafting a hunting or recreational lease.

From Cornell's Pro-Dairy, a series of articles about Farm Leases

Looking at Leases

Looking at Leases Part 1: Manufacturer's Real Property Tax Credit  Well-structured lease agreements can provide a number of benefits to a farm operation, yet many of the leased acres used in agriculture are still secured with a handshake deal. Written leases provide security for the operator and the landlord, as well as important liability protection, but may also allow the operator to receive tax benefits that neither party was eligible for in the past.

Looking at Leases Part 2: Liability Risk Management  A written lease can help secure land access and lease terms with outside landlords, but many are unaware of how a lease can help manage liability risk. Between operating activities that come with higher than average risk, and large land bases that have high values, liability protection is an ever-growing concern for farm businesses. Without proper planning and documentation, a minor accident could leave a farm vulnerable to a costly, or even crippling, lawsuit

Looking at Leases Part 3: Right of First Refusal Generally, only the length of the lease is considered when thinking about the land security that leases ensure. While some leases may have longer terms than others, this is still a relatively short-term solution to land base security. With the right planning, however, a lease can be a tool that provides your operation the opportunity to secure its land base for generations to come.

Last updated November 21, 2023