What are some important issues to address in a farm land lease agreement?


Quick Answer

Some important issues to address in a farm land lease are how costs are shared, how land fertility is maintained, and how buildings are maintained and improved, according to Iowa State University Extension. A lease that considers these points can efficiently combine landlord and tenant resources.

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Full Answer

A farm land lease should define how landlords and tenants share the costs of herbicides and pesticides, explains ISU Extension. The lease must also describe how harvesting costs are shared. Harvesting costs include combining, drying, transporting and storing crops.

The farm land lease needs to explain how the cost of keeping the land fertile is divided between the tenant and landlord, advises ISU Extension. Fertilizer costs are sometimes paid solely by the landowner, but sometimes they are split between the tenant and the landowner. This usually depends on the length of the lease.

Every farm land lease should detail how the buildings on the land are going to be maintained, both in appearance and functionality, states ISU Extension. Landowners usually pay for materials and supplies, while tenants perform the labor and contribute the machinery needed for the work. Even though farm tenants may not directly benefit from performing these improvements, their contributions can lead to more favorable terms when the farm land lease is renegotiated.

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