The Value of Written Agreements in Farm Leases
When two parties reach a mutual agreement, it is highly advisable to formalize the agreement in writing. Having a clear, written document serves to protect both parties involved.
Our office frequently assists clients with drafting farm leases, and we strongly recommend to both landlords and tenants that you have a written, not oral, farm lease in place. A comprehensive written lease ensures that both the landlord and the tenant are on the same page, eliminating ambiguity and preventing misunderstandings that can arise from simple handshake agreements.
Key details often addressed in a farm lease include:
Provisions for lease termination
An option for automatic renewal
Specific expectations for the end of the lease if it is not renewed (e.g., the required condition of the land)
Fixed or flexible rental amount
Security interest in growing crops
Clearly outlining these details in a written document helps to eliminate confusion and potential conflict within the local farming community.
While Blethen Berens cannot dictate the pricing within a farm lease, we can provide valuable assistance by structuring the terms to incorporate the most current legal options available, including those that account for relevant market trends.
Schedule a meeting here with Mary Kay to start the conversation.