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Farm Lease Agreement |
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What is a Farm Lease Agreement? |
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The Farm Lease Agreement is
simply a contract between the Landlord and Tenant to use the Leased
Premises only for the purpose of farming legal crops and any and all
uses ancillary thereto. Due to high capitol costs in the farming
business, more operators are choosing leases over ownership for
control of land and buildings. Leasing the premises offers the
flexibility in decisions and reduces debt and capitol investment
risks that one may have with
ownership.
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Leases and rental agreements should always be in writing, even though most states allow them to be oral (spoken). While oral agreements may seem easy and informal, they often lead to disputes. If a tenant and landlord later disagree about key agreements, such as whether or not the tenant can sublet, the end result is all too likely to be a court argument over who said what to whom, when and in what context. This is particularly a problem with long-term leases, so courts in most states will not enforce oral agreements after the passage of one year.