Land rent agreements?

I picked up quite few acres this year, and am sending out the lease agreements. I am curious what most of you do for newly aquired acres. The land has always been year to year cash rent. I am sending out the lease agreements with 2010-2013 crop years. What should I put in there to secure the land through this lease period in case the land was to be sold. Also, I also want to have in there that I have 1 crop year option to rent after the crop years on the lease. Meaning that for the 2014 year I have the right to farm it yet, even if they have another tenant in mind or just want to take it out of Ag land, so I at least have a year in advance notice of land I would be losing. Also, some of these farms non tillabe acres are being leased by me for hunting, and pasture land. Should those acres be a seperate lease? Any thing in particular I should put in a lease that doesnt need dozens or lawyers to interpret? I guess what I am looking for is a lease that I always have 3 years out recurring, with the 4th year, as a notified last year available. I pay 1/2 of the rent at harvest, for the next growing season, that seemed to be the cool whip on the pie to get the acreages I aquired. Any advice is appreciated!

By best advise IS to have a lawyer draw up the lease. Well worth the money as they will get the legal wording correct to protect you. As for your terms that will have to be agreed to by your renter. If the land is sold most leases are terminated, new owner cannot be held to previous owners contracts. I would include all acres in the same lease, pasture and tillable, but that's why I recommend a lawyer as they will do it legally correct to best protect you.

I have had rental agreements for multiple years with subsequent years year by year. Works OK. Here the understanding, and I think state law, is that the rentor has to be told by September that he cannot rent the following year. I usually try to pay in September and lock it up--no arguement when the landlord has cash in hand.
As far as renting after a sale--think you have a problem as the new owner doesn't have an agreement with you the old owner does. You will get whatever crops you have growing harvested then either get an agreement or leave. If the sale occurs after September and before planting you get that year.

Dave, Ive got this question over the years. My best free professional legal advise is CONSULT A LOCAL ATTORNEY FAMILIAR WITH YOUR LOCAL LAND USE PRACTICE AND LANDLORD/TENANT LAW.

Your wishes are fine and are your call..

Many local Ag offices (as well as on line forms) have fill in the blank farm lease agreements and they are pretty good PROVIDED you correctly fill in the exact details you are concerned about and the details comply with your state law.

With so much at stake its just my opinion local professional advice should be relied upon to a greater extent then a tractor forum or lay opinions, escpecially since laws may vary state to state. Also I wouldnt even attemPt to explain here in a paragraph what can take books to explain and there are just too many variables and questions and facts that need to considered to draft a good leaSE

Soooooo its your land and your money at risk and its YOUR CALL Notttttttt mine but I just had to toss out my professional opinion

PS IN very general terms, a leasehold estate would survive a land sale, i.e. the new owner takes SUBJECT TO PRIOR LEASES but subject to a ton of common law

Best wishes and God Bless

John T BSEE, JD Attorney at Law

I'm reading about a lot of legal concerns here, but nothing about a couple of pertinent issues.
Here the town(under state law) requires a 5 year lease to qualify rented land for the agr. tax exemption. The same lease works nicely to satisfy the requirements of FSA for payments on rented land. One land owner(reluctant to a commitment) wrote in a simple lease that"it may be reviewed annually". From his point of view, I can't hold that against him.
It may be a dangerous point of view, but I am more concerned with the land owner being happy about their commitment of their property. Therefore all leases may well read a little differently.

I agree with John, go get a form drawn up by a lawyer. Both posters below got it wrong on the effect of a sale, at least in Washington- Here, any lease longer than 2 years must be recorded with the county recorder to be effective, and if the lease is recorded, the new owner takes subject to the lease, and cannot nullify it.

It is acceptable to have a "fill in the blanks" lease (as to owner, legal description, dates, etc.), so long as you know how to fill them in, and the written terms are as you want them. I would charge $150 to $250 for such an animal, and I'm thinking with so much at stake, its "kinda worth the money", as my favorite auctioneer would say.

Free legal advice is often worth what you pay for it- but if its wrong advice, its not free, its costly.

I was involved in the lease of farm land for almost a half century......being the renter/lessee. One of those arrangement lasted more than 50 years, beginning with my Dad; I assumed the lease after he quit farming. I don't know how many landlords I had over the years, but it was a bunch. Except for the ones I was in a cattle partnership with, I don't know that a-one-a-them would have agreed to the terms you're proposing; it seems to me that it's one-sided.......mostly to your benefit. As far as terminating the lease by September; if that's not done, you can/may/might 'hold' the FSA payments for an additional year, but may not can 'hold' the land........jmho. Listen to the attorneys, Mike and John T., rather than me or anyone else.

Yep, Local laws such as Recordation and the Statute of Frauds which can require a writing is a good reason to consult LOCAL Counsel..... For a hundred or so bucks I charge I would obviously FIRST research the same.... At Common Law a Leasehold Estate can survive a later conveyance (again subject to the lease terms and common law)

John T

Yea, I'd get a little worried if your rough document showed up in my mailbox all of a sudden..... That seems like quite a change from what they had and all to your benifit, you might not end up with as many acres as you thought you had if you don't soften that up a little.

Hope you discussed the multi-year ideas with them verbally first, and this is just following up on that.

If you want a 3 year lease with options beyond that, a better way might be to have a clause to renegociate the lease after 2 year period. Kinda like the ball players do, sign a new one before the old one runs out as long as everyone is happy with how things are going. It is a perpetual lease, but renegociated every couple years before it runs out - if either side wants out there is still a year on the old lease to give everyone time.

I guess I'd really question that 'extra year' deal, just the way you word it I'd get scared & not want you on my land at all - seems like a ploy to get something for nothing.

I don't mean anything agaist you at all; just giving you my gut reaction to your words as they come across - something you might want to think on.

You might not want everyone to be on the same expiration year either - if the farm ecconomy changes, you might wish to have some expire in 2 years, others 3, and others 4 if you can swing that. Split up your risk a bit.

Generally if you have a multi year lease in MN, you get to hold that even if the land changes hands. Would be up to your lawyer to word that all legal & proper, but it is a common law thing 'here' that the lease continues.

--->Paul

Talked with owners, we agreed on a 5 year lease for all.

I agree with Paul,Dave in if your lease showed up in my mail.The Owner,NOT the Renter names the terms.As far as the others and leases,My Lawyer once told me that there was not a lease written that could not be broken.Maybe dumb or stupid,but my dad farmed for over 70 Yrs.and I going on 50 Yrs.and NEVER have had a Written lease other then 1 Yr.on one tied up in a 500A. estate.No,I quit renting in 1995,and put half my 1000 in grass(2006) and making as much or more then when I was farming it plus renting.

Sounds good. Looked kinda sudden the way you had it worded, didn't think you would actually do it that way.

--->Paul

because not all states have the same laws, I would contact a local attorney that's familiar with the laws in the state you are in(renting land)
That being said, I would have somekind of contract by all means.. Many years ago I put out 205 tons of lime that I had a verbal contract on ( for many years to) another local farmer offerd the land owner $5.oo more /acre and she took it. long story short, I finally did get my money but it cost me
good luck
Ron