Article Guide
The Farm Lease Agreement 669 form serves as a practical framework for landlords and tenants engaged in agricultural operations. This comprehensive document outlines critical aspects of the leasing arrangement, beginning with the identification of both parties and a detailed description of the property. The form specifies the lease's effective and termination dates, ensuring clarity about the rental period. It also addresses land use, cropping programs, and the allocation of acreage for various purposes such as cultivation and pasture. Moreover, the agreement delineates the financial responsibilities of the tenant, including rental amounts and payment schedules, while stipulating obligations of the landlord regarding property maintenance and improvement. Both parties retain specific rights and privileges throughout the lease term, allowing for periodic inspections and future crop harvesting. Additionally, provisions for amendments, arbitration, and enforcement of agreements are included to protect the interests of both the landlord and tenant. This form is designed to be flexible, enabling customization to cater to the unique circumstances of the lease, while emphasizing the importance of written documentation for changes and agreements. By facilitating clear communication and mutual understanding, the Farm Lease Agreement 669 aims to foster a productive and harmonious landlord-tenant relationship.
Form Sample
Cash Farm Lease Form
This Cash Farm Lease form can provide the landlord and tenant with a guide for developing an agreement to fit their individual situation. This form is not intended to take the place of legal advice pertaining to contractual relationships between the two parties.
Section I. Date, Contracting Parties, Description of Property, and Terms of the Lease
1.This lease is made this _________ day of _____________ 20____, by and between ___________________________________________ hereinafter called the Landlord(s), and _________________________________________
hereinafter called the Tenant(s).
2.The Landlord, hereby leases to the Tenant, to use for agricultural purposes only, the acreage described in Section II, Item 1 (below) on the
__________________________________ (name of farm) farm, containing
________ acres, located in __________________ Township,
_________________ County, State of _________________, described as follows:
________________________________________________________________, with all improvements thereon except __________________________________.
3.This lease agreement shall become effective on the _________ day of
________________, 20______ and shall terminate on the _____________ day of
________________, 20___________. The Tenant agrees to contact the Landlord
_________ days prior to the termination date to consider
4.Amendments and alterations to this lease shall be in writing and shall be signed by both the Landlord and the Tenant.
5.This lease shall not be deemed to be, nor is it intended to give rise to, a partnership relation.
6.The provisions of this lease shall be binding upon the heirs, executors, administrators, and successors of both Landlord and Tenant in like manner as upon the original parties, except as provided by mutual written agreement.
Section II. Land Use and Cropping Program
1.Approximately _______ acres of the farm are to be cultivated, ______________
acres are to remain in permanent pasture, ____________ acres in woods not to be grazed. The tracts that are to be included in respective classes shall be designated by the Landlord at the beginning of this lease.
2.The combined annual acreage of corn and soybeans shall not exceed _______
acres.
3.The extent of participation in government programs will be discussed and decided upon on an annual basis. The course of action agreed upon shall be placed in writing and signed by both parties. A copy of the course of action so agreed upon shall be made available to each party.
4.No permanent pasture shall be plowed without the written consent of the Landlord.
Section III. Amount of Rent and Time of Payment
1.The Tenant shall pay to the Landlord the sum of $_____________ annual rent for the entire acreage referred to in Section I, calculated as follows:
_____ acres of tillable land @ $______ per acre |
$________ |
_____ acres of |
$________ |
Building rent for: dwelling |
$________ |
grain bins |
$________ |
other ________________ |
$________ |
Total annual cash rent |
$________ |
The annual cash rent shall be paid as follows:
$______________ on or before __________________, 20_______
$______________ on or before __________________, 20_______
$______________ on or before __________________, 20_______
If rent is not paid when due, the Tenant agrees to pay interest on the amount of unpaid rent at the rate of _____ percent per annum from the due date until paid.
Section IV. The Landlord Agrees to:
1.Furnish the land and the fixed improvements referred to in Section I.
2.Pay all taxes and the assessments against the real estate and all taxes on the Landlord's personal property on the farm.
3.Furnish materials and labor for mutually agreed upon repairs, improvements, and construction of buildings, drains, and fences on the farm. To pay for materials purchased by the Tenant for purposes of repair and maintenance in an amount not to exceed $_________ in any one year, except as otherwise agreed upon. Reimbursement shall be made within ________ days after the Tenant submits the bill.
4.Furnish _______ % of the limestone used on the farm, together with ______ % of hauling and spreading costs. If the Tenant hauls and/or spreads the limestone furnished by the Landlord, the Landlord shall pay the Tenant the customary rate per ton for such work as agreed upon in writing before the work is done.
5.Replace or repair as promptly as possible the dwelling or any other building or equipment regularly used by the Tenant that may be destroyed or damaged by fire, flood, or other cause beyond the control of the Tenant and, until such replacement or repair is made, to compensate the tenant as follows:
_______________________________________________________________
________________________________________________________________
6.Other responsibilities of the Landlord:
Let the Tenant make minor improvements of a temporary or removable nature, which do not mar the condition or appearance of the farm, at the Tenant's expense. The Landlord further agrees to let the Tenant remove such improvements at any time this lease is in effect or within ________ days thereafter, provided the Tenant leaves in good condition that part of the farm from which such improvements are removed. The Tenant shall have no right to compensation for improvements that are not removed except as mutually agreed.
7.Reimburse the Tenant at the termination of this lease for field work done and for other crop costs incurred for crops to be harvested during the following year. Unless otherwise agreed, current custom rates for the operations involved will be used as a basis of settlement.
Section V. The Tenant Agrees to:
1.Follow the farming practices that are generally recommended for and that are best adapted to this type of farm and for this locality unless other practices are agreed upon.
2.Furnish all labor, power, machinery, and movable equipment and all related operation and maintenance expenses to operate the farm except as follows:
__________________________________________________________
3.Furnish all labor for minor repair and the minor improvement of buildings, fences, and drains with the material to be furnished by the Landlord. The buildings, fences, and other improvements on the farm are to be kept in as good condition as they are at the beginning of the lease, or in as good condition as they may be put in by the Landlord during the term of the lease; ordinary wear, depreciation, or unavoidable destruction excepted.
4.Keep livestock out of the fields when the soil is soft, and protect sod crops, especially new seedings, from too close grazing that might impair the following year's crop.
5.Follow NRCS and/or FSA recommendations and fulfill all other requirements necessary to maintain the rights of current and future tenants of this farm to participate in federal farm programs. Planted acreages and yields of crops shall be reported as required by FSA.
6.Store and use pesticides, fertilizers, and other chemicals, and dispose of containers in accordance with state and federal regulations and recommendations. Furnish the Landlord a written field by field record of the amount, kinds, and dates of applications of pesticides and fertilizers.
7.Store no motor vehicles, tractors, fuel, and chemicals on the farm in violation of restrictions in the Landlord's insurance policies.
8.Apply fertilizer as follows:
|
Corn |
Soybeans |
___________ |
Potash (K2O) no less than |
_______lb/a |
________lb/a |
_________lb/a |
Phosphate (P2O5) no less than |
_______lb/a |
________lb/a |
_________lb/a |
Nitrogen (N) no more than |
_______lb/a |
________lb/a |
_________lb/a |
9.Neither assign this lease to any person or persons nor sublet any part of the real estate for any purpose without the written consent of the Landlord.
10.Not to: a) erect or permit to be erected on the farm any permanent structure, b) incur any expense to the Landlord for such purposes, or c) add electrical wiring, plumbing, or heating to any building without written consent of the Landlord.
11.Control soil erosion according to a conservation plan approved by NRCS; keep in good repair all terraces, open ditches, inlets and outlets of tile drains; preserve all established watercourses or ditches including grassed waterways; and refrain from any operation or practice that will injure such structures.
12.When leaving the farm, to pay the Landlord reasonable compensation for any damages to the farm for which the Tenant is responsible. Any decrease in value due to ordinary wear and depreciation or damage outside the control of the Tenant is exempted.
13.Yield peaceable possession of the farm at the termination of this lease.
Section VI. Rights and Privileges
1.The Landlord or anyone designated by him shall have the right of entry at any mutually convenient time to inspect the property and/or the farming methods being used.
2.The Tenant shall have the right of entry for _______ days after the termination of the lease for the purpose of harvesting spring seeded crops. The Landlord or his designated agent shall have the right of entry to plant fall crops following harvest of the current year's crops.
3.If this lease is terminated before the Tenant shall have obtained the benefits from any other labor or expense he may have made in operating the farm, according to contract or agreement with the Landlord during the current lease year, the Landlord shall reimburse the Tenant for such labor and expense. The Tenant shall present, in writing to the Landlord, his claim for such reimbursement at least
_______ days before the termination of this lease.
4.Transfer of ownership of this farm shall be subject to the provisions of this lease.
Section VII. Enforcement of Agreements and Arbitration
1.Failure of either the Landlord or the Tenant to comply with the agreement set forth in this lease shall make that person liable for damages to the other party. Any claim by either party for such damages shall be presented, in writing to the other party, at least _______ days before the termination of this lease.
2.The provisions of this lease shall be binding on the heirs, executors, administrators, and assigns of the party or parties involved.
3.Any disagreements between the Landlord and the Tenant shall be referred to a board of three disinterested persons, one of whom shall be appointed by the Landlord, one by the Tenant, and the third by the two thus appointed. The decision of these three shall be considered binding by the parties to this lease unless a sum exceeding $________ is involved. Any cost for such arbitration shall be shared equally between the two parties of this lease.
Section VIII. Other Agreements and Provisions
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
Section IX. Signatures
_____________________________________ |
_______________________________________ |
||
(Tenant) |
(Date) |
(Landlord) |
(Date) |
____________________________________________ |
|
||
(Witness of Notary Public) |
|
(Date) |
|
Section XR1. Annual Renewal for Crop Year 20_____
1.Annual rent for crop year 20_____. shall be $____________.payable on the same dates and in the same proportion as specified in Section II.
2.All other agreements in the attached lease are hereby renewed for crop year
20_____. |
|
|
|
_____________________________ |
________________________________ |
||
(Tenant) |
(Date) |
(Landlord) |
(Date) |
Section XR2. Annual Renewal for Crop Year 20_____
1.Annual rent for crop year 20_____. shall be $____________.payable on the same dates and in the same proportion as specified in Section II.
2.All other agreements in the attached lease are hereby renewed for crop year 20_____.
_____________________________ |
________________________________ |
||
(Tenant) |
(Date) |
(Landlord) |
(Date) |
Section XR3. Annual Renewal for Crop Year 20_____
1.Annual rent for crop year 20_____. shall be $____________.payable on the same dates and in the same proportion as specified in Section II.
2.All other agreements in the attached lease are hereby renewed for crop year 20_____.
_____________________________ |
________________________________ |
||
(Tenant) |
(Date) |
(Landlord) |
(Date) |
Section XR4. Annual Renewal for Crop Year 20_____
1.Annual rent for crop year 20_____. shall be $____________.payable on the same dates and in the same proportion as specified in Section II.
2.All other agreements in the attached lease are hereby renewed for crop year 20_____.
_____________________________ |
________________________________ |
||
(Tenant) |
(Date) |
(Landlord) |
(Date) |
Section XR5. Annual Renewal for Crop Year 20_____
1.Annual rent for crop year 20_____. shall be $____________.payable on the same dates and in the same proportion as specified in Section II.
2.All other agreements in the attached lease are hereby renewed for crop year 20_____.
_____________________________ |
________________________________ |
||
(Tenant) |
(Date) |
(Landlord) |
(Date) |
Rev 2/02
It is the policy of the Purdue University Cooperative Extension Service, David C. Petritz, Director, Purdue University that all persons shall have equal opportunity and access to its programs and facilities without regard to race, color, sex, religion, national origin, age, or disability.
Purdue University is an Affirmative Action employer.
*Prepared by Agricultural Economists Craig L. Dobbins and J.H. Atkinson. This form was developed to provide an example that illustrates the items often included in a written lease. The reader should consult with appropriate legal council before finalizing their lease agreement.
Document Specifications
| Fact Name | Description |
|---|---|
| Purpose | This Cash Farm Lease Agreement serves as a template for landlords and tenants to outline their agreement for agricultural land use. |
| Effective Date | The lease becomes effective on a specified date agreed upon by both parties and has a set termination date. |
| Property Description | The form requires detailed information about the farm, including its location, acreage, and any exclusions from the lease. |
| Annual Rent | The tenant agrees to pay a predetermined annual rent based on the type and amount of land being leased, with specific payment dates. |
| Amendments | Any changes to the lease must be made in writing and signed by both parties to be valid. |
| Landlord Obligations | The landlord agrees to provide the land, pay taxes, and cover costs for agreed repairs and maintenance. |
| Tenant Responsibilities | The tenant is responsible for farming practices, equipment, and maintaining the condition of the property during the lease term. |
| State Law | The Farm Lease Agreement is governed by the laws of the state in which the property is located, which can vary; for example, the relevant law in Iowa is Iowa Code Section 562. |
Steps to Filling Out Farm Lease Agreement 669
Completing the Farm Lease Agreement 669 form requires careful attention to detail. Below are the steps to fill out the form accurately. Each section should be approached systematically to ensure that all necessary information is included and clearly stated.
- Fill in the date at the top of the form where indicated.
- Provide the names of both the Landlord(s) and Tenant(s) in the designated spaces.
- Specify the name of the farm and include the total acreage being leased under Section I.
- Identify the location of the property by filling in the Township, County, and State.
- Describe the property, including any improvements and exceptions, as outlined in Section I.
- State the effective date and termination date of the lease.
- Indicate the number of days prior to termination that the Tenant should contact the Landlord regarding lease renewal.
- In Section II, estimate the acres to be cultivated, in permanent pasture, and in woods not to be grazed. Designate these by filling in the relevant spaces.
- In Section III, calculate the annual rent based on tillable and non-tillable acre rates, and add any building rent owed.
- Fill in the payment structure, including payment deadlines and amounts.
- In Section IV, outline the responsibilities of the Landlord, including obligations for taxes, repairs, and improvements.
- In Section V, state the obligations of the Tenant, such as farming practices, maintenance of property, and restrictions on assignments of the lease.
- Section VI details the rights and privileges of both parties; fill in any relevant time frames and rights of access post-lease termination.
- Review Section VII and add any necessary details regarding enforcement and liability of agreements.
- Both Landlord and Tenant should sign and date the agreement at the end.
After completing the form, both parties should retain a copy for their records. This ensures mutual understanding and clarity regarding the terms of the lease agreement.
More About Farm Lease Agreement 669
What is the purpose of the Farm Lease Agreement 669 form?
The Farm Lease Agreement 669 form is designed to provide a clear outline for the relationship between a landlord and a tenant in an agricultural context. It establishes the terms of the lease, including the rights, responsibilities, and expectations of both parties. This form serves as a foundational document, guiding landlords and tenants in creating agreements tailored to their specific situations while ensuring compliance with legal expectations.
What information is required to complete the lease agreement?
Key details must be filled in, including the names of the landlord and tenant, the description of the property, the acreage involved, the effective dates of the lease, and the amount of rent to be paid. This form also includes sections outlining the specific land use, necessary amendments, and obligations for both parties, ensuring all essential elements are clearly documented.
How is the rent specified, and what are the payment terms?
The lease agreement specifies the total annual rent based on the acreage of tillable and non-tillable land, along with any additional building rent. The payment schedule outlines when specific amounts are due, ensuring the tenant knows when to prepare for each payment. If rent is not paid on time, an interest charge applies to the outstanding amount, providing the landlord with a measure of financial security.
What obligations does the landlord have according to this lease?
The landlord agrees to provide the property and necessary improvements, maintain financial responsibilities like taxes, and facilitate repairs and construction when mutually agreed upon. The landlord is also responsible for providing certain agricultural needs, such as limestone for the land, and must promptly address any significant damage to tenant-used buildings or equipment.
What does the tenant need to do as part of the agreement?
The tenant must follow recommended agricultural practices, furnish all labor and equipment, and ensure the property remains in good condition. Proper handling and storage of chemicals should adhere to applicable regulations. The tenant also needs to manage livestock responsibly and maintain compliance with governmental programs related to farming.
Can the tenant make improvements to the property?
The landlord allows the tenant to make minor, removable improvements as long as they don't negatively impact the property’s overall condition. Upon completion of the lease, the tenant has the right to remove those improvements, although compensation for unremoved improvements must be agreed upon in writing.
What happens if either party fails to comply with the agreement?
Compliance is critical for both parties. If one party fails to meet their obligations, they could be liable for damages resulting from this failure. The aggrieved party must provide written notice of their claim at least a specified number of days before the lease ends, ensuring that both parties have an opportunity to address any issues before termination.
Is there a right of entry for the landlord or tenant?
Yes, both landlord and tenant have rights of entry. The landlord can inspect the property and farming practices at mutually agreeable times. Conversely, the tenant can access the property following the lease termination, specifically to harvest spring-seeded crops. This ensures that both parties can manage their needs effectively while respecting the agreement.
How is the agreement enforced and what about arbitration?
Enforcement of the lease agreement hinges on the obligations outlined within it. Any claims resulting from non-compliance must be documented in writing, with a notice period observed before lease termination. The lease also stipulates that its provisions are binding on heirs, ensuring continuity and adherence regardless of changes in ownership.
Common mistakes
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Incomplete Identification of Parties: It is crucial to accurately fill in the names of both the Landlord and the Tenant. Omitting this information can lead to confusion and disputes later on.
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Incorrect Acreage or Property Description: Ensure the description of the property and acres to be leased are precise. Misrepresenting acreage or failing to list the correct farm name can result in legal complications.
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Failure to Specify Rental Terms: Clearly outline the payment schedule and the total annual rent. If these details are vague or omitted, misunderstandings about payment expectations may arise, impacting both parties.
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Lack of Amendments Documentation: Any amendments or changes must be documented in writing and signed by both parties. Failing to do this can lead to enforcement issues regarding agreed-upon modifications.
Documents used along the form
When entering into a Farm Lease Agreement, various supporting documents complement the main contract. These documents clarify responsibilities, provide essential details, and protect the rights of both parties. Here are seven common forms and documents associated with the Farm Lease Agreement 669 form.
- Lease Addendum: This document includes modifications or additional terms that may be necessary after the main lease is signed. It becomes part of the lease and is binding if both parties agree to the changes.
- Notice of Intent to Renew: This form is used by the Tenant to notify the Landlord of their intention to renew the lease upon expiration. It helps facilitate discussions about rent adjustments and any needed changes to the agreement.
- Termination Notice: This document communicates to the other party the intention to terminate the lease agreement. It typically specifies the last date of occupancy and should comply with the notice period outlined in the lease.
- Condition Report: A detailed inventory of the farm's conditions at the start of the lease. This document helps protect both parties by documenting the state of buildings, equipment, and other assets to avoid disputes later.
- Rent Payment Receipt: This form serves as proof of payment for the rent due under the lease. Both Tenant and Landlord should keep copies for their records to avoid misunderstandings regarding payment histories.
- Government Program Participation Agreement: When participating in federal or state agricultural programs, this document outlines the terms and responsibilities for adhering to program requirements, ensuring compliance and eligibility.
- Access Permission Form: This grants the Landlord and designated agents the right to enter the property for necessary inspections or duties. It should clearly define the frequency and purpose of access to foster understanding and reduce conflicts.
Utilizing these documents can lead to clearer expectations and accountability for both landlords and tenants. They are vital for protecting the interests of all parties involved in a Farm Lease Agreement.
Similar forms
The Cash Farm Lease Agreement is similar to the Crop Share Lease Agreement. Both documents outline terms related to farming operations and establish the rights and responsibilities of both landlords and tenants. However, the Crop Share Lease often focuses on sharing the risks and rewards of crop production, where the landlord receives a portion of the crop yield instead of a fixed cash payment. This can foster a collaborative approach to farming while considering factors like market fluctuations and crop performance.
Another similar document is the Pasture Lease Agreement. This form is specifically tailored for agreements involving grazing land. Like the Farm Lease Agreement, it includes details about the land and terms of use, but it emphasizes the management and care of livestock rather than crop production. It typically specifies how many animals can be grazed, the duration of the lease, and any responsibilities related to land maintenance to ensure optimal pasture use.
The Farm Management Agreement is also noteworthy. This document provides a framework for a farm manager to operate on behalf of the owner. Similar to the Cash Farm Lease, it outlines the objectives, financial arrangements, and responsibilities. However, it generally includes broader management authority for the manager to make decisions about planting, labor, and marketing, which can help in maximizing productivity and profitability.
A Cooperative Farming Agreement shares goals with the Farm Lease Agreement, particularly in defining the collaboration between multiple farmers. In this document, several parties come together to share resources, labor, and land. While the Farm Lease focuses on the relationship between a landlord and a tenant, the Cooperative Farming Agreement emphasizes mutual interests and joint decision-making among all involved parties.
The Farm Purchase Agreement comes from a different angle but shares similar elements regarding property use and responsibilities. This document lays out terms for the sale of agricultural land and includes details about the property, price, and closing conditions. Although the focus is on transfer of ownership rather than the rental terms, both agreements serve to define the relationship and obligations associated with farming land.
Lastly, the Lease-Purchase Agreement bears similarity to the Cash Farm Lease Agreement, as it combines leasing with an eventual purchase option. Tenants have the right to buy the property at a specified time during or after the lease term. This agreement maintains elements of traditional leasing but also allows tenants to invest in the property they are cultivating, promoting long-term commitment and responsibility for the land's care.
Dos and Don'ts
When filling out the Farm Lease Agreement 669 form, here are some important dos and don’ts:
- Do: Carefully read and understand each section before filling it out.
- Do: Accurately fill in the landlord's and tenant's names.
- Do: Clearly specify the property details and acreage involved in the lease.
- Do: Ensure both parties sign any amendments or alterations to the agreement.
- Do: Consult a legal advisor if unsure about any terms or responsibilities.
- Do: Keep a copy of the signed agreement for your records.
- Don't: Skip any sections; every part is important for clarity.
- Don't: Assume verbal agreements will hold; always put changes in writing.
- Don't: Leave blank spaces; fill in all required information to avoid confusion.
- Don't: Ignore deadlines for contacting the landlord regarding lease changes.
- Don't: Modify the terms without mutual consent and documented agreement.
- Don't: Forget to follow federal and state regulations concerning farming practices.
Misconceptions
- Misconception: The Farm Lease Agreement 669 form is legally binding without any modifications. While this form provides a solid foundation for a lease, it still requires both parties to customize terms to fit their specific situation.
- Misconception: The Landlord can change the rental amount at any time. The lease agreement stipulates that rent changes must be discussed and agreed upon well before the termination date.
- Misconception: Tenants can make any improvements they want without permission. The agreement specifies that any alterations must have the Landlord's written consent, especially regarding permanent structures.
- Misconception: All types of crops can be planted without restriction. The lease outlines specific crop limitations, particularly for high-quantity crops like corn and soybeans.
- Misconception: The Landlord is responsible for all aspects of maintenance. The Tenant is also required to manage certain repairs and maintain the property, demonstrating shared responsibility.
- Misconception: A Farm Lease Agreement automatically creates a partnership. The lease explicitly states that it does not establish a partnership relationship between the Landlord and Tenant.
- Misconception: Legal advice is not necessary if using the lease form. Although the form provides guidance, seeking legal advice is still important for understanding obligations and rights.
- Misconception: A signed lease guarantees no changes will occur. While the lease is a binding document, conditions and terms can be amended if both parties agree in writing.
Key takeaways
Key Takeaways for Using the Farm Lease Agreement 669 Form:
- The lease is tailored for both the landlord and tenant, serving as a framework to create a personalized agreement that fits specific needs.
- Filling out the essential details, such as the date, names of parties, property description, and lease terms, is crucial for clarity and legality.
- Always keep a written record of amendments or alterations. Both parties must sign any changes to enforce them.
- It's important for the tenant to maintain the property in good condition while following recommended farming practices to ensure compliance with the lease terms.
- Both parties should be aware that they have specific rights and obligations, with clear guidelines for responsibilities such as repairs and rent payments.