Simple land rental agreement

L.C. Gray

Member
I've been letting a friend run some cows on my place for several years for free with the basic aim of getting the ag exemption on my land. With the drought last year he pulled his cows off and sold most of them and has yet to put anymore on, nor does he seem eager to at this time. I am wanting something on the place soon to not have to hassle with the tax office (yet again) pulling my ag use. Therefore I have decided to seek a tennant. The money isn't really important, I just want the ag use, but I know if I advertise it as "free" there's no telling how many kooks I'll have to wade through. I am advertising it on CL at about half the going rate I have seen in the area and I want to be prepared for the unknown person that I will eventually have to deal with. I'm usually good with handshake deals, but they can turn into a long term nightmare on a rental agreement. What I'm looking for is a simple land lease agreement I can use to protect myself in case I happen across a BTO or general moron. I think my biggest fear is of someone putting a bunch of cattle out here then not paying the rent or caring for them adequately and I'm stuck with what to do about them. Does anyone know a place on the net to send me or have a simple form they could e mail me to work from?
 
Chances are your Extension Office or local bank has generic forms. You can add your own specific concerns. Do you have a family lawyer? Mine just sent a generic Purchase Agreement form via internet for our use, for a land sale to our son.
 
If the money's not important, I'd just figure out the minimum to keep your tax evasion and put your own animals on there.... Sure save on a lot of landlord/tenant issues and legal fees......If your fences are good, just stick something on there that doesn't need a lot of husbandry and relax... Save you fixin everything after bubba runs his course.......
Especially if it's on your home place, you'll have some stranger hanging around casing out your stuff.....
 
Agree with JM - we get a basic copy from our bank. There is an area on it in which you can add your own details... we say: no hunting, no canning company crops, mow field lane and waterways.
 
If you have access to a computer :<), you could just do a search for "sample land lease agreement" and print out one that suits your fancy.
 
Just be sure you get a really simple, short one. All on one page, preferably. Heaven forbid you get one that actually has enough meat to protect you- why, that would be several pages long! Think of the paper and copier cost! LOL

When people ask me for a good, one page lease, I always ask, which do you want? Good, or one page? They're mutually exclusive.

Ag leases, especially involving livestock, can be a nightmare. The suggestions for getting your own cattle (5 weight steers in the spring, let 'em eat until the pastures gone, send 'em to the sale) or having someone hay it makes more sense.
 
L.C., Here in Texas In drought situations a person is allowed to "Rest" a Ranch, Pasture, given acres for up to 3 yrs without hassle from the Tax Office. As long as there is still sign of Live stock in the past, old Cow Pies,Hay residue, Tracks and the like.
The "Rest" will allow grass to reestablish itself and get going again and get the pasture back to where it should be. If you are not at a point to where that will apply in your state then,, "Summer" some Livestock for the shortest period possible to say you had livestock on the place in 2012.
You can stipulate #of livestock/acre in a regular yr. In a Drought condition, if it persists, then a declining grazing rate till the livestock must come off in the fall.
If the owner fails to honor your rules in the contract, You always hold the option of opening the gate and running the Livestock out in the R.O.W. / Or load them up take them to the Sale Barn and leave them there in HIS name, to get them off your place AND You will be Held Harmless in the hold deal. YOU STIPULATE the Rules here Not the Tenant. Even if it is Free to them and your gain is the Tax classification as AG and not Commercial. Hope this helps.
Later,
John A.
 

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