Farmland Rental Agreement

A farm lease is a legal instrument that describes this agreement. The lease provides the basis for the combination of the resources of the lessor and the tenant in the country, labor, capital and management to efficiently produce agricultural raw materials. The application of lime to soils contributes to productivity by adapting the acidity of the soil. Lime applications usually last several years. If the current tenant has operated the farm for several years and contributed to the need for lime, he should pay to bring the pH back to a normal level. If it is a new tenant, the owners and tenants must agree. The landlord could pay for the lime or the landlord and tenant could agree to pay the lime fee over a period of 3-5 years on a pro rata basis. If the tenant pays for the lime and the country does not rent for the useful life of the lime, he receives a percentage of the reimbursed lime costs. Some long-term harvesters may share the cost of lime.

Use the computer to discuss rental values with landowners so they are better informed about the challenges on their land and the potential impact on production and profitability of the operation. Producers will then be able to work with landowners to develop a lease that will benefit both parties. Ensure the conservation of hectares for the producer and constant rental income for the landowner for many years. Farmers are generally not used to rejecting arable land, but if paying cash rents takes them out of profitability, 2021 might be the time to do so. You can find information about average rental prices in your county in the report below, based on USDA National Agricultural Statistics Service survey data for Michigan counties. For a copy of this entire series in Factsheet format, please visit the following web address…