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“The term of the lease shall be _____years, commencing on the ______ day of _________, 20__, and shall continue in effect from year to year thereafter unless written notice of termination is given by either party to the other at least ____ days prior to expiration of this lease or the end of any year of continuation.
If tenant is going to continue on the pasture discussion between landlord and tenant is necessary to evaluate how much the capacity has decreased, plus how much each is willing to put into restoration.
The tenant will be able to increase numbers with restoration
The landlord will gain increased property value with restoration
Specifically state that a partnership is not being created
Partners are liable for each other’s debts and obligations
Example – “This lease shall not be deemed to give rise to a partnership relation, and neither party shall have authority to obligate the other without written consent, except as specifically provided in this lease.”
Example – “The terms 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 otherwise.”
“ The landlord, as well as agents and employees of the landlord, reserve the right to enter the farm at any reasonable time for purposes (a) of consultation with the tenant; (b) of making repairs, improvements, and inspections; (c) after notice of termination of the lease is given, of performing customary seasonal work, none of which is to interfere with the tenant in carrying out regular operations. Landlord also may request right of entry to hunt and fish.”
Example – “The landlord reserves the right for family members and friends to be allowed to hunt on the property. If the tenant sells hunting rights to a third party or to the public, the landlord hunting rights for family and friends will be reserved. The landlord will receive 50% of any income from the sale of hunting rights. If the sale of hunting rights is to a third party outfitter, the outfitter shall pay 50% of the agreed upon fee directly to the landlord.”
The lessee receives the improved harvest during the lease, but the landlord receives improvement to property
Example – “The costs of establishing hay or pasture, new conservation structures, or improvements (except as identified in other sections of this lease) shall be the cost and responsibility of the tenant.”
If the tenant is using any buildings, will they need to provide upkeep?
Example – “The tenant agrees to provide the unskilled labor necessary to maintain the farm and its improvements during the tenant’s tenancy in as good condition as it was at the beginning. Normal wear and depreciation and damage from causes beyond the tenant’s control are excepted.”
Example – “The tenant shall not (1) erect or permit to be erected on the farm any non-removable structure or building; (2) incur any expense to the landlord for such purposes; or (3) add electrical wiring, plumbing, or heating to any building without written consent of the landlord.”
If buildings are present, lease needs to specify which the tenant can use
Example – “This lease does not include the use or occupancy of the dwelling or any other buildings upon the property by the tenant. The landlord reserves the right to use or lease such dwelling and buildings to other parties as the landlord sees fit. The tenant will allow free access of the landlord or tenants thereof to such dwelling and/or other buildings.”
“ The landlord shall not be responsible to replace or repair the dwelling or any other building regularly used by the tenant that may be destroyed or damaged by fire, flood, or other cause beyond the control of the tenant. Any replacement shall be determined by written agreement between the landlord and tenant. The landlord shall not be responsible for any property or belongings of the tenant. It is advised that the tenant carry tenant insurance on any such property and/or belongings.”
Example – “The tenant may make minor improvements of a temporary or removable nature, which do not mar the condition or appearance of the farm or ranch, at the tenant’s expense. The landlord agrees to let the tenant remove such improvements even though they are legally fixtures at any time this lease is in effect. The tenant shall have no right to compensation for improvements not removed except as mutually agreed.”
“ In order to operate the farm efficiently and maintain it in a high state of productivity, the tenant agrees to use diligence to prevent noxious weeds from going to seed on the farm. Treatment of noxious weed infestation and cost thereof shall be paid _____ percent by the landlord and _____ percent by the tenant. Noxious weeds will not be allowed to spread or increase beyond present conditions. Control will be maintained subject to inspection and advice of ________ County Weed and Pest.”
Agreements with NRCS, FSA, Forestry, Weed & Pest, etc.
Example – “The tenant agrees to use the land in such a manner as meets government agency regulations. The ranch is covered in a cooperative agreement between the landlord and NRCS, FSA, and Wyoming State Forestry, and the tenant agrees to operate the farm in accordance with these agreements.”
Example – “Neither party hereto shall pledge the credit of the other party hereto for any purpose whatsoever without the consent of the other party. Neither party shall be responsible for the debts or liabilities incurred, or for damages caused by, the other party.
“A. Any differences between the parties as to their several rights or obligations under this lease that are not settled by mutual agreement after thorough discussion shall be submitted for arbitration to a committee of three disinterested persons, one selected by each party hereto and the third by the two thus selected. The committee’s decisions shall be accepted by both parties.
“B. If any party willfully neglects or refuses to carry out any material provision, the other party shall have the right, in addition to compensation for damage, to terminate the lease. Written notice shall be given to the party at fault specifying the violations of the agreement. If violations are not corrected within 30 days, the lease shall be terminated.”