By using the US L&M, LLC program, farmers will have increased opportunity to locate and lease appropriate properties within a chosen area; landowners may explore lease options and negotiate terms with existing tenants or offer properties to a greatly expanded market in an open and fair competition to secure qualified tenants.
The property lease is the most basic and important component of the tenant farming operation. Although there are some who will say that a written lease is not necessary, nothing could be further from the truth. The Lease Agreement is a basic agreement, outlining all terms and conditions of the tenancy upon leased land for the protection and benefit of all parties. If at any time during the term of the Lease, any question arises that either party must have answered, the Lease is available as an ongoing reference source to clarify and define any situation. Once the Lease terms are negotiated and established, the plan of operation is in place and can be maintained with minimum effort, giving assurance to your tenant, you and your family of fair treatment and ongoing protection against unscrupulous business practices. (Lease contract sample)
By offering land through open competition, you will receive the advantage of doing business with an increasing market of well informed and knowledgeable farm operators, with all parties having access to expertly researched and documented current market rates. The majority of crop share leases in existence today have been modified or significantly edited to ensure that the terms are competitive with current market rates. Surveys which in the past were relied upon to establish rents are indications of rents being paid at the time of the survey with very little market driven data to support the numbers. It is widely understood that most of the rents reflected in the recently released surveys are 20% to 40% lower than fair market value in today’s market.
Land ownership is a business and keeping business at a professional level is the best strategy. You will be secure in the knowledge that your affairs have been attended in a responsible and informed manner, ensuring the respect and security of you and your family.