Rachel RespondsSeptember 21, 2018

Who takes care of what in a farmland lease arrangement?

Question:

Who normally takes care of things like property taxes, insurance, water, etc. in a farmland lease arrangament? Is it the owner or the farmer?

Answer:

Normally, the landowner takes care of property taxes and assessments, property insurance, major repairs, and the maintenance of common areas on the land (especially if other parties have access to the land). And normally, the farmer takes care of taxes on agricultural production and sales, property and liability insurance, minor repairs, maintenance, utitlieis, conservation practices, organic certification, and other such operational details. Of course, we said "normally." Farmers and landowners can come to whatever agreement works best for them. every farm, farmer, and landowner is different. The best way to make sure everyone is on the same page is to communicate those expectations, work through any differences, and put it all in writing in the form of a clearly written lease.

FOR MORE INFORMATION: Farm Commons has a Lease: Who's Responsible? tipsheet that addresses these questions. 

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