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Renter Contracts

gundog870

Premium Platinum Member
For those of you that own land, how do you handle your agreements with those that rent the tillable/pasture from you? Do you do a written contract? Is it yearly, when are your getting payments, etc.
 
The guy that rents mine had his standard contract that I just looked over and used. its a written contract and I get paid once a year in December. I'm in WI and anything over $600 you have to report as income so he sends me a W2 or whatever it is in January for taxes.
 
I do a written contract annually. Usually get payments 3/1 and 9/1 unless they want to do it all at once on 3/1.

I do annually so there is the opportunity to not renew should you be unhappy with something they do such as not pay you on time, let livestock roam fields without prior consent, do something against your wishes, etc.
 
For most the ground I rent as a farmer, I have a written contract which is usually written up by the landowner's attorney. If you wanted to write up your own, Iowa State Extension has some simple forms on their web site too. Although, I have other ground where our contract is just an oral agreement. Some landlords write up a new contract every year while most leave it alone unless they change the rent. Legally, no changes can be made to a lease after Sept 1st, but most farmers I know will let that slide. I usually have to pay half in March and the other half in October. Some I pay the full amount in October. This is all for tillable acres, I couldn't tell you how pasture rent is handled.
 
Something I found out this year is that hunting rights go with the person renting the ground unless stated otherwise in the contact. Just something to think about.
 
Written contract for 2 years at a time. Cash rent paid on or before April 1

I always add that I will retain all recreational use/hunting of the property.
 
Something I found out this year is that hunting rights go with the person renting the ground unless stated otherwise in the contact. Just something to think about.

I believe this is true too based upon previous research. Be sure to spell out your wishes in a written contract that you(land owner) maintain hunting/fishing rights to avoid any snags later.

I too have used the sample forms from the Iowa State extension office.
 
Legally, no changes can be made to a lease after Sept 1st, but most farmers I know will let that slide.

It's been a while since we rented out ground, but isn't there a deadline that you have to notify the tenant that you will not be renewing the lease for the next year? Is it Sept 1?

Something I found out this year is that hunting rights go with the person renting the ground unless stated otherwise in the contact. Just something to think about.

When we did rent, we wrote it right on the agreement that we maintained hunting rights.
 
Yes, It's September 1st. Although 5 years ago my dad pulled up to a farm field in the spring to cultivate and the owner came running out to him to ask what's he's doing there. The land owner said he had already renting this piece out to his nephew for the season. My dad had rented this ground for 25 years on verbal agreement. Get everything on writing!
 
Yes, It's September 1st. Although 5 years ago my dad pulled up to a farm field in the spring to cultivate and the owner came running out to him to ask what's he's doing there. The land owner said he had already renting this piece out to his nephew for the season. My dad had rented this ground for 25 years on verbal agreement. Get everything on writing!

Also, rule applies to rental contracts of 40 acres or more.

If you have a 13 acre parcel (for example) rule would not apply
 
Something I found out this year is that hunting rights go with the person renting the ground unless stated otherwise in the contact. Just something to think about.
Does that mean a renter of 40 tillable acres has the hunting rights to the 10 acres of woods on the same piece? I understand if they are hunting the 40 tillable. I remember a time when we used to shoot a few pheasants out of a picked field.
 
I wrote one up & then had my attorney look it over. I'm happy to post what I have if anyone wants.
 
Sligh1, yes, please post your contract. I have a new farm and want to get a written contract in place. Past owner just did verbal as did we last year. Thanks
 
We've had this discussion on here before, but here is a thought. I have both rented ground and rented out my ground for farming purposes. Lets say a property is 200 acres with 120 farmed. When i rent out that ground im renting the farmer 120 acres and getting paid for 120. The other 80 acres of timber, the renter has no interest in, has no money in and no rights. So hope they field hunt geese.
 
We've had this discussion on here before, but here is a thought. I have both rented ground and rented out my ground for farming purposes. Lets say a property is 200 acres with 120 farmed. When i rent out that ground im renting the farmer 120 acres and getting paid for 120. The other 80 acres of timber, the renter has no interest in, has no money in and no rights. So hope they field hunt geese.

If you keep the hunting rights and recreational rights, they would have no right to hunt the tillable either way.

I've never have never had an issue with this, if they demand it, get someone else to farm it.
 
If you keep the hunting rights and recreational rights, they would have no right to hunt the tillable either way.

I've never have never had an issue with this, if they demand it, get someone else to farm it.

Right, I was just pointing out a common misconception.
 
It is, I guess when looking back some of the farm renters get touchy if they see you on ground they farm

True, I have witnessed some "touchiness" personally over the years, mainly through other peoples' situations. Especially if you are, OR they suspect that you might be, cutting ruts in a field, leaving gates open, shooting "their" deer/pheasants or anything like that.

Best to get in clear in writing so there are no assumptions or misunderstandings down the road.
 
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