Review the sample leases in the Maryland Ag Leasing Booklet attached.
Using the facts below, draft a farmland lease. The lease should also include general provisions regarding modification of the lease, notice, and governing law.
Fact Pattern:
Arthur Hollis and Ava Benning both live in the town of Washington, located in Armstrong County in the state of West Lafayette. Arthur is a retired farmer and wishes to keep his land as an active farm. Ava is a local young farmer and has approached Arthur about renting his land. The property is adjacent to Arthur’s home, which is located at 1475 State Road W, Washington, West Lafayette 46997. It is 130 acres, and Ava intends to rent the entire property. The land is of relatively good quality, so Arthur asked for $225/acre annually. Ava is fine with this price but cannot pay it upfront. She and Arthur negotiated and agreed upon two lump sum payments, split six months apart, which will allow Ava to get payment for some of her crop yield before rent payments are due.
Arthur is very conservation-minded, and wants the lease to include specific references to land stewardship and conservation. Particularly, he does not want any livestock grazing or having access to the land or any waterways through the property. Additionally, he thinks Ava should have to implement best management practices and follow generally-accepted practices of other farmers in Armstrong County. He is requesting a right of entry with no notice to make sure these practices are being followed, as well as continuous access for hunting and fishing.
For Ava, the most important factor is retaining access to the land; she does not want Arthur to potentially sell the property and lose any crops she is actively growing. She has requested the lease be for 2 years, with an option to renew for up to 5 one-year terms without signing a new lease. Additionally, if Arthur does decide to sell the property, she is asking for a right of first refusal, with at least 30 days’ notice prior to any public listing of the property. Finally, if she does not exercise this right, she wants to ensure any future owner will abide by the remaining time on the lease and give her the ability to complete any growing and harvest cycle she is currently in.
Party information:
Arthur Hollis
1475 State Road W Washington, WL 46997
Ava Benning
3914 State Road X Washington, WL 46997
Drafts lease including all of the following:
● Property location and size description
● Proper party identification
● Cost of lease and payment terms
● Conservation statement
● Right of re-entry for Lessor
● Lease term
● Right of first refusal for Lessee
Format lease with general provisions including all of the following
● Section headings
● Lease modification
provision
● Notice provision
● Statement of
governing law
The assignment is free of spelling, grammar, or punctuation errors Proper citations are
included.
