I probably see more contracts than the "usual person", and I cannot think of another contract with a buyout clause that I have seen that has as the basis for buyout a return of all of the moneys paid/received todate.

Usually, the contract buyout is based on the unused portion..............the period of time or the money that the other party is not going to have use of.

Take a ten year contract, and the buyout desired is in year 8--------------it's logical that the buyout price is a return to the govt (or user of the land) of the moneys for the prior 8 years???

They had the use of the land to their specifications for eight years...........it is the lack of two more years that is the non-use, the lost portion, the lack of benefit...................so, the "usual" situation is the value of two years, plus maybe a penalty for the pain and suffering of having to find land of similar nature and use, and "moving to it"...........that would be the way a regular commercial setting would be........................but not with the US Govt!

If the govt came to the lessor................and wanted out.........say, for lack of funding............what do you think they would think the buyout should be based on?

It has been a year or three since I have read the CRP agreement, but I do not recall any provision in it for the event/payout when govt wants out.

And..........if I recall, there is a clause for the govt not having to pay if there is a lack of funding...........and if I recall correctly, the contract still stands, ie the land does not come out from under the lease.............the ASSUMPTION being that there would be an ultimate payment eventually by the govt---------but there is no guarantee.

Please correct me if I am wrong.