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A simple cash rent lease agreement?
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Mike SE IL
Posted 1/22/2018 23:01 (#6524788 - in reply to #6524275)
Subject: RE: A simple cash rent lease agreement?



West Union, Illinois

You can get a sample from the University of Illinois Farm Docs page.  Search for cash rent form and several possibilities will come up.

The contract needs to cover who (the parties involved) where (the property) what (the expectations and responsibilities) and when (when rent is due, when they have to notify you the lease is not being renewed, when you have to be off the property). But it also needs to address the what-ifs.

I have mixed feelings on a lengthy multi-page form.  If everything is good one piece of paper will outline everything you need.  It's just a reminder of what you both agreed to.  But if things get bad, such as a landowner dies and a lawyer gets involved, an landowner becomes more difficult to deal with, ground is sold, etc. (btw been there, done all that, this is experience talking) you want every detail spelled out to the jot and tittle.

When I was a seed company DSM we had a multi-page dealer agreement.  A prospective dealer asked what it all meant?  I told him if we both were happy it didn't mean much because we were going to do everything we could to make it work.  But if he tried to pull a fast one on us we'd make every word count. He laughed and signed it and we got along great. Same principle holds here.

What if someone starts feeding an elderly landowner a line about how you are taking advantage of him?  What if the landowner dies in the middle of planting and the new owner sells it without saying a word to you?  What if you decide this just is not working out and you don't want to rent it next year?  You can't cover every possibility but you can in some way address what might happen. That's why it goes on and on and on in fine print.

We had a simple share crop agreement Dad and the landowners agreed to 30+ years ago. It said what, when, and where and everyone was happy.  When the owners died they changed the names from the parents to the daughter, signed it and everyone was happy.  When dad died we changed it from his name to mine, signed it and everyone was happy.  When the daughter died I had to explain to the executor (a genuine Chicago lawyer) that he had not notified us in time and if we wanted to push it we were going to farm it next year. I don't know if it would have stood up in court because our short agreement had not covered that possibility, but he didn't know ag law and said OK, signed it and we got along for 5 years until the estate was settled.

edit: OK I think I have all the typos fixed



Edited by Mike SE IL 1/22/2018 23:04
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