Every time we sell real estate in Nebraska, when there is a farm lease, there are questions about the rights of the landlord and the tenant. When a landowner is considering selling his land and there is an oral farm lease, the termination of the lease for the following year is September 1. In order to educate, inform and protect both parties under a framework lease, the introductory paragraph of an August 2015 article written by J. David Aiken, a water and agriculture law specialist at the University of Nebraska-Lincoln, follows. The Farm Lease Agreement is designed to protect the interests of the landowner. It describes how the country can be used, the state in which the country should be at the end of the lease, the owner`s option rights, insurance requirements and default conditions. Information for lenders and operators on current leases, leasing considerations and trends, trading methods and operating succession, presented in short segments by theme. To be honest, you can calculate everything the tenant accepts (which may be in everyone`s best interest or not), but to determine a fair rental amount, you must offset expenses (both parties) and potential earnings. Ideally, both parties will meet their expenses and both will benefit. If you are considering a long-term agreement, you should try to ensure that the tenant can properly preserve your country and afford day-to-day expenses in order to bring future income.

Please take note of the attached document for the farm rental article; J. David Aiken, Water – Agricultural Law Specialist Once you and the tenant agree to the terms, it is set in stone for the duration of the contract. If yields or prices are low this year, the tenant takes the most risks if it`s a bumper year and prices are good, you won`t be able to take advantage of the excess profit. If you want to cover some of the risk/benefit of the crop or livestock, you can enter into a crop-share lease. For this type of leasing, you should contact a lawyer to make sure your agreement complies with your specific requirements. It is recommended that the arable land lease be terminated by letter recommended ™. This means that the person receiving the letter proves that the termination was made. Many land leases, especially between family members, are not written, but are verbal “hand-shake” agreements. As nothing is written, the parties may have different memories of their agreement, which complicates the resolution of rental disputes. The most common legal question with respect to verbal farm leasing is how a lease can be legally terminated.