FARM LAND LEASE
A land lease–also called a ground lease–is a lease agreement that permits the tenant to use a piece of land owned by the landlord in exchange for rent. Land leases work very similarly to the way traditional property leases operate, and tenants can enter into both residential and commercial agreements.
Most land leases are vacant, allowing the tenant to construct a temporary (or in some arrangements, permanent) structure at his own cost. However, some land leases do already have structures, partial structures or other objects on them for the tenant’s use.
A farmland lease is an arrangement where a farmer who does not own enough suitable land to raise crops leases farmable land from someone else. Farmland leases are the most common types of land leases in areas where farmable land is a hot commodity.
Landlords that own large plots of farmable land often lease their plots to tenants when they have no interest in farming the land themselves. Farmland leases may allow tenants to raise livestock or keep animals such as horses in areas where sufficient space is not readily available or affordable.
WHAT DOES A LAND LEASE INCLUDE
- Length of the lease
- Annual payment and payment procedure
- Details of the land use and the upkeep of the land
- Treatment of Basic Payment Entitlements
- A clause preventing subletting
- The lease must be stamped by Revenue and registered with the Property Registration Authority by the solicitor involved.
- It is important that the lease agreement satisfies the needs of both the lessor and the lessee, e.g. the upkeep of fences or hedges on the farm, payment of water charges etc. The responsibility for this should be clearly stated in the lease.
- One major plus for this legally binding agreement is that it removes the fear of “squatter’s rights” from the land owner’s mind.