Land is leased for livestock grazing in practically all parts of the state. Many people that own land lease the grazing to someone else that owns the livestock. Leasing land to another person for grazing can benefit both the landowner and the leasee. According to Extension Specialists all agricultural leases should be in writing to ensure that they are enforceable, to record the parties’ understanding, and to protect both parties’ rights. All parties, landowners and leases should consult their own attorney when entering into a grazing lease.
It is recommended that grazing leases should include the following information based from a landowner’s view point:
Names of the parties and addresses
Duration of the lease: Specify the length of the lease (month or years). Will the lease be automatically renewed? Does the lease include a specific notice of intent not to renew by either party?
Description of the land: Use legal meters-and-bounds description.
Stocking limitations: Ex. number of head, species of animal permitted plus are other animals allowed to be kept on the property.
Price: Per acre, per head, per animal/unit.
Payment method: Can be in any manner agreed upon by the parties.
Failure to pay: Is there a clause about late payments? Is there a clause that ensures the right to terminate the lease?
Security deposit: Is there a clause to cover damages, improvements, fences, crops, etc?
Access to the land: State how the leasee is to access the property, designated entrance points, roads permitted to use.
Use of vehicles or ATV’s: State whether the leasee is permitted to use vehicles or ATV’s on the property.
Requirement that gates be closed: Is there a requirement that leasee is liable for death/injury of any livestock or damages to a third party cause due to a gate being left open.
Use and repair of facilities on the property: Use of any facilities including barns, buildings, houses. Describe who will be responsible for making repairs.
Inspection of fences: Address who will be responsible for inspecting repairing fences.
Right to erect improvements on the property: Address whether leasee has the right to erect/build any improvements on the property such as fences, buildings, water delivery systems.
Landowner’s right to the property: Cover whether the landowner wants to retain rights to the property, including the right to hung.
Other surface users: Identify all surface users such as oil/gas companies.
Care of livestock: Expectations for livestock care. Who provides what.
Transferability: Can the property be subleased.
Damages to the property: Prohibit damage and require the leasee to repair/pay for damages.
Attorney’s fee: Include a provision that if the landowner is successful in a dispute with the leasee, the leasee is responsible for land owner’s attorney fee.
Leasee insurance: Require leasee to maintain liability insurance.
Liability and indemnification: In case the landowner is sued as a result of the leasee’s conduct.
Other possible items could also include: Choice of law, forum clause, dispute resolution clause, and a confidentiality clause.
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