Under a typical cash lease, the operator will receive all crop income, make all management decisions and pay all crop expenses. The owner will pay land taxes, his/her own insurance and major building repairs. For this, the owner receives a known, stable income and is freed from farm management responsibilities.
A Cash Farm Lease with Farm to be used only for Production of Crops is a type of agricultural lease whereby a tenant pays a cash rent to a landlord for the use of land to produce crops. This type of lease is beneficial to both the landlord and tenant, as it eliminates the need for the tenant to purchase land, and in return the tenant is expected to produce and market a crop for a certain period of time. There are several types of Cash Farm Lease with Farm to be used only for Production of Crops. These include a Cash Farm Lease with a Fixed Term, a Cash Farm Lease with a Variable Term, and a Cash Farm Lease with an Option to Renew. In a Cash Farm Lease with a Fixed Term, the tenant is usually required to pay a set amount of cash rent for a fixed period of time, often up to three years. In a Cash Farm Lease with a Variable Term, the tenant pays a cash rent at the beginning of each season, and the rent can vary from season to season. Finally, in a Cash Farm Lease with an Option to Renew, the tenant is required to pay a cash rent for an initial term, and has the option to renew the lease for an additional term at the end of the initial term.
