Colorado Lease Agreement for Surface of Lands, Grazing, and Livestock Operations
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FAQ
The traditional share arrangement for a grain crop like corn or wheat is one-third to the landowner and two-thirds to the tenant. Usually, the expenses paid, and crop received, are equal to the share ? i.e. the landowner would pay one-third of the expenses and receive one-third of the crop.
Tenant farmers and sharecroppers often ended up in cycles of dependency on their landlords and rarely ever worked their way out of debt and into owning their own land. Both types of farming focused on cash crops, such as tobacco and cotton, due to the thin profit margins for the farmers.
In a crop share agreement, landowners typically pay all of the land taxes and irrigation equipment ownership expenses[1]. They also pay the agreed-upon share of the crop insurance, and ?yield increasing inputs? like fertilizer, insecticide, fungicide and herbicide.
Under a Custom Share Lease, the landowner provides all of the land and inputs and receives 75%-80% of the crop. The farm tenant provides the equipment and labor and receives 20%-25% of the crop in return for their contribution. The lease typically has higher returns than the normal 50/50 crop share lease.
Crop-share arrangements refer to a method of leasing crop land where the production (crop) is shared between the landowner and the operator. Other income items, such as government payments and crop residue, are also often shared as are some of the production expenses.
Average cash rent for irrigated cropland in Colorado was $175.00 per acre in 2022, up $15.00 from the previous year. Average cash rent for non-irrigated cropland was $34.00 per acre in 2022, up $1.00 from the previous year. Average cash rent for pasture was $6.20 per acre in 2022, up $0.30 from the previous year.
Pastures are those lands that are primarily used for the production of adapted, domesticated forage plants for livestock. Other grazing lands include woodlands, native pastures, and croplands producing forages.
A land lease, or ground lease, is a agreement in which a lessee owns entities or improvements in a designated area, but doesn't own the actual land.