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 Provisions for Improving, Conserving and Maintaining Farm is a type of agricultural lease agreement in which the landlord grants the tenant the right to use the farmland for agricultural activities in exchange for a cash payment. The tenant is also responsible for maintaining, improving, and conserving the land. The provisions of this type of lease may include specific obligations to improve and maintain the land, such as installing fencing, dredging, or planting cover crops. Other provisions may include conservation practices such as soil erosion control or water management. Different types of Cash Farm Lease with Provisions for Improving, Conserving and Maintaining Farm include fixed cash leases, share leases, and hybrid leases. In a fixed cash lease, the tenant pays a fixed amount of money for the use of the land. In a share lease, the tenant pays a share of the crop produced on the farm to the landlord. In a hybrid lease, the tenant pays a combination of cash and crop share.
