California Civil Code permits a farm owner to lease farmland to a tenant using California Farm Cash Lease Agreement. Such leasing is ideal for young farmers as they can avoid initial investments. In addition, renting farmland is very common in California. Typically, farmers prefer either cash rent or crop sharing with the tenant. However, both parties may mutually arrive to any other plausible option like livestock sharing, labor sharing, or flexible rent. Various methods are available to determine rent sharing.
Important Considerations
- The tenant is responsible for maintaining the insurance in good standing throughout the lease tenure.
- Both parties may choose premature termination of the lease by serving a 30-day notice to the other party.
- Please enclose Exhibit A containing a property map and description along with information about access routes.
- Please review the document carefully as its 7 articles have important information about binding terms and conditions for a landlord and a tenant.
- California law governs this leasing transaction. Both parties must resolve litigation if any only in federal and state court for the respective county of California State.
Steps to Fill In Information in California Farm Cash Lease Agreement
This 7-page document requests information about mutually agreed terms and conditions from a landlord and the tenant. In addition, preparing and enclosing Exhibit A containing a property map and description along with information about access routes is mandatory. Therefore, provide following information together.
- Date of execution
- Name of the county
- Total area of the farmland in acres
- Article 1 – Date of commencement and termination of the lease. Typically, such lease has one-year term. Please specify rent amount in words and figure.
- Article 5 – Insurance liability limits for aggregate and single occurrence of bodily injury or property damage liability
- Article 6 – Please specify the number of days permitted for delayed payment of rent to a landlord by the tenant. A landlord has the right to terminate the lease contract if the tenant fails to remit the rent within the permissible grace period.
- Print names, addresses, and signatures of the landlord and the tenant
- Notarization of signatures is not necessary for the legal standing of the lease agreement.
