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FARM LEASE AGREEMENT

          THIS AGREEMENT, dated this 1st day of March, yr 19961, by and between Ole Johannson Farm Corporation2 of 3624 Dew Street, Minneapolis, Minnesota3, hereinafter referred to as the FIRST PARTY, and Fred Farmington4 of RFD Owatona, Minnesota5, hereinafter referred to as the SECOND PARTY, recite the following terms and conditions:
          1. LEASED PREMISES: The FIRST PARTY, in conjunction with the conditions contained herein, does lease to the SECOND PARTY the following described real estate, which is located in Hennepin6 County, Sate of Minnesota7:

160 Acres, more or less, legally described as:
The Northwest Quarter of Section 86, Township 4, Range 6
8.

          2. LEASE PERIOD: This lease shall commence on the 1st day of April, yr 19969, and shall continue for 210 year(s), ending on the 31st day of December, yr 199711. If this agreement is not terminated by either party in conjunction with the terms and conditions contained herein, it will automatically be renewed under the same terms and conditions for a period of one year, and if the lease is not renewed at the end of that year, it shall continue on a year-to-year basis under the same terms and conditions, providing same is not terminated or modified in writing by the parties.
          3. RENTAL TERMS12: The SECOND PARTY agrees to pay the FIRST PARTY as rent for the above-described real estate at the address of the FIRST PARTY, according to the following:

A. The sum of $9,200 on April 1, 1996;
B. The sum of $10,000 on November 1, 1996;
C. The sum of $9,200 on the April 1, 1997; and
D. The sum of $10,000 on November 1, 1997.

 

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          4. CROP PRESENTATION: The SECOND PARTY shall prepare annually a crop plan and shall present same to the FIRST PARTY on or before the first day of February of each year during the terms of this agreement. The crop plan shall provide a rationale for crop rotation, soil preservation and conservation; the means by which tilling will occur; a soil erosion control plan that includes maintenance of water courses, waterways, ditches, drainage areas, tiles, etc.; and a method of crop production, which allows for proper crop rotation during various crop seasons. The SECOND PARTY shall also provide annually a presentation as to the manner in which all crops will be harvested, cultivated and fertilized. Any use of commercial fertilizer, pesticides, insecticides and use of mineral additives to the soil will need to be included in the crop plan provided annually by the SECOND PARTY for the review and approval of the FIRST PARTY. Any use of potash, phosphate, urea, dap, lime and other trace materials shall be included in an allocation plan during the term of the lease and a proposal by the SECOND PARTY to the FIRST PARTY and shall include a proposal relative to the payment of any minerals, etc. In the event the SECOND PARTY fails to perform in conjunction with the terms of this agreement or in conjunction with the crop presentation plan, as noted above, the FIRST PARTY reserves the right to enter the premises and allow for the proper care and harvest of all crops with appropriate costs for such care and harvest to the SECOND PARTY.
          5. PREMISES CONDITION: Tenant shall always maintain the best practices relative to the condition of the premises including all land and buildings, fences, roads, tiles, wells, lagoons and other facilities that are a part of the premises13.  The SECOND PARTY shall assure that the above-leased premises is maintained in good order and good condition. The premises must always be in substantially the same condition as received by the SECOND PARTY from the FIRST PARTY at the time this lease commenced.
          6. MACHINERY USE AND EQUIPMENT USE: The cost of all machinery and equipment usage on the premises shall be at the expense of the SECOND PARTY, and such expense shall include the costs of all combining, shelling, harvesting, bailing and/or otherwise acquisition of crops from the premises. The maintenance and cost of the machinery, including all and any repairs, shall be paid by the SECOND PARTY. The SECOND PARTY, however, shall be permitted to use all

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Copyright © 1994 - 2015 by LAWCHEK, LTD.

 

 

buildings on the premises for storage of equipment and machinery with the exception of the following:

14

          7. SITE CARE: The care of all buildings, roadways, trees, shrubs, grass, utility lines and other features placed upon the above-described real estate shall be preserved and provided appropriate care by the SECOND PARTY; however, the application of paint, carpentry items and other repairs shall be paid by the FIRST PARTY on receipt of notice from the SECOND PARTY. Any such needs for repairs such as carpentry and/or paint, etc., should be paid by the FIRST PARTY after appropriate notice from the SECOND PARTY and after approval by the FIRST PARTY.
          8. TERMINATION15: As provided in the provision relative to the term of the lease noted above, the period of this agreement is for approximately 216 year(s). It may be renewed, if not terminated by either of the parties, for an additional 2 years approximately17 year periods, if a new written lease agreement is not signed between the parties. This agreement shall automatically become null and void if the parties prepare an agreement to supersede this document or if the FIRST PARTY terminates this agreement for the failure of the SECOND PARTY to comply with any of its provisions. Notice of any failure to comply shall be provided by the FIRST PARTY to the SECOND PARTY immediately upon learning if non-compliant, and the SECOND PARTY shall have 1018 days in which to respond and rectify the agreement breach. If a response is not satisfactory or timely made to the FIRST PARTY by the SECOND PARTY, the FIRST PARTY, at the option of the FIRST PARTY, may terminate this agreement.
          9. RIGHT OF INSPECTION: At any time within reason, the FIRST PARTY may enter the premises for the purpose of viewing the SECOND PARTY’s use of the premises in compliance with this agreement. Once a Notice of Termination of this agreement has been provided to the SECOND PARTY, the FIRST PARTY reserves the right to enter upon the premises for the purpose of farming, planting and harvesting the crops on the premises.

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Copyright © 1994 - 2015 by LAWCHEK, LTD.

 

 

          10. REMEDIES: If either party violates the terms of this agreement, the other shall have all rights permitted by law to pursue legal and equitable remedies to which the party is entitled. A failure by the SECOND PARTY to pay any rent when due shall be grounds for the termination of this agreement and shall immediately cause all unpaid rent to be due and owing without any additional notice by the FIRST PARTY to the SECOND PARTY.  All remedies accorded shall be pursuant to Minnesota19 law and shall include Section appropriate state statutes20.
          11. SHARECROP: In the event the parties have agreed that a rental shall be pursuant to a form of share in the crop raised on the premises, all product raised on the premises shall be harvested and located at the specific location to which the parties agree and, in every event, the FIRST PARTY consents. The terms of the sharecrop and the percentage to each party shall be attached hereto as Attachment "A21." 
          12. LANDLORD LIEN22: The FIRST PARTY shall have a lien on all of the SECOND PARTY's personal property located on the above-described real estate and shall have a lien on all crops raised on the premises (growing or grown) until such time that the payments due for rental by the SECOND PARTY to the FIRST PARTY are made. The SECOND PARTY shall provide a list of the crops grown and sign appropriate financing statements in order to allow the FIRST PARTY to protect appropriate liens and security interests so that the FIRST PARTY has a first lien and security interest on the crops grown in order to protect the rent due to the FIRST PARTY.
          13. IMPROVEMENTS23: Any buildings, fences or improvements of any kind made by the SECOND PARTY upon the premises during the term of the agreement shall constitute additional rent payment and shall ensure to the benefit of the real estate and be the property of the FIRST PARTY. No expenses for the improvement of the premises shall be incurred without the expressed permission of the FIRST PARTY, except that the SECOND PARTY agrees to maintain, at his/her cost, all well and other water sewage systems on the premises except in the event of damage caused by natural catastrophe.

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Copyright © 1994 - 2015 by LAWCHEK, LTD.

 

 

          14. GOVERNMENT PROGRAMS: The participation in any government programs provided by the United States Department of Agriculture for the State of                         shall be exclusively at the option of the FIRST PARTY. Payments from participation in such programs shall be divided between the FIRST PARTY and the SECOND PARTY as agreed between them in writing. Such agreement shall be attached hereto as Attachment "B24."
          15. NOTICES25: All notices contemplated under this lease shall be made in writing, and shall be delivered in person or mailed in the United States mail, return receipt requested, to the last known address of the recipient.
          16. POSSESSION: The SECOND PARTY shall receive possession of the premises on the 1st day of April, yr 199626, and shall have the premises subject to the terms and conditions of this lease until the 31st day of December, yr 199727. In the event of termination of this lease for any reason, the premises shall be relinquished to the possession of the FIRST PARTY.
          17. WRITTEN CHANGES: Any changes to this agreement must be made in writing and must be executed by both parties in an addendum to this agreement.
          18. ACCOUNTING: The method used for dividing of and accounting of any harvest of grain, if applicable, shall be performed in the following manner:

Accounting shall not be necessary so long as the tenant is in compliance with paragraph 3 in this agreement.28

          19. APPLICABLE LAW: The laws of the State of Minnesota29 shall apply to this agreement. If either party is compelled to enforce the terms of this agreement, the prevailing party shall be entitled to recover reasonable attorney’s fees and costs.
          20. ADDITIONAL PROVISIONS30:

 

 

 

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Copyright © 1994 - 2015 by LAWCHEK, LTD.

 

 

 

          Dated on this 1st day of March, yr 199631, at Minneapolis, Minnesota32.

 

                                                                                                               
OWNER OF PREMISES/FIRST PARTY33 LEASING PARTY/SECOND PARTY34

 

STATE OF MINNESOTA35 )
)ss
COUNTY OF HENNEPIN36 )

 

          On this 1st day of March, yr 199637, before me, the undersigned notary public in and for Hennepin38 County and the State of Minnesota, personally appeared the individuals identified above as the FIRST PARTY and the SECOND PARTY, who acknowledged to me to be the persons who are named in the agreement and who executed the foregoing agreement as their voluntary act and deed.

 

                                               
NOTARY PUBLIC39

 

 

 

 

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright © 1994 - 2015 by LAWCHEK, LTD.

 

The form above is an example of how a typical Farm Lease form may be completed.

  1. The date the agreement is signed is first noted in this series of blanks.

  2. The name of the landlord is included and should reflect the same name as the landlord uses to sign his signature.

  3. The address of the landlord.

  4. The name of the lessee as assigned.

  5. The address of the lessee.

  6. The county in which the property is located.

  7. The state in which the property is located.

  8. Inserted is the legal description.  The one enclosed is a fictitious description.

  9. The date the lease commenced.

  10. The number of years for which the lease runs.  In this case it is approximately 2 years since the lease does not quite run for 2 years, which is often common for farm land.

  11. The ending day of the lease.

  12. The method of payment in this particular case is not set out.  It should be noted that the owner of the premises was desirous of approximately one-half of the funds in advance of the use of the ground and the other one-half to be paid in the fall of the year, presumably once the crop is harvested by the tenant.

  13. There are various government regulations that relate to wells, lagoons, and other use of property that may affect the environment and the property.

  14. In the event there are exceptions to the use of the premises, such use should be noted.

  15. Termination may vary from state to state.  In this regard, an attorney must be consulted.

  16. It should be noted that this lease is for approximately 2 years.  This is an arbitrary figure chosen for this example.

  17. This is an allowance for renewal of the lease.

  18. A ten-day period was allowed by virtue of the sample contract to permit the tenant to rectify any breach.  This may be very short period of time and, in some states, it may require a more lengthy period.

  19. The name of the state is reflected.

  20. A particular state statute may be inserted at this juncture.

  21. If there is a sharecrop arrangement, and Attachment A should be made a part of the agreement.  It should be noted that in this particular case there is not a sharecrop arrangement pursuant to the rental agreement under paragraph 3; therefore, it is not necessary for there to be an Attachment A.  In such cases, an attorney should be consulted.  if there is not a sharecrop arrangement, the non-applicable part of the contract should be deleted.

  22. In most states, a landlord is permitted a lien on crops growing or grown to assure payment of appropriate rent.  The various states allow for agricultural liens under different circumstances; therefore, an attorney should be consulted.

  23. Improvements may be governed or regulated under specific terminology by virtue of state statutes.  Therefore, state statutes should be reviewed in the presence of an attorney.

  24. Oftentimes, agricultural land may be subject to government programs which are provided by the United States Department of Agriculture.  The participation in government programs may allow for certain payments for which the state should be identified and a special attachment should be set forth if the attachment and agreement are going to relate to the method of rental payment or compensation.

  25. Notices may vary from state to state.  In this particular case, the ordinary mail is used as the means for notice.

  26. The 1st day of April, 1996, was used as the first date of possession.

  27. The 31st day of December, 1997, was the last date of possession and was arbitrarily selected for demonstration purposes.

  28. Many times a specific method of accounting may be required if there involves sharecropping and/or government programs or other unique features to the Farm Lease Agreement.  An attorney should be consulted.

  29. The state of Minnesota was arbitrarily selected for this particular lease, and the Minnesota statutes would apply.

  30. A blank has been provided for additional provisions which the parties may wish to have in their agreement.

  31. The date the agreement is signed has been noted.

  32. The place the agreement was signed has been noted.

  33. The full signature of the owner of the premises.

  34. The full signature of the leasing party.

  35. The state where the document was executed.

  36. The county where the document was executed.

  37. The date the document was executed before a Notary Public.

  38. The county in which the document was executed before a Notary Public.

  39. Signature of the Notary Public.

This is not a substitute for legal advice.  An attorney must be consulted.
Copyright © 1994 - 2015 by LAWCHEK, LTD.

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This is not a substitute for legal advice. An attorney must be consulted.