Know farm-asset responsibilities

Farm buildings and land often last longer than the owner has a need for them, but may still be usable by other farmers. Those farmers, especially beginning farmers, may not be in a position to invest in new or to upgrade existing facilities. Both parties may benefit by entering into a landlord-tenant relationship. The owner may receive a return on property that might otherwise remain idle or be underutilized. The farmer may use the property without making a large fixed investment. However, the owner – the landlord – and the farmer – the tenant – must agree on various elements when developing a rental agreement for crop or livestock buildings, or farm land.

The landlord and tenant need to discuss improvements and repairs of the property before the lease begins. There is no correct answer as to who should pay for what. A written lease detailing the responsibility of each party and agreeing to those items ahead of time will make the landlord-tenant relationship less troublesome.