Cost-sharing A frequent issue is the owner`s responsibility to share the costs of weeding herbicides, which may be a partial or total substitute for cultivation or other methods of tillage. Most owners agree to cover half the cost of these materials under a plant share lease. Some believe that where there are no till practices or minimum flooring, they do not have to pay 50% of the total cost of herbicides. For more information, visit FM 1811 (AgDM C2-15), Survey of Iowa Farm Leasing Practices. The most popular and most used land lease agreement is a fixed lease. The owner of the land receives a pre-established fee from the tenant, which must be paid regardless of the price or proceeds of the harvest. As a general rule, the landowner is not involved in the decision-making and does not pay any of the intermediate consumption. Normally, these agreements are in progress for several years on the basis of a simple written agreement. Cash rent could be as short as a growing season, which must then be renewed each year. Each cash lease may have different terms of sale depending on the situation, but it must set the rental price, payment schedule, duration of contract (start and end date) and all harvest or other restrictions. Putting agreements in a document that landowners and tenants sign is always the recommended practice. This option is good for landowners who want to eliminate the uncertainty and risk of a fixed plan. The UCC1 form must be submitted to the Iowa Minister of Foreign Affairs` office within 20 days of the lease into effect to enhance the owner`s pledge.
Property Tax Assessment Many farm properties may do the trick with a «special use assessment» when the estate is in progress, which often leads to an assessment below the current market value. This can be beneficial for rebates large enough to trigger basic federal taxes. However, a prerequisite for a special use assessment is that the scammer or a family member was physically involved in the case five times out of eight before death and that a qualified heir must participate materially ten years after the scammer`s death. The use of lime on soils contributes to productivity by adapting soil acidity. Lime applications usually take several years. If the current tenant has been operating the farm for several years and has contributed to the lime needs, he should pay for the pH to return to a normal area. If it is a new tenant, then the landlord and tenant must agree. The landlord can pay for the lime or the lessor and the tenant could agree that the lime costs over a period of 3 to 5 years are to prog. If the tenant pays for the lime and does not rent the land for the life of the lime, he is reimbursed a percentage of the lime costs. Some long-term tenants may share the cost of lime.
See AgDM C2-06, Farmland Lease Annual Report Form, an example of information that could be shared between tenants and landowners in construction contracts.