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Rental Agreements for Farm Buildings and Livestock Facilities

Farm buildings and livestock facilities often outlast their owner’s need for them, but are still usable. Other operators want the services of certain types of farm buildings but are not in a position to invest in new facilities. Both parties can benefit by developing a lease arrangement. The owner receives a return from resources that might otherwise lie idle or be underutilized. The operator can use these resources without making a large fixed investment. However, they must agree on the amount of the rental payment and the use and care of the property.

 

This publication examines the major considerations in developing rental agreements for crop and livestock buildings and facilities from both the owner’s and operator’s points of view. Three different approaches to determining a cash rental rate will be presented. Finally, several other important considerations for developing a lease agreement will be discussed. A sample lease form is also included.

 

NCFMEC-04

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