Agricultural Land Lease Contract Management

Agricultural Land Lease Contract Management is when a land asset is rented by a party external to the landowner for agricultural production purposes.

 

If the property isn’t managed correctly, the land asset value could decrease or lead to a considerable expenditure requirement to return the property to previous production levels. 

 

What are the implications if there is no contract between parties?

 

The most significant risk of no contract is the degradation of the asset via mismanagement. This is a very common occurrence if the landholder does not provide the parameters for the property to be returned once the tenure is complete.

 

Weed control and soil degradation are also prime and common examples. If there is no specific agreement in place, both parties could be subject to a conflict per the interpretation of an agreement.