The Iowa Short Form is a simplified lease agreement designed to assist owners and operators in establishing a cash rent farm lease tailored to their specific needs. This form serves as a guide for the development of an agreement but does not replace legal advice regarding contractual relationships. To begin the process of creating your lease, please fill out the form by clicking the button below.
The Iowa Short Form is a practical tool designed to assist landowners and operators in creating a cash rent farm lease that meets their specific needs. This form outlines essential elements such as the lease term, which typically spans multiple years, and the process for renewal or termination. It includes detailed provisions regarding cash rent payments, specifying amounts based on different types of land use, such as cropland and pasture. Additionally, the form addresses the responsibilities of both parties, including maintenance duties and the division of expenses. Important stipulations regarding the use of the property, such as restrictions on recreational activities and the handling of harvested crops, are also included. The Iowa Short Form serves as a guideline, but it is crucial to remember that it does not replace legal advice tailored to individual circumstances. By utilizing this form, both owners and operators can establish clear expectations and protect their interests in the farming relationship.
This form can provide the owner and operator with a guide for developing an agreement to fit their individual situation. This form is not intended to take the place of legal advice pertaining to contractual relationships between the two parties.
IOWA CASH RENT FARM LEASE (SHORT FORM) FOR 20
Owner (s):
Operator (s):
1. Legal Description:
2. Terms of Lease: The term of the lease shall be for a period of year (s), beginning March 1, 20 . After
expiration of the initial term, the lease shall continue from year to year, unless terminated by a separate written agreement or by statutory termination notice served by either party on or before September 1, as directed by Iowa law, effective the following March 1.
3. There are
contract acres available according to county FSA records (FSA form 578).
The following housing, buildings and storage structures located on the Real Estate may be used by the Operator for the following purposes:
Structure
Purpose
In the event of damage or destruction of buildings or structures listed above the Owner will have the option to replace them or provide their functional equivalent to the Operator for the purpose described above within a reasonable period of time, or make adjustments to the terms of this lease in lieu of replacement.
4.Cash Rent: Operator agrees to pay the Owner cash rent for the use of part or all of the Real Estate as follows:
Description
Amount
Cropland
acres
@ $
/acre
$
Established hay land
Pasture
Buildings and storage structures, housing
Total annual rent
The cash rent shall be due and payable as follows: Due Date
Amount $
Due Date
All cash rent is to be mailed or delivered to the Owner at:
FM 1874/C2-16 Revised July 2016
date
owner (s) initials
operator (s) initials
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5.USDA Commodity Program Payments: Payments shall be paid to the Operator unless otherwise agreed on with the Farm Service Agency.
6.Recreational Use: Use of the real estate is not allowed for hunting or other recreational purposes without written consent of the Owner.
7.Division of Expense: All crop production expenses are the responsibility of the Operator. Cost of lime and application will be treated as follows:
8.Expenses: No expense shall be incurred by the Operator for or on account of the Owner without first obtaining written permission from the Owner. The Operator agrees to take no actions that might cause a mechanic’s or other lien to be imposed upon the Real Estate and agrees to indemnify the Owner if actions are taken by the Operator that result in such a lien being imposed.
9.Repair and Maintenance: Minor repairs for buildings and fences: Owner will furnish all materials and Operator
will provide the labor at no charge. New fence: Owner to furnish all materials and one-half of the cost of labor. Operator to provide one-half of the labor and all of the equipment to construct fence. Owner will pay 100% of the cost to clear fence row when necessary.
10.Operator’s Duties: Operator agrees to operate the farm in an efficient and steward-like manner, control weeds and brush in the fields, fence rows, and road ditches, provide proper maintenance to control erosion and maintain terraces, waterways, and tiles, and building lots and all other areas of the farm where access is possible. The Operator agrees to furnish to the Owner by December 15 an annual report including 1) a summary of fertilizer, lime, and pesticide application records and 2) production or yield information about harvested crops each year, such as may be required for participation in Farm Service Agency programs or for setting crop insurance actual production history yields, and to use measurement methods acceptable for these purposes. Operator agrees, on termination of the lease, to yield prompt possession of the farm to the Owner and to leave the premises in as good condition as before they took possession or to compensate the Owner for damages.
11.Owner’s Duties: Owner agrees to warrant and defend the Operator’s possession against all persons as long as this lease remains in effect. The Owner will promptly pay real property taxes and carry insurance on his/her interest in the property.
12.Harvested Crop’s Aboveground Plants: Operator does not have the right to take any part of the harvested crop’s aboveground plant without the express written permission of the Owner. This includes burning or removing any crop residues from the property.
13.Transfer of Interest: The Operator agrees not to lease or sublet any part of the Real Estate nor assign this lease to any other person or entity, nor sublease any or all of the property described herein without prior written permission of the Owner. This lease shall be binding upon the heirs, assignees, or successors in interest of both parties. If the Owner should sell or otherwise transfer title to the Real Estate, the Owner will do so subject to the provisions of this lease.
14.Changes in Lease Terms: The conduct, representation, or statement of either party, by act or omission, shall not be construed as a material alteration of this lease until such provision is reduced to writing and executed by both parties as an addendum to this lease.
15.Right of Entry: The Owner reserves the right to enter the premises at any time for any reasonable purpose. Upon notice of the lease termination, the Operator agrees to permit the Owner or the Owner’s lessee or agent to enter the premise to do customary tillage and operations on any land from which the current crops have been harvested
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16.Owner’s Landlord’s Lien and Security Interest. The Operator acknowledges that a statutory Landlord’s Lien exists in favor of the Owner. The Operator also grants to the Owner a security interest in, but not limited to, all growing or mature crops on the Real Estate as provided in the Iowa Uniform Commercial Code. The Operator shall sign all documents and financing statements as requested by the Owner to perfect the Owner’s security interests.
At Owner’s request, the Operator shall provide the Owner a list of potential buyers for the crops grown on the farm. The Operator agrees to deliver and sell such crops only to those buyers listed. The Owner shall deliver a Notice of Security Interest to those buyers and only those buyers listed. The Operator shall not sell such crops to any buyer not listed without first obtaining written consent of the Owner.
17.Termination upon Default: If either party defaults in the performance of the existing rental agreement, the non-
defaulting party shall serve a notice of default upon the defaulting party. The defaulting party shall have days
to cure the default. Failure to cure within the required timeframe shall terminate the lease. If the lease terminates because the Operator failed to pay the rent due, all costs and attorney fees of the Owner to enforce collection or performance shall be added to the obligations payable by the Operator. The Operator shall also be liable for interest
on the unpaid rent at the rate of
% APR.
18.Other Provisions:
19.Arbitration: Any disputes between the Owner and Operator not covered by this lease may be submitted by either party for arbitration at a reasonable fee by three disinterested persons, one of whom shall be selected by the Owner, one by the Operator, and the third by the previously named two. If and when disputes are submitted, a majority decision of the arbitrators shall be binding upon the parties to the lease.
We agree to the terms and conditions of this lease and we affix our signatures this
day of
, 20
.
Signature of Operator
Signature of Spouse/Co-operator
For (business entity)
Address
Telephone
Optional Notarization
Signature of Owner
Signature of Spouse/Co-owner
By (owner’s representative)
STATE OF
, COUNTY OF
ss:
This record was acknowledged before me this
day of,
, by
Signature of Notary Public
page 3 of 3
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, and marital or family status. (Not all prohibited bases apply to all programs.) Many materials can be made available in alternative formats for ADA clients. To file a complaint of discrimination, write USDA, Office of Civil Rights, Room 326-W, Whitten Building, 14th and Independence Avenue, SW, Washington, DC 20250-9410 or call 202-720-5964.
Filling out the Iowa Short Form is a straightforward process that helps establish a clear agreement between the owner and operator of the property. Once completed, this form serves as a foundational document for your lease, ensuring both parties understand their rights and responsibilities.
After completing these steps, ensure that both parties keep a copy of the signed form for their records. This will help avoid misunderstandings and provide clarity throughout the lease term.
The Iowa Short Form is a template designed to help landowners and operators create a cash rent farm lease agreement. This form serves as a guide tailored to fit individual circumstances. It is important to note that this form is not a substitute for legal advice regarding contractual relationships between the parties involved.
The lease outlines several important terms, including:
The lease specifies the cash rent due for various types of land, such as cropland and pasture. The total annual rent is calculated based on the number of acres and the agreed-upon rate per acre. Payment schedules can also be established, detailing due dates and amounts. All payments should be directed to the owner’s specified address.
If either the owner or operator fails to fulfill their obligations under the lease, the non-defaulting party must provide a notice of default. The defaulting party is then given a set number of days to remedy the situation. If the default is not corrected, the lease may be terminated. In cases where the operator fails to pay rent, additional costs, including attorney fees and interest on unpaid rent, may be incurred.
No, the operator cannot lease or sublet any part of the real estate without obtaining prior written permission from the owner. This clause ensures that the owner maintains control over who uses the property and under what conditions. The lease also remains binding on the heirs and successors of both parties, ensuring continuity of the agreement.
Incomplete Legal Description: Failing to provide a complete and accurate legal description of the property can lead to confusion and disputes. Ensure that the legal description matches public records to avoid issues later.
Ambiguous Lease Terms: Not clearly defining the terms of the lease, such as the duration and renewal conditions, may result in misunderstandings. Specify the start and end dates, as well as any provisions for termination.
Incorrect Cash Rent Calculation: Miscalculating the cash rent due can create financial disputes. Double-check all calculations and ensure that the amounts listed for different types of land are accurate and clearly stated.
Neglecting USDA Payment Agreements: Overlooking the stipulations regarding USDA Commodity Program Payments can lead to missed benefits. Clarify who receives payments and document any agreements with the Farm Service Agency.
Ignoring Recreational Use Restrictions: Failing to address the use of the property for recreational activities can lead to unauthorized use. Clearly state that hunting or recreational use requires written consent from the owner.
Overlooking Repair and Maintenance Obligations: Not specifying responsibilities for repairs and maintenance can lead to disputes over property condition. Clearly outline who is responsible for what, especially for minor repairs and new constructions.
Inadequate Signatures and Notarization: Not ensuring that all necessary parties sign the document or neglecting notarization can render the lease unenforceable. Make sure all signatures are obtained and consider notarizing the agreement for added legal protection.
The Iowa Short Form serves as a foundational document for agricultural leasing agreements, particularly in cash rent scenarios. However, it is often accompanied by various other forms and documents that help clarify terms, outline responsibilities, and ensure compliance with legal requirements. Understanding these supplementary documents can enhance the effectiveness of the leasing process and protect the interests of both owners and operators.
Incorporating these documents alongside the Iowa Short Form can lead to a clearer understanding of the lease terms and responsibilities. Each document plays a unique role in enhancing the overall leasing experience, ensuring that both parties are protected and informed throughout the duration of the agreement.
The Iowa Short Form Cash Rent Farm Lease is similar to the Agricultural Lease Agreement, which outlines the relationship between a landowner and a tenant who farms the land. Both documents specify the terms of use, duration, and payment structure for the land. However, the Agricultural Lease Agreement often includes more detailed provisions about crop management, land improvements, and responsibilities for maintenance. This makes it more comprehensive, while the Iowa Short Form serves as a simplified version, focusing primarily on cash rent arrangements.
Another document that shares similarities is the Crop Share Lease Agreement. This type of lease divides the crop yield between the landowner and the operator based on predetermined percentages. Like the Iowa Short Form, it establishes responsibilities for both parties, including maintenance and operational duties. However, the Crop Share Lease emphasizes profit-sharing from the harvest rather than a fixed cash rent, making it suitable for different farming arrangements.
The Farm Lease Agreement is also comparable to the Iowa Short Form. This document serves as a broader framework that can cover various aspects of leasing agricultural land, including cash rent, crop share, and other arrangements. While the Iowa Short Form focuses specifically on cash rent, the Farm Lease Agreement can be customized to meet the unique needs of both the owner and the operator, allowing for greater flexibility in terms of payment and responsibilities.
Similar to the Iowa Short Form is the Livestock Lease Agreement, which governs the rental of land for livestock grazing or farming. This document outlines the terms under which livestock can be raised on the land, including responsibilities for care, feeding, and maintenance. While both agreements cover the use of land for agricultural purposes, the Livestock Lease focuses specifically on livestock management, making it distinct yet related.
The Rental Agreement for Agricultural Equipment is another document that shares some similarities. While the Iowa Short Form pertains to land leasing, this agreement covers the rental of equipment necessary for farming operations. Both documents establish terms for use, maintenance, and payment, but the focus of the Equipment Rental Agreement is on machinery rather than land, making it a crucial complement to any farming lease.
Next, the Custom Farming Agreement is relevant, as it details the arrangement between a landowner and a farmer who will manage the farming operations for a fee. This document outlines the services to be provided, payment terms, and responsibilities for inputs and labor. While the Iowa Short Form emphasizes cash rent, the Custom Farming Agreement focuses on the operational aspects of farming, creating a different type of relationship between the parties involved.
The Farm Management Agreement is another document that bears resemblance to the Iowa Short Form. This agreement typically outlines the management responsibilities of a third party on behalf of the landowner. It includes terms for decision-making, profit-sharing, and operational management. While the Iowa Short Form is a direct lease between owner and operator, the Farm Management Agreement introduces an additional layer of management, often for larger farming operations.
The Real Estate Lease Agreement is also similar, as it covers the rental of property for various uses, including agricultural purposes. While it can apply to residential or commercial properties, when used for agricultural land, it shares many features with the Iowa Short Form. Both documents specify terms of use, duration, and payment, but the Real Estate Lease may not delve into the specific agricultural practices or responsibilities that the Iowa Short Form addresses.
Lastly, the Pasture Lease Agreement is relevant, particularly for landowners who wish to rent land specifically for grazing livestock. This document sets forth the terms under which livestock can graze, including payment structures and maintenance responsibilities. Like the Iowa Short Form, it focuses on the relationship between the landowner and the operator, but it is tailored for specific use cases involving livestock rather than crop production.
When filling out the Iowa Short Form, it is essential to follow specific guidelines to ensure accuracy and compliance. Here are four key actions to take and avoid:
Misconceptions about the Iowa Short Form can lead to confusion and mismanagement of leases. Here are seven common misunderstandings:
Here are some key takeaways about filling out and using the Iowa Short Form: