Common use of Cash Lease Clause in Contracts

Cash Lease. In a cash lease, the tenant will pay a fixed cash payment to the landlord for the use of the land and facilities. The tenant will receive all of the income and pay all his own expenses. The cash lease is suited for absentee landlords and those who wish to have a stable income. Considerations: • The landlord can receive a guaranteed return. • The tenant has more flexibility and independence in production and management decisions. • The results of the tenant's superior farming skill are not shared with the landlord. • Detailed records on crop yields and inputs are not required. • The tenant assumes all production and marketing risk. • Part of the rent may be required to be paid in advance of crop sales. • The landlord has less influence on a tenant's cropping decisions. • Leases are generally short term due to periodic changes in grain prices. • The landlord will not immediately feel the effects of extreme fluctuations in yields and prices. • The cash rental amount can be determined using the income or crop share approach, but is usually established by going rates in an area. These going rates are influenced by land productivity, suitability to certain crops, yield histories and current market prices for the relevant crops, as well as supply and demand for rental land in the community. • The cash lease agreement should specify the date(s) on which the rent is due and payable; and the rights of the landlord to recover the payment of rent. In addition to the rights provided by The Real Property Act, a landlord should specify the actions he can take to recover the debt, such as seizure of the crop and grain.

Cash Lease. In a cash lease, the tenant will pay a fixed cash payment to the landlord for the use of the land and facilities. The tenant will receive all of the income and pay all his own expenses. The cash lease is suited for absentee landlords and those who wish to have a stable income. Considerations: •  The landlord can receive a guaranteed return. •  The tenant has more flexibility and independence in production and management decisions. •  The results of the tenant's superior farming skill are not shared with the landlord. •  Detailed records on crop yields and inputs are not required. •  The tenant assumes all production and marketing risk. •  Part of the rent may be required to be paid in advance of crop sales. •  The landlord has less influence on a tenant's cropping decisions. •  Leases are generally short term due to periodic changes in grain prices. •  The landlord will not immediately feel the effects of extreme fluctuations in yields and prices. •  The cash rental amount can be determined using the income or crop share approach, but is usually established by going rates in an area. These going rates are influenced by land productivity, suitability to certain crops, yield histories and current market prices for the relevant crops, as well as supply and demand for rental land in the community. •  The cash lease agreement should specify the date(s) on which the rent is due and payable; and the rights of the landlord to recover the payment of rent. In addition to the rights provided by The Real Property Act, a landlord should specify the actions he can take to recover the debt, such as seizure of the crop and grain.

Cash Lease. In a cash lease, the tenant will pay a fixed cash payment to the landlord for the use of the land and facilities. The tenant will receive all of the income and pay all his own expenses. The cash lease is suited for absentee landlords and those who wish to have a stable income. Considerations: • The landlord can receive a guaranteed return. • The tenant has more flexibility and independence in production and management decisions. • The results of the tenant's superior farming skill are not shared with the landlord. • Detailed records on crop yields and inputs are not required. • The tenant assumes all production and marketing risk. • Part of the rent may be required to be paid in advance of crop sales. • The landlord has less influence on a tenant's cropping decisions. • Leases are generally short term due to periodic changes in grain prices. • The landlord will not immediately feel the effects of extreme fluctuations in yields and prices. • The cash rental amount can be determined using the income or crop share approach, approach but is usually established by going rates in an area. These going rates are influenced by land productivity, suitability to certain crops, yield histories and current market prices for the relevant crops, as well as supply and demand for rental land in the community. • The cash lease agreement should specify the date(s) on which the rent is due and payable; and the rights of the landlord to recover the payment of rent. In addition to the rights provided by The Real Property Act, a landlord should specify the actions he can take to recover the debt, such as seizure of the crop and grain.

Cash Lease. In a cash lease, the tenant will pay a fixed cash payment to the landlord for the use of the land and facilities. The tenant will receive all of the income and pay all his own expenses. The cash lease is suited for absentee landlords and those who wish to have a stable income. Considerations: • The landlord can receive a guaranteed return. • The tenant has more flexibility and independence in production and management decisions. • The results of the tenant's superior farming skill are not shared with the landlord. • Detailed records on crop yields and inputs are not required. • The tenant assumes all production and marketing risk. • Part of the rent may be required to be paid in advance of crop sales. • The landlord has less influence on a tenant's cropping decisions. • Leases are generally short term due to periodic changes in grain prices. • The landlord will not immediately feel the effects of extreme fluctuations in yields and prices. • The cash rental amount can be determined using the income or crop share approach, approach but is usually established by "going rates rates" in an area. These "going rates rates" are influenced by land productivity, suitability to certain crops, yield histories and current market prices for the relevant crops, as well as supply and demand for rental land in the community. • The cash lease agreement should specify the date(s) on which the rent is due and payable; and the rights of the landlord to recover the payment of rent. In addition to the rights provided by The Real Property Act, a landlord should specify the actions he can take to recover the debt, such as seizure of the crop and grain.

Cash Lease. In a cash lease, the tenant will pay a fixed cash payment to the landlord for the use of the land and facilities. The tenant will receive all of the income and pay all his own expenses. The cash lease is suited for absentee landlords and those who wish to have a stable income. Considerations: •  The landlord can receive a guaranteed return. •  The tenant has more flexibility and independence in production and management decisions. •  The results of the tenant's superior farming skill are not shared with the landlord. •  Detailed records on crop yields and inputs are not required. •  The tenant assumes all production and marketing risk. •  Part of the rent may be required to be paid in advance of crop sales. •  The landlord has less influence on a tenant's cropping decisions. •  Leases are generally short term due to periodic changes in grain prices. •  The landlord will not immediately feel the effects of extreme fluctuations in yields and prices. •  The cash rental amount can be determined using the income or crop share approach, approach but is usually established by going rates in an area. These going rates are influenced by land productivity, suitability to certain crops, yield histories and current market prices for the relevant crops, as well as supply and demand for rental land in the community. •  The cash lease agreement should specify the date(s) on which the rent is due and payable; and the rights of the landlord to recover the payment of rent. In addition to the rights provided by The Real Property Act, a landlord should specify the actions he can take to recover the debt, such as seizure of the crop and grain.

Cash Lease. In a cash lease, the tenant will pay a fixed cash payment to the landlord for the use of the land and facilities. The tenant will receive all of the income and pay all his own expenses. The cash lease is suited for absentee landlords and those who wish to have a stable income. Considerations: •  The landlord can receive a guaranteed return. •  The tenant has more flexibility and independence in production and management decisions. •  The results of the tenant's superior farming skill are not shared with the landlord. •  Detailed records on crop yields and inputs are not required. •  The tenant assumes all production and marketing risk. •  Part of the rent may be required to be paid in advance of crop sales. •  The landlord has less influence on a tenant's cropping decisions. •  Leases are generally short term due to periodic changes in grain prices. •  The landlord will not immediately feel the effects of extreme fluctuations in yields and prices. •  The cash rental amount can be determined using the income or crop share approach, approach but is usually established by "going rates rates" in an area. These "going rates rates" are influenced by land productivity, suitability to certain crops, yield histories and current market prices for the relevant crops, as well as supply and demand for rental land in the community. •  The cash lease agreement should specify the date(s) on which the rent is due and payable; and the rights of the landlord to recover the payment of rent. In addition to the rights provided by The Real Property Act, a landlord should specify the actions he can take to recover the debt, such as seizure of the crop and grain.