Common use of Pasture Cash Lease Clause in Contracts

Pasture Cash Lease. In a pasture 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 pasture 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. The tenant assumes all production and marketing risk. Part of the rent may be required to be paid in advance of calf sales. The landlord has less influence on a tenant's management decisions. Leases are generally short term due to periodic changes in livestock prices. The landlord will not immediately feel the effects of extreme fluctuations in productivity and prices. The cash rental amount can be determined using the income share approach but is usually established by going rates in an area. These going rates are influenced by land productivity and current market prices for livestock, as well as supply and demand for rental land in the community. The pasture 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.

Pasture Cash Lease. In a pasture 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 pasture 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.  The tenant assumes all production and marketing risk.  Part of the rent may be required to be paid in advance of calf sales.  The landlord has less influence on a tenant's management decisions.  Leases are generally short term due to periodic changes in livestock prices.  The landlord will not immediately feel the effects of extreme fluctuations in productivity and prices.  The cash rental amount can be determined using the income share approach approach, but is usually established by going rates in an area. These going rates are influenced by land productivity and current market prices for livestock, as well as supply and demand for rental land in the community.  The pasture 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. IV.

Pasture Cash Lease. In a pasture 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 pasture 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. The tenant assumes all production and marketing risk. Part of the rent may be required to be paid in advance of calf sales. The landlord has less influence on a tenant's management decisions. Leases are generally short term due to periodic changes in livestock prices. The landlord will not immediately feel the effects of extreme fluctuations in productivity and prices. The cash rental amount can be determined using the income share approach approach, but is usually established by going rates in an area. These going rates are influenced by land productivity and current market prices for livestock, as well as supply and demand for rental land in the community. The pasture 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.