1. PARTIES TO THE PRESENT COVENANT: This lease is entered into on , 20 , between , owner of farm premises and Landlord, whose principal address of business is
, for [a portion of] the property located at
described as
and commonly known as
and the Trustees of the ["Health Thru Gardening Trust", or whatever entity is leasing], Tenant, represented hereby by , Trustee.
2. DESCRIPTION OF PROPERTY HEREBY RENTED: The Landlord rents and leases to the Tenants, to occupy and to use for agricultural purposes, the following real estate located in in the County of , State of , legally described and commonly known as the
[of said farm premises], consisting of an approximate surface of
comprising the building(s) known as , plus any additional other areas as maybe designated from time to time by common agreement between the parties.
3. TERM OF THE LEASE: The term of this lease agreement shall be in effect for the period commencing on 20 , and ending , 20 , and shall continue in effect from year to year thereafter (as an annual lease) unless written notice of termination is given by either party to the other at least 180 days prior to expiration of this lease or before the end of any year of continuation.
4. RENT PAYABLE: Under the present crop-sharing arrangement, the annual rent due for the present lease shall be a percentage of the crop in the following agreed percentages: Landlord – % [usually 10% to 25%, depending on the exact landlord input, besides providing the land itself] Tenants – %. Any needed crop inputs, in addition of the basics hereby provided by Landlord, such as land, buildings and water, etc, will be shared on the same agreed percentage as the crop. (That is, if $100 [or Currency Units] are spent on fertilizer, and the percentage agreed on is 20%, $20 [or Currency Units] will be provided by Landlord). However, the maximum amount of rent paid on said basis shall not exceed $ [or Local Currency Units] per year, in cash, script or in nature.
Conversely and at Landlord's choice, and with no impact on aforementioned value, Landlord's share might be reduced to %, [usually 10%, but negotiable] all crop inputs, except unlimited access to water and well water and said land and buildings, becoming responsibility of Tenant.
As payment for the present lease, Landlord is entitled to a "Crop Share", where "crop" is defined as any plant produce as it is grown on the land by Tenants through Tenants or through cooperative efforts, and not related to any other activity. Crop share can be delivered as crop on Landlord's request, but only IF the parties can agree on a valuation of said crop. Otherwise, crop will be sold wholesale by Tenant, and the corresponding net proceeds after sale expenses paid to Landlord, or if Landlord and Tenant decide to jointly run a farm stand or by the road or in adjacent populated areas (such as, for example, ), or use any other alternative sales method by common agreement, then the net proceeds of such sales after paying for sale expenses will be shared on the same basis.
Conversely, by agreement between the parties, crop not meant to be sold but only to be consumed locally shall be delivered by tenant in form of an actual percentage of the physical crop, such as 25 potatoes for each 100 potatoes harvested, 25 pounds or Kgs of greens by 100 pounds or Kgs harvested, etc.
If workforce input is from time to time provided by Tenant to Landlord, for example in the form of work provided by Tenant's volunteer workforce, said work input will be counted toward satisfaction of lease obligations on the basis of ONE [LOCAL CURRENCY] HOUR per one hour of actual work provided, unless it is specialized work valued at a higher rate by common agreement between the parties. The current currency exchange rate of the [LOCAL CURRENCY] HOUR is [for example, $10] per hour in common currency, but this rate might be modified by agreement between the parties if inflation so warrants, or if minimum wages rises over [$10] per hour.
5. STANDARD GENERAL CLAUSES:
MOST FAVORED PARTNERS: In the case Landlord or Tenants desire to participate in the marketing of their respective products, such for example as vegetables or as nutritional products produced under this tenancy, each party will offer its products or services to the other party under the most favorable conditions made available to any other distributor or partner.
NO PARTNERSHIP INTENDED — However, it is particularly understood and agreed that this lease shall not be deemed to be nor intended to give rise to a partnership relation. Each parties will conduct their own farming or other operations in a completely independent manner and will not encroach on the land or buildings used by the other party, and will insure that the members of their respective communities and programs understand they are to encroach on the other party's land and buildings unless they are specifically so invited by the person-in-charge.
BINDING ON HEIRS — This Lease shall be binding upon the Landlord and Tenants and their respective personal representatives, trustees, successors, assigns, lessees or sub-lessees.
LANDLORD LIABILITY — Landlord shall have no liability: Tenants takes possession of the leased premises subject to the hazards of operating a farm, and assumes all risk of accidents personally as well as for family, employees, or agents in pursuance of farming operations, or in performing repairs on buildings, fences, tile, and other improvements except as set by law for any liability arising out of the "gross negligence" of the Landlord.
6. USE OF THE LAND:
Tenants further agrees to perform and carry out the stipulations below:
The purpose of Tenancy is to grow agricultural crops directly as well as indirectly, by allowing sub-lessees or volunteers of Tenant's choice to do the same, while providing adequate facilities and amenities to all Stakeholders to do so. Tenants shall make all decisions with respect to growing of crops on the land unless stated otherwise in this agreement or any other subsequent additional agreements. As for the present time, the main purpose of Tenancy is to grow Organic & Sustainable Vegetables, Moringa trees mainly treated as annuals and herbs for sale on the marketplace or as a crop, or as a plant. If this changes substantially, Tenant will inform Landlord of new developments.
(CONDITION OF LAND AT THE END OF THE LEASE) — Tenants will endeavor to:
- Leave the rented land in the same or a better condition as at it was at the beginning of the lease.
(GOOD STEWARDSHIP) — Cultivate the leased premises faithfully in accordance with normal farm or market-gardening practices.
(SOIL EROSION) — Control soil erosion as completely as reasonably possible; keep in good repair all terraces, open ditches, inlets and outlets of tile drains; preserve all established watercourses or
ditches including grassed waterways; and refrain from any operation or practice that will injure such structures.
(REPAIRS) — Keep Landlord's fences and other improvements in as good repair and condition as they are when the Tenants takes possession or in as good repair and condition as they may be put by the Landlord during the term of the lease, ordinary wear, loss by fire, or unavoidable destruction excepted.
7. ACTIVITIES RESTRICTED: The Tenants further agrees, unless the written consent of the Landlord has been obtained:
NO ALTERATIONS — Not to remove, alter or change the style or position of any existing building on the said leased premises, except as such modifications being allowed from time to time verbally for minor adjustments, or in whatever additional farm-related buildings Tenant
might elect to erect from time to time as the need might arise. It is hereby expressedly stipulated that such additional buildings or modification, even if fixed and "real" by nature, will remain at all times the full property of Tenant, and not become "Real Estate by Destination", Tenant being at all times permitted to remove such additions or modifications created or made through Tenant's efforts and at Tenants cost. However, if such additions or modifications are not removed within 90 days after lease termination, it is hereby agreed that they will become Landlord's exclusive property for all times present and future, except if no access to them was possible because of circumstances beyond Tenants' control, in which case the parties will convene to agree on different terms.
LIMITATION OF LANDLORD'S LIABILITY: Tenants or Tenants' partners or associates will mainly use this property for purposes and activities directly or indirectly related to agricultural production, such as the raising of crops, the transformation, marketing and promotion of agricultural or related products into composts, designers soils, foods, beverages, nutritional, nutraceutical and/or cosmetic products or services directly by or in partnership with and under the responsibility of Tenants, the use and promotion of use of agricultural, nutritional, nutraceutical or cosmetic products, or the promotion of their use. Regardless of any such developments, Landlord is hereby being released of any and all possible liabilities relating to Tenants activities.
AMENDMENTS AND ALTERATIONS — Amendments and alterations to this lease shall be in writing and shall be signed by both the Landlord and Tenant.
8. ENVIRONMENTAL MATTERS: - The parties hereto hereby acknowledge that the Tenants intends to use the leased premises described in this lease for agricultural purposes and that such use of the land may have an environmental impact; accordingly, the parties agree as follows:
USE OF NORMAL ORGANIC FARM PRACTICES — The Tenants shall conduct its operations on the leased premises in accordance with normal farm practices including, but not limited to, the application of only NATURAL amendments, fertilizers, pesticides and herbicides and shall only engage licensed applicators of such substances or shall ensure that the persons doing so are appropriately licensed for such applications, in case such license are necessary to satisfy local regulations. The abominable practices of "conventional agriculture" shall be avoided as a rule.
MANURE AND NUTRIENTS — Tenants will haul, process and spread manure to be used on appropriate fields at times and in quantities consistent with sound manure management practices, and for the activity of creating natural and bio-dynamic composts for both for-profit and not-for-profit activities.
NOISE — The Tenants shall ensure that no undue noise emanates from the leased premises or from the operations of the Tenants on the leased premises, at a level not permitted by local regulations.
9. TERMINATION OF LEASE: Grounds for Termination of Lease
If either party fails to carry out substantially the terms of this lease in due and proper time, the lease may be terminated by the other party by serving a written notice citing the instance(s) of default and specifying a termination date of a number of days from the date of such notice, which can not be of less than 90 days for termination for due cause, while discretionary termination before the end of each yearly lease term shall be given with 180 days notice as otherwise stated. Failure to give notice in time just meaning roll-over to the next notice period. Settlement shall then be made in accordance with the standard provisions under this lease and any amendments to it.
Tenant's Compensation on Termination of Lease — The Landlord agrees to reimburse the Tenants at the termination of this lease for field work done and for other crop costs incurred for crops to be harvested during the following year. Unless otherwise agreed, current local custom rates for the operations involved will be used as a basis of settlement. In particular, all trees and seedlings of the Moringa species and products and all their parts or by-products shall remain the property of Tenants and be removed by them, subject to compensation to Landlord hereby agreed upon. Landlord hereby represents that for five (5) years after termination of this lease, Landlord or family members and associate(s) will not engage in the cultivation, transformation or marketing of any specialty crops promoted by Tenant (such as Moringa, Artemisia, etc), or of any related products or services.
Tenants shall, at the expiration of the notice period, peaceably and quietly give up possession of the leased premises to Landlord. Landlord shall, after Tenants have delivered up possession in manner aforesaid, and paid to the Landlord the full proportion of rent up to he beginning of the notice period will compensate all Tenants for the value of the crops sown and then growing, or of the field work done on the leased premises in preparing for a crop, the amount of such compensation to be determined by arbitration if the parties cannot agree thereon.
10. RESOLVING DIFFERENCES: Disagreements Will Be Submitted to an Arbitrator.
Any differences between the parties as to their several rights or obligations under this lease and to the affairs of the leased premises that are not settled by mutual agreement after thorough discussion, hall be referred to the arbitration of a single arbitrator, if the parties hereto agree upon one; otherwise to three arbitrators, one to be appointed by each party at their own discretion and a third to be chosen by the first two named, at their own discretion, before they enter upon the business of arbitration. The award and determination of such arbitrator or arbitrators, or any two of such three arbitrators, shall be binding upon the parties hereto and their respective heirs, executors, administrators and assigns.
Made in , State of , this Day of 20 .
Landlord Tenant
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Feel free to modify this contract as suitable to you and use it free of charge courtesy of http://healththrugardening.blogspot.com/ , if you wish to rent or lease land to grow crops cooperatively.
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