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Welcome to another La Rhonda instructional video my name is John moss, and today I'm going to discuss why it's important for both farm landowners and tenants to have a written lease at first glance the idea of not having all the terms of a rental arrangement in writing seems irresponsible especially when many farm properties today are worth hundreds of thousands of dollars and the income from these tracks are often well into five figures, yet agriculture is unique and that many owner tenant relationships has stretched over several decades and across several generations and the prevailing thought for many landowners still is well your grandfather started farming from my grandfather with just a handshake and that's good enough for me while that sentiment imbues an implicit trust in the farmer it also overlooks the fact that farming has evolved immensely over the past several years and the practices that may have worked well for the grandfathers may not be as prudent or effective today for many landowners the appeal of the oral farm lease is in its simplicity but in the simplicity you can also create risk and misunderstanding take a few minutes and think about your farm and all the variables that might cause problems from whom you have your agreement with is it an individual a corporation for a third party and are they the ones actually doing the work to what the tenant is specifically leasing from you is it the entire property just the tillable acres the improvements or some combination from the length of the lease one year or multiple ones to both a specific starting and ending dates of the arrangement rural leases typically begin a march one of each year and end on February 28 while modern leases run with a calendar year and then there are the income and expense items how and when will you receive your income which is very important to those who lie on the cash flow to pay bills to who should be responsible for paying the various expenses it's important to note that the allocation of the income and expense items has evolved as farming practices have changed 40 years ago it was common for landlords to pay the tenant for combining and trucking costs in addition to paying for all line that was applied today most leasing arrangements have eliminated the combine and trucking reimbursements while the line costs is equally shared even the traditional 50-50 split and crop income in many areas has shifted to 55 45 in the owners favor keep in mind that it's nearly impossible to cover every conceivable scenario in the typical farm lees as each property owner antenna is unique however most modern rental agreements do contain a diverse set of provisions that are tailored to address the most common problems which in addition to those mentioned earlier would include descriptive language that outlines the duties and responsibilities of the tenant the manner in which all management and business procedures are to be made and the remedies in case of default death...