Okay, so many of you know I'm not the sharpest tool in the shed. Since my dad died, I've tried leasing our small property (north of Aggieland, in Robertson County) out as a hay lease. Not interested in any cattle lease for now, just hay.
It's 200 acres with 110 tillable/coastal hay pasture. It was beautiful in its "heyday" when my dad would work it, but in recent years before his death (and me out of state with medical care for my son), it just became neglect. Still looks great "most" of the year. Yields about 4-5 bales per acre on good cuts.
I found someone a couple years ago who pays me $8/bale (1k round bales) and he has only since fertilized it once, chicken littered it a couple years ago, and never weed killed. It's to be expected, but it sort of has become neglect again. He's made 2 cuttings each year. It seems that there's always an excuse for not fertilizing or maintaining: "price of fertilizer is too high", "armyworms got it", or "not enough rain" but this year with good rain and lower fertilizer prices the excuse was "price of hay is too low, so not worth it to cut".
I don't want my dad turning over in his grave by me dishonoring the place, so I'd like your help in looking over this contract that I drew up (with help from ChatGPT). It may seem wordy and drive off folks, but at this point, I'm not out to make much $ as I am keeping it in production. That's why I'm offering up to $4,000 credit towards him applying fertilizer/weed killing/shredding each year.
Some notes:
-the firearm clause is because we have some very nice bucks on the place that I've been feeding.
-the dog clause is because the last guy would let loose his hound dog and would chase the deer all day long while he would bale hay.
What do you think?
HAY PRODUCTION LEASE AGREEMENT
This Lease Agreement ("Agreement") is made and entered into this ____ day of _____ 2024, by and between ___Me___, ("Lessor"), of ___my address___ and ___Hay guy_, ("Lessee"), of __his address_.
1. Premises: The Lessor hereby leases to the Lessee, and the Lessee hereby leases from the Lessor, the following described property: (my property), herein referred to as the "Premises." The "Production area" of the Premises consists of a total 110 acres of hay field consisting of native and Coastal Bermuda grasses.
2. Term: The term of this Lease shall commence on 1/1/2025 and shall terminate on 12/31/2027, unless extended or terminated sooner according to the provisions of this Agreement.
3. Rent: The Lessee agrees to pay the Lessor $8.00 per round bale made on the Premises. The rent shall be payable annually, on or before November 1st of each year. The amount paid will be reduced by the amount of an annual stipend (allowance, credit, subsidy) that Lessor will credit to Lessee's annual rent for maintenance of the Premises as defined below. Bale count will be provided by the Lessee to the Lessor within 24 hours of baling completion.
4. Use of Premises: The Premises are leased exclusively for the purposes of growing, harvesting, and selling hay. The Lessee shall not use the Premises for any other purposes without the prior written consent of the Lessor.
4.1 Lessee shall make at minimum 3 cuts on the Production area of the Premises. A cut may be in the form of hay cutting or shredding (brush cutting). The minimum 3 cuts does not apply in a documented season of severe drought.
4.1 Hunting or the discharge of firearms on Premises is prohibited except in the act of self-defense.
4.2 Animals (dogs, cats, pets) or individuals not directly related to the production of hay on the Premises are not allowed on the Premises.
5. Maintenance of Premises:
5.1 Maintenance: The Lessee shall maintain the Premises in good agricultural condition, suitable for hay production, including necessary fertilization, weed control, shredding, and pest control. Good agricultural condition will be measured against neighboring properties (I list the adjoining properties here of neighboring hayfields that look great/like the place used to look, almost all the time)
5.2 Stipends: Lessor will provide annual credit to rent due from Lessee in the form of $1,000 per application (maximum of $4,000 per year) of land maintenance by fertilization, weed control, shredding, and pest control. In no event shall the credit exceed the amount of cost (labor and materials) of each application, nor will any remaining balance be applied or carried over to future maintenance applications. Each application of maintenance shall be arranged and executed by Lessee upon written approval by Lessor. Lessor reserves the right to deny a requested maintenance or provide an alternative supplier (labor and materials) of maintenance.
5.3 Fertilization: Fertilizer shall be applied to the entire Production area of the Premises for each cutting and baling of hay in a given year. Fertilizer, including lime applications, shall meet recommendations of the most recent soil samples reported by a bona fide soil testing facility. Soil samples may be taken by Lessor or Lessee. Chicken litter may be substituted for traditional fertilizer not more than once in a 24-month period.
5.4 Weed Control: Weeds, including broadleaf weeds, Johnsongrass, invasive species and other grasses that are not the target hay species, shall be controlled by spraying the affected area of the Premises with recommended herbicides and/or shredding the entire production area at least once every 12 months. Weeds shall at no time, exceed a height beyond 4-feet high.
5.5 Pest Control: Lessor shall inspect Premises for pests (e.g., army worms, grasshoppers, stem maggots, etc.) twice per month from July 1st through October 31st each year. Lessor shall apply treatment following generally recommended guidelines to the affected area of the Production area of the Premise within 48 hours. Treatment thresholds for armyworms and grasshoppers are required when 3 or more units per square foot of the field are observed.
5.6 Cleanup: Within 3 weeks following any cut of the Premises, Lessor shall shred all areas of the Production area that were not cut, and tedder all areas of the Production area that were cut but not baled. All hay bales, both intact and broken, must be removed from the Premise within 3 weeks following any cut of the Premises.
6. Improvements of Premises: Any improvements or alterations to the Premises (e.g., irrigation systems, fencing, tree removal and trimming, earth movement, etc.) made by the Lessee must be pre-approved in writing by the Lessor. Upon termination of the Lease, such improvements shall become the property of the Lessor, unless otherwise agreed.
7. Insurance: The Lessee shall obtain and maintain insurance coverage in a minimum amount of $250,000 for the Premises adequate to cover any liabilities incurred as a result of the Lessee's operations. Proof of insurance shall be provided to the Lessor upon request.
8. Compliance with Laws: The Lessee agrees to comply with all federal, state, and local laws and regulations applicable to the production of hay and the general use of the Premises.
9. No Subletting: The Lessee shall not assign, sublet, or transfer any interest in this Lease Agreement or the Premises, in whole or in part, without the prior written consent of the Lessor.
10. Termination: The Lessor must provide the Lessee with a minimum of twelve (12) months' written notice before terminating this Lease Agreement for any reason, except in the case of a breach of contract by either party. The Lessee retains the right to terminate this Lease Agreement at any time, for any reason, by providing the Lessor with a minimum of thirty (30) days' written notice, except in the case of a breach of contract by either party.
If either party breaches this Lease Agreement, the non-breaching party shall provide written notice of the breach to the breaching party, specifying the nature of the breach in detail. The breaching party shall have thirty (30) days from the date of receiving such notice to cure the breach to the reasonable satisfaction of the non-breaching party. If the breach is not cured within this thirty (30) day period, the non-breaching party may terminate the Agreement immediately upon providing written notice to the breaching party.
Either party may terminate this Lease Agreement immediately upon written notice to the other party if any illegal, inappropriate, or abusive conduct occurs on the leased property. "Illegal, inappropriate, or abusive conduct" includes, but is not limited to, any activities that violate local, state, or federal laws; behavior that is harmful, dangerous, or inconsistent with the intended use of the property; or any form of abuse of the property, including but not limited to littering, vandalism, or destruction of the property.
Upon termination, all obligations under this Lease Agreement shall cease, except for any rent or other payments due up until the effective date of termination and any obligations arising from the breach or from illegal, inappropriate, or abusive conduct.
11. Force Majeure: Neither party shall be liable for any failure or delay in performing obligations under this Lease Agreement if such failure or delay is due to causes beyond their reasonable control, including but not limited to acts of God, natural disasters, war, terrorism, government actions, or other unforeseen events. The impacted party shall notify the other party as soon as possible and make reasonable efforts to resume performance. If the force majeure event continues for more than thirty (30) days, either party may terminate this Agreement with thirty (30) days' written notice.
12. Dispute Resolution: All disputes shall be resolved through mediation, and if unresolved, by binding arbitration under AAA rules. Arbitration will occur in the county of the Premises, with each party bearing its own costs. This is the sole method of dispute resolution, waiving the right to litigation except to enforce an arbitration award.
13. Miscellaneous:
13.1 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes any prior understandings or representations.
13.2 Amendments: Any amendments to this Agreement must be in writing and signed by both parties.
IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the date first above written.
[Lessor's Signature]
[Lessor's Name Printed]
[Lessee's Signature]
[Lessee's Name Printed]
It's 200 acres with 110 tillable/coastal hay pasture. It was beautiful in its "heyday" when my dad would work it, but in recent years before his death (and me out of state with medical care for my son), it just became neglect. Still looks great "most" of the year. Yields about 4-5 bales per acre on good cuts.
I found someone a couple years ago who pays me $8/bale (1k round bales) and he has only since fertilized it once, chicken littered it a couple years ago, and never weed killed. It's to be expected, but it sort of has become neglect again. He's made 2 cuttings each year. It seems that there's always an excuse for not fertilizing or maintaining: "price of fertilizer is too high", "armyworms got it", or "not enough rain" but this year with good rain and lower fertilizer prices the excuse was "price of hay is too low, so not worth it to cut".
I don't want my dad turning over in his grave by me dishonoring the place, so I'd like your help in looking over this contract that I drew up (with help from ChatGPT). It may seem wordy and drive off folks, but at this point, I'm not out to make much $ as I am keeping it in production. That's why I'm offering up to $4,000 credit towards him applying fertilizer/weed killing/shredding each year.
Some notes:
-the firearm clause is because we have some very nice bucks on the place that I've been feeding.
-the dog clause is because the last guy would let loose his hound dog and would chase the deer all day long while he would bale hay.
What do you think?
HAY PRODUCTION LEASE AGREEMENT
This Lease Agreement ("Agreement") is made and entered into this ____ day of _____ 2024, by and between ___Me___, ("Lessor"), of ___my address___ and ___Hay guy_, ("Lessee"), of __his address_.
1. Premises: The Lessor hereby leases to the Lessee, and the Lessee hereby leases from the Lessor, the following described property: (my property), herein referred to as the "Premises." The "Production area" of the Premises consists of a total 110 acres of hay field consisting of native and Coastal Bermuda grasses.
2. Term: The term of this Lease shall commence on 1/1/2025 and shall terminate on 12/31/2027, unless extended or terminated sooner according to the provisions of this Agreement.
3. Rent: The Lessee agrees to pay the Lessor $8.00 per round bale made on the Premises. The rent shall be payable annually, on or before November 1st of each year. The amount paid will be reduced by the amount of an annual stipend (allowance, credit, subsidy) that Lessor will credit to Lessee's annual rent for maintenance of the Premises as defined below. Bale count will be provided by the Lessee to the Lessor within 24 hours of baling completion.
4. Use of Premises: The Premises are leased exclusively for the purposes of growing, harvesting, and selling hay. The Lessee shall not use the Premises for any other purposes without the prior written consent of the Lessor.
4.1 Lessee shall make at minimum 3 cuts on the Production area of the Premises. A cut may be in the form of hay cutting or shredding (brush cutting). The minimum 3 cuts does not apply in a documented season of severe drought.
4.1 Hunting or the discharge of firearms on Premises is prohibited except in the act of self-defense.
4.2 Animals (dogs, cats, pets) or individuals not directly related to the production of hay on the Premises are not allowed on the Premises.
5. Maintenance of Premises:
5.1 Maintenance: The Lessee shall maintain the Premises in good agricultural condition, suitable for hay production, including necessary fertilization, weed control, shredding, and pest control. Good agricultural condition will be measured against neighboring properties (I list the adjoining properties here of neighboring hayfields that look great/like the place used to look, almost all the time)
5.2 Stipends: Lessor will provide annual credit to rent due from Lessee in the form of $1,000 per application (maximum of $4,000 per year) of land maintenance by fertilization, weed control, shredding, and pest control. In no event shall the credit exceed the amount of cost (labor and materials) of each application, nor will any remaining balance be applied or carried over to future maintenance applications. Each application of maintenance shall be arranged and executed by Lessee upon written approval by Lessor. Lessor reserves the right to deny a requested maintenance or provide an alternative supplier (labor and materials) of maintenance.
5.3 Fertilization: Fertilizer shall be applied to the entire Production area of the Premises for each cutting and baling of hay in a given year. Fertilizer, including lime applications, shall meet recommendations of the most recent soil samples reported by a bona fide soil testing facility. Soil samples may be taken by Lessor or Lessee. Chicken litter may be substituted for traditional fertilizer not more than once in a 24-month period.
5.4 Weed Control: Weeds, including broadleaf weeds, Johnsongrass, invasive species and other grasses that are not the target hay species, shall be controlled by spraying the affected area of the Premises with recommended herbicides and/or shredding the entire production area at least once every 12 months. Weeds shall at no time, exceed a height beyond 4-feet high.
5.5 Pest Control: Lessor shall inspect Premises for pests (e.g., army worms, grasshoppers, stem maggots, etc.) twice per month from July 1st through October 31st each year. Lessor shall apply treatment following generally recommended guidelines to the affected area of the Production area of the Premise within 48 hours. Treatment thresholds for armyworms and grasshoppers are required when 3 or more units per square foot of the field are observed.
5.6 Cleanup: Within 3 weeks following any cut of the Premises, Lessor shall shred all areas of the Production area that were not cut, and tedder all areas of the Production area that were cut but not baled. All hay bales, both intact and broken, must be removed from the Premise within 3 weeks following any cut of the Premises.
6. Improvements of Premises: Any improvements or alterations to the Premises (e.g., irrigation systems, fencing, tree removal and trimming, earth movement, etc.) made by the Lessee must be pre-approved in writing by the Lessor. Upon termination of the Lease, such improvements shall become the property of the Lessor, unless otherwise agreed.
7. Insurance: The Lessee shall obtain and maintain insurance coverage in a minimum amount of $250,000 for the Premises adequate to cover any liabilities incurred as a result of the Lessee's operations. Proof of insurance shall be provided to the Lessor upon request.
8. Compliance with Laws: The Lessee agrees to comply with all federal, state, and local laws and regulations applicable to the production of hay and the general use of the Premises.
9. No Subletting: The Lessee shall not assign, sublet, or transfer any interest in this Lease Agreement or the Premises, in whole or in part, without the prior written consent of the Lessor.
10. Termination: The Lessor must provide the Lessee with a minimum of twelve (12) months' written notice before terminating this Lease Agreement for any reason, except in the case of a breach of contract by either party. The Lessee retains the right to terminate this Lease Agreement at any time, for any reason, by providing the Lessor with a minimum of thirty (30) days' written notice, except in the case of a breach of contract by either party.
If either party breaches this Lease Agreement, the non-breaching party shall provide written notice of the breach to the breaching party, specifying the nature of the breach in detail. The breaching party shall have thirty (30) days from the date of receiving such notice to cure the breach to the reasonable satisfaction of the non-breaching party. If the breach is not cured within this thirty (30) day period, the non-breaching party may terminate the Agreement immediately upon providing written notice to the breaching party.
Either party may terminate this Lease Agreement immediately upon written notice to the other party if any illegal, inappropriate, or abusive conduct occurs on the leased property. "Illegal, inappropriate, or abusive conduct" includes, but is not limited to, any activities that violate local, state, or federal laws; behavior that is harmful, dangerous, or inconsistent with the intended use of the property; or any form of abuse of the property, including but not limited to littering, vandalism, or destruction of the property.
Upon termination, all obligations under this Lease Agreement shall cease, except for any rent or other payments due up until the effective date of termination and any obligations arising from the breach or from illegal, inappropriate, or abusive conduct.
11. Force Majeure: Neither party shall be liable for any failure or delay in performing obligations under this Lease Agreement if such failure or delay is due to causes beyond their reasonable control, including but not limited to acts of God, natural disasters, war, terrorism, government actions, or other unforeseen events. The impacted party shall notify the other party as soon as possible and make reasonable efforts to resume performance. If the force majeure event continues for more than thirty (30) days, either party may terminate this Agreement with thirty (30) days' written notice.
12. Dispute Resolution: All disputes shall be resolved through mediation, and if unresolved, by binding arbitration under AAA rules. Arbitration will occur in the county of the Premises, with each party bearing its own costs. This is the sole method of dispute resolution, waiving the right to litigation except to enforce an arbitration award.
13. Miscellaneous:
13.1 Entire Agreement: This Agreement constitutes the entire agreement between the parties and supersedes any prior understandings or representations.
13.2 Amendments: Any amendments to this Agreement must be in writing and signed by both parties.
IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of the date first above written.
[Lessor's Signature]
[Lessor's Name Printed]
[Lessee's Signature]
[Lessee's Name Printed]
