Landowner and tenant tips for conservation leases

By Blake Jackson

Landowners and tenants often face challenges when discussing conservation practices in farm leases due to differing goals and expectations. However, open communication and clearly outlined provisions can help address these tensions and create mutually beneficial agreements.

“Often, both the landowner and the tenant want what is best for the leased ground and its productivity,” Jacob Hefley, an agribusiness specialist at the University of Missouri Extension said. "However, landowners are often more focused on long-term productivity, while tenants are more concerned about short-term productivity. When considering incorporating a conservation practice into a farmland lease, the landowner and the tenant need to come to the table with an open mind about how the practice can be beneficial to all involved.”

Hefley highlights three key topics for landowners and tenants to consider:

• Outside Contracts: Discuss any existing or potential contracts with government agencies, ecosystem markets, or NGOs that incentivize conservation practices. These contracts may have specific requirements and payment provisions that need to be addressed in the lease agreement.
• Responsibilities of Each Party: Clearly define the roles and responsibilities of both the landowner and tenant in implementing conservation practices. Consider the costs associated with these practices, including labor and materials, and determine who will be responsible for them.
• Life of the Conservation Practice: Discuss the duration of the conservation practice in relation to the lease term. Some practices may require a multi-year commitment, which can impact production and return on investment. Clearly outline these expectations in the lease agreement.

By addressing these topics, landowners and tenants can develop lease agreements that incorporate conservation practices while maintaining a productive and mutually beneficial relationship.

MU Extension's new guide, "Incorporating Conservation Provisions in Leases," provides valuable resources to assist in these discussions and ensure a successful outcome.

Photo Credit: gettyimages-zoran-zeremski