How to Break a Farm Lease
Leasing farm property is an effective way to expand a farm business without having to acquire new land. When you arrange to lease a farm from someone, make sure the lease is very clear right from the beginning. It should note what kind of farming will take place; what kind, if any, of amendments to the soil or land are allowed; and the rights and responsibilities of both landlord and tenant. If one party or the other needs to break the lease, try to do it as quickly as possible and with the least amount of consequences to both parties.
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Instructions
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Read over your lease very carefully. Look for any stipulations or clauses that would allow you to vacate the property without paying, provide a "notice of intention to vacate" or allow you to sublease the property.
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Talk to your landlord about your situation. If you are facing a hardship of some sort, your landlord may be willing to work with you.
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Ask your landlord if she will allow you to find a new tenant, subject to her approval. This takes the burden of finding a new lessee off her and continues to put rent money in her pocket. Make sure you ask what her criteria for a new lessee are.
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Look for a legal reason to vacate the property without penalty. This will be harder when you are leasing just farm land; however, if you are leasing a house on the property, too, any code violation will allow you to vacate. Each state is different, but if you are lacking adequate heat, the roof leaks or you don't have window screens, you may be able to get out of your lease legally.
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Consider changing the terms of your lease to a flexible farm lease. If you still want to lease your property but are going through a financial hardship, talk with your landlord about changing the terms of the lease. For instance, you might be able to pay a lower monthly payment by pledging to your landlord a portion of your crops' profits when the harvest is in. As long as you both agree to the terms, you can amend the lease at any time.
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Consult a lawyer. If your relationship with your landlord becomes contentious, talk to a lawyer and find out what you can do legally to get out of your lease in your state. In some cases, your only option may be to arrange to pay the remaining amount due in the lease. If you are facing a financial hardship, however, and you vacate the property, allowing the landlord to lease it to someone else, you may be able to arrange smaller monthly payments.
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References
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