GrainsWest Winter 2020

of a discovery period in the rental agreement. “What happens if the landlord dies and the spouse or estate decides to sell the land?” said Good. “It is not likely the rental agreement will give the renter a right of first refusal, so rather than the renter one day seeing a for-sale sign on the land, this clause in the agreement allows for 60 days to discuss things.” The renter can then discuss options or plans with the landlord’s family or estate before the land goes on the market. 4. Good encourages the inclusion of a break-fee clause in the event the landlord decides to sell the land. “So, we have this three-year rolling lease, but partway through the year the landlord decides they are selling the land,” said Good. If they do so midway through the growing season, then the crop belongs to the renter, but as a fee for breaking the agreement, the landlord also agrees to refund one-year’s cash rent. Good said a properly worded rental or lease agreement simply makes good business sense. It’s not about lack of trust on either side. It merely ensures clarity of the terms and can be crafted in such a way that it is fair and protects both parties while also encouraging open communication. Edmonton EXPO Centre January 28 - 30, 2020 Canada’s Premier Crop Production and Farm Management Conference FarmTech 2020 features an outstanding line-up of speakers delivering more than 65 concurrent sessions covering the latest in technology, environment agronomy and farm business management. The Agricultural Showcase is home to the most innovative companies displaying their products and services along with special events and networking opportunities. THE PROSPEROUS RENTER Jonathan Small offers three tips to farmers who rent: 1. Good working relationships are important. Be a good communicator and keep your landlords informed. 2. Don’t put all your crops into one rental basket. Aim to work with multiple landlords to reduce risk. 3. Always be prospecting for more rental acres. Even though rental agreements may be in place, situations can change. Again, it’s good risk management to have rental options available to maintain or increase cropped acres.