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Farm Lease Agreements

Each year, several growers ask if there are sample lease agreements developed by OMAFRA. There are several different types of agreements but none specifically designed for tender fruit and grape growers. I have tried to highlight some key points that growers should consider when drawing up an agreement.

Lease Terms: (Example)

Property: Location and actual acreage leased

Commencement Date: January 1 (beginning of the year)

Termination Date: December 31 (end of the year)

Gross Rent: $______

Farm Property Taxes: To be paid by Landlord

Length of Lease: xxx years

Tenant and/or Landlord must give written notice for termination 60 days in advance. Must be agreeable to both parties.

Landlord must compensate Tenant for any expenses incurred up to the date of termination; fertilizers, sprays, labour, management and other costs related to the farm operation or if lease is terminated early. Can use the Establishment and Production Costs for Tender Fruit in Ontario or the Establishment and Production Costs for Grapes in Ontario as a guide.

Tenants has first option to renew or extend lease

Right of Way: The landlord agrees to give "quiet" possession of the leased premises allowing the tenant to care for and harvest the crops on the leased premises (i.e. bird bangers)

Use of the Land: The tenant agrees to perform and carry out the farming operations of: Peach and Grape Production. The tenant cannot remove any trees/vines unless agreed upon by the Landlord.

Transfer of property: Sale of the property recognizes the lease. If the landlord should sell or otherwise transfer title to the leased premises, the landlord shall do so subject to the provisions of this lease.

Premises Condition: As is. Upon termination premises to be left in a clean condition subject to reasonable wear and tear.

Sale of fruit: The tenant agrees/disagrees not to use the property as a "pick your own" operation.

Parking: The tenant agrees not to block roadway with autos, farm equipment and other farm produce.

Quiet Enjoyment: The tenant agrees to farm under "good stewardship", "best management practices" and abide by the The Farming And Food Production Protection Act (FFPPA) and Nuisance Complaints .

Activities Restricted: The tenant agrees to restrict other activities, alterations, signage, excessive noise unless related to farming or upon agreement with Landlord.

Income Support Payments: In the event of crop failure, market failure, or other related failures, the Tenant will receive any compensation or other reimbursement.

Termination of Lease: Grounds for termination of lease - If either party fails to carry out the terms of the lease, the lease may be terminated at any time by giving number of days notice by serving a written notice citing the instances and specifying a termination date of number of days from the date of such notice. In case of dispute, either party may contact a third party, such as the Ontario Ministry of Agriculture, Food and Rural Affairs or your local Municipal Bylaw Officer to act as arbitrator.

Acceptance Between:

The Tenant: (printed name, signature & date)

The Landlord: (printed name, signature & date)

Learn more

• OMAFRA Agreements and Stuctures website
• Establishment and Production Costs for Tender Fruit in Ontario
• Establishment and Production Costs for Grapes in Ontario