Rental duration – Shows when it starts and how long it lasts. While not a basic condition of a lease, this section should also consider the renewal of the lease if the parties wish to maintain the lease for a one-year period, including when and how such an extension will take place. Under the Ontario Fraud Act, all documents that are of interest to the land must be written. A written tenancy agreement is advantageous for both the landlord and the tenant, as it provides both a record of what they have agreed. This is particularly important for cultural equity leasing contracts where costs are shared between owners and owners. A written rental contract: income assistance, grants, refunds – The written agreement should clearly define how payments are distributed by government agencies or marketing agencies. This is the most important thing in the case of a plant share lease. It can also be used to estimate how the proportion of crops can be adjusted when some of them have more costs, such as new technologies. B or the contribution of the equipment. These points clarify the lease and provide talking points for landlords and tenants in the formulation of the tenancy agreement: it is important to ensure that the share of the harvest is profitable for both parties. A common method of calculating the share of the crop is called the “contribution method.” Building Repairs, Fences and Improvements – A clause that indicates who is responsible for repairing buildings, fencing and other improvements and how costs are distributed.
A common practice is to make the tenant responsible for all minor repairs and reimburse the landlord for improvement costs that have a lasting benefit longer than the duration of the tenancy. Tenants or homeowners can separately insure their share of the crop by purchasing insurance coverage from a private company or through AGRICORP, provincial plant insurance. Property that any landlord and tenant should take into account should also be included in the rental agreement: any form of business contract requires a great deal of mutual respect and trust. Renting land is no different. To be successful, the tenancy agreement must satisfy both the landlord and the tenant. Before entering into a tenancy agreement, landlords and tenants should consider more than the price. Conciliation between the lessor and the tenant and the fairness of the lease are important aspects. Agricorp Declaration – Owner and tenant must inform AGRICORP of any agreement regarding crop sharing. Dispute Resolution – An arbitration or conciliation clause in the written agreement describes how to deal with disagreements that tenants and landlords cannot resolve. The most common practice is to appoint a mutually agreed third party, acting as a mediator or arbitrator.
Crop-Share-Leasing is not as common as flexible cash or cash leases in Ontario. Traditionally, agreements on harvest shares are based on one-third/two-thirds or one-quarter/three-quarters of the distribution of crops between the owner and the tenant. Typically, the landlord pays the property taxes, while the tenant provides all the machinery, labour and plant inputs. Obtaining a portion of the crop as a rent payment is not considered farm income from the Canada Revenue Agency. However, if the owner shares the cost of inputs with the tenant, the portion of the crop can be accounted for as farm income. Owners who wish to maintain their agricultural status should take this type of participation in the crop into account. In this fact sheet, “Crop Share” refers to an agreement in which the owner shares input costs with the tenant.