WHAT TYPE OF LEASE IS ACCEPTABLE?
Top The written lease should specify the agricultural assets subject to the lease, the location of the property, the volume of the lease (i.e., number of acres, pieces of equipment, number of animals) and the lease rate or terms. The lease should also specify the term of the lease and terms of payment under the lease. A commodity share lease does not have to be the traditional 50/50 lease terms. (Several good lease templates are available on the Iowa State University Ag Decision Maker website) The lease term shall be for at least two years, but not more than five years. An existing lease with an eligible beginning farmer is eligible if it meets the minimum two year and maximum five year term (upon application). The tax credit may be renewed at the end of the lease term through re-application and approval. The agricultural assets should be leased at a rate which is not substantially higher or lower than the market rate for similar agricultural assets leased within the same community, as
