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Agricultural Disclosure Agreement

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AGRICULTURAL DISCLOSURE AGREEMENT

This Agricultural Disclosure Agreement (the Agreement) is made as of between Disclosing Party: , Address: ; and Receiving Party: , Address: .

RECITALS

WHEREAS, Disclosing Party possesses certain agricultural information, records, and knowledge concerning the real property described below that relate to agricultural operations, chemical applications, nutrient management, livestock, irrigation, and related matters (collectively, Agricultural Information); and

WHEREAS, Receiving Party desires to receive, and Disclosing Party is willing to disclose, specified Agricultural Information for the purpose of evaluating, negotiating, consummating, or managing a transaction, lease or other permitted use concerning the property identified as: Parcel/ID:

WHEREAS, the parties desire to set forth the terms and conditions governing disclosure, use and protection of such Agricultural Information.

NOW, THEREFORE

In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 "Agricultural Information" means all oral, written, electronic or other information relating to agricultural operations on the Property, including but not limited to pesticide, herbicide and fertilizer application records, manure management, livestock inventories, irrigation and drainage systems, well locations, nutrient management plans, crop history, equipment and storage facilities, conservation or easement instruments affecting farming use, and records of spills, citations or remedial actions.

1.2 "Confidential Information" means all Agricultural Information disclosed by Disclosing Party to Receiving Party under this Agreement, except as expressly excluded in Section 3.

2. DISCLOSURE OBLIGATIONS

2.1 Disclosing Party shall disclose to Receiving Party all known material Agricultural Information concerning the Property that is reasonably necessary for the Permitted Purpose. Such disclosures shall include, without limitation, the categories checked below and any written records attached or provided contemporaneously.

Select categories being disclosed (check all that apply):

3. EXCLUSIONS

3.1 Confidential Information does not include information that: (a) is or becomes generally available to the public other than by a breach of this Agreement; (b) was in Receiving Party's possession without restriction prior to receipt from Disclosing Party as demonstrated by written records; (c) is independently developed by Receiving Party without use of or reference to Disclosing Party's Confidential Information; or (d) is rightfully obtained by Receiving Party from a third party without restriction and without breach of an obligation to Disclosing Party.

4. USE, CONFIDENTIALITY AND HANDLING

4.1 Receiving Party shall use Confidential Information solely for evaluating and pursuing the transaction or purpose described herein (Permitted Purpose). Receiving Party shall not use Confidential Information for any agricultural management, public disclosure, sale, or other purpose except as expressly permitted.

4.2 Receiving Party shall protect Confidential Information with the same degree of care it uses to protect its own confidential materials, but in no event less than a reasonable standard of care. Receiving Party shall restrict access to Confidential Information to those employees, agents, consultants and professional advisors who have a need to know and are bound by confidentiality obligations at least as protective as those in this Agreement.

5. PERMITTED DISCLOSURES

5.1 If Receiving Party is required by law, regulation, or valid order of a court or governmental authority to disclose Confidential Information, Receiving Party shall, to the extent permitted by law, provide prompt written notice to Disclosing Party and cooperate in any reasonable effort by Disclosing Party to obtain a protective order or other remedy. Receiving Party will only disclose that portion of Confidential Information that is legally required to be disclosed.

6. REPRESENTATIONS AND WARRANTIES

6.1 Disclosing Party represents that, to Disclosing Party's knowledge after reasonable inquiry, the Agricultural Information provided is true and accurate in all material respects as of the date disclosed. Disclosing Party does not warrant that the information is complete or that undisclosed matters do not exist.

6.2 Receiving Party acknowledges that Disclosing Party is not making any representations or warranties, express or implied, regarding suitability of the Property for any particular agricultural use, compliance with environmental laws, or the absence of contamination except as expressly provided in a separate definitive agreement between the parties.

7. INDEMNIFICATION

7.1 Each party shall indemnify, defend and hold harmless the other party from and against any loss, liability, damage, cost or expense (including reasonable attorneys' fees) arising from the indemnifying party's breach of this Agreement or from the indemnifying party's negligence, intentional misconduct, or willful misrepresentation in connection with the disclosures made under this Agreement.

8. TERM; SURVIVAL

8.1 This Agreement shall commence on the Agreement Date and continue for a period of years, unless earlier terminated by mutual written agreement. The obligations of confidentiality and use contained herein shall survive termination for a period of five (5) years from termination, except that trade secrets and information subject to longer legal protections shall be protected for the full period required by applicable law.

9. NOTICES

9.1 All notices, requests, consents and other communications required or permitted under this Agreement shall be in writing and delivered to the parties at the addresses set forth below or to such other address as either party may designate by notice in accordance with this Section. Notices are effective upon personal delivery, upon receipt by certified mail, return receipt requested, or upon confirmed electronic delivery.

10. AMENDMENT; WAIVER; COUNTERPARTS

10.1 This Agreement may be amended or modified only by a written instrument signed by both parties. No waiver of any provision shall be effective unless in writing and signed by the party waiving compliance. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

11. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

11.1 This Agreement shall be governed by and construed in accordance with the laws of the state specified here: , without regard to its conflicts of law provisions.

11.2 This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings and representations, whether written or oral.

11.3 If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect, and the parties shall negotiate in good faith to replace the invalid provision with a valid provision that achieves, to the extent possible, the original economic, legal and commercial objectives of the invalid provision.

12. MISCELLANEOUS

12.1 Remedies. The parties acknowledge that monetary damages may be insufficient to remedy a breach of the confidentiality obligations hereunder and that the non-breaching party shall be entitled to seek injunctive or other equitable relief, in addition to any other remedies available at law or in equity.

Disclosing Party:

By:

Date:

Receiving Party:

By:

Date:

Enter text✕

What the Agricultural Disclosure Agreement Is and When It Applies

Agricultural Disclosure Agreement is a written document used in U.S. farming and land transactions to disclose material facts about agricultural operations, environmental conditions, pesticide use, water rights, or other farm-related issues that could affect a buyer, lessee, lender, or neighbor. The agreement identifies the parties, describes the property and operations, and lists known risks or obligations tied to agricultural activity. It helps allocate responsibility and informs decision-making in sales, leases, financing, and easement negotiations while documenting consent to specific land-use conditions.

Why a Clear Agricultural Disclosure Agreement Matters

An Agricultural Disclosure Agreement reduces transaction risk by revealing relevant farm practices and environmental conditions, clarifying liabilities and required disclosures under state law, and creating an auditable record of consent and notice that supports contract enforceability and informed decision-making.

Why a Clear Agricultural Disclosure Agreement Matters

Typical Parties That Use the Agricultural Disclosure Agreement

Typical parties who complete and receive an Agricultural Disclosure Agreement include buyers, sellers, landlords, tenants, lenders, and environmental consultants involved in farm property transactions.

  • Prospective buyers and lessees requiring full disclosure of farm practices and risks.
  • Sellers or landlords documenting known conditions to limit future liability.
  • Lenders and title companies evaluating environmental liabilities and collateral value.

Use the agreement to record disclosures formally and to create a clear basis for indemnities, remedies, or negotiated concessions.

Core Sections to Include in a Professional Agricultural Disclosure Agreement

Core sections of a professional Agricultural Disclosure Agreement define parties, property, disclosed matters, representations, obligations, remedies, and signature blocks with dates.

Parties

Identify each contracting party with full legal name, role (buyer, seller, tenant, lessor), mailing address, and a designated representative for notices; include corporate entity details when applicable to bind organizations.

Property

Describe the land and improvements by legal description, parcel number, acreage, and physical address; attach maps or plats as exhibits to eliminate ambiguity about the area subject to disclosure.

Operations

Detail current and recent agricultural activities, pesticide and fertilizer use, livestock operations, irrigation practices, storage or processing facilities, and any chemical storage that could affect environmental or health risk assessments.

Known Risks

List identified environmental hazards, history of contamination, regulatory notices, prior enforcement actions, water-right disputes, drainage problems, or ongoing litigation that could materially affect property use or value.

Representations

State seller or discloser representations about accuracy of information, absence of undisclosed hazards, authority to disclose, and any disclaimers limiting liability or defining inspection rights for the recipient.

Remedies

Specify remedies for breach, indemnification obligations, cost allocation for remediation, escrow arrangements, and procedures for post-closing discovery or correction of disclosed conditions.

Stepwise Process to Prepare and Execute the Agreement

Complete the Agricultural Disclosure Agreement in stages to ensure accuracy and proper authorization before execution.

  • 01
    Gather facts: Collect environmental reports, permits, and pesticide records.
  • 02
    Draft disclosures: Fill fields with precise descriptions and attach exhibits.
  • 03
    Review parties: Confirm legal names and authority to sign.
  • 04
    Execute: Sign, date, and notarize if required.

Configuring an Online Workflow for the Agreement

Configure an online workflow to place fields, assign signers, set authentication, and enable final delivery of the Agricultural Disclosure Agreement.

Field Configuration
Signer Order Specify signing sequence and routing
Authentication Email, SMS code, or KBA as required
Form Fields Add signature, date, initials, and conditional fields
Delivery Send completed PDF to all parties and store audit trail

Technical Requirements for Sharing and eSigning

Platforms for sharing and eSigning the Agricultural Disclosure Agreement should support PDF and DOCX formats, audit trails, and secure storage.

  • Formats: PDF and Word DOCX formats
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security: TLS 1.2/1.3; AES-256 at rest

How eSubmission and eSigning Typically Work

Typical eSubmission workflow moves documents through preparation, signer assignment, authentication, signature, and final delivery stages.

  • Upload: Upload the completed agreement to the eSign platform.
  • Place Fields: Insert signature, initial, and date fields for each signer.
  • Authenticate: Choose email, SMS, or stronger ID proofing.
  • Complete: Signers execute and system issues certificate of completion.

Key Timing Considerations and Deadlines

Be mindful of timelines for disclosure delivery, acceptance, closing, and any statutory notice periods that affect remedies or liability allocation.

Disclosure Delivery:

Deliver before closing or per contract schedule.

Acknowledgment of Receipt:

Buyer should acknowledge receipt in writing promptly.

Closing Date Effects:

Disclosures must be resolved or escrowed at closing.

Remediation Notice Period:

Allow reasonable cure period for discovered conditions.

Record Retention Start:

Retention begins on effective date or closing date.

Common Preparation Pitfalls to Avoid

  • Incomplete property description leads to ambiguity and later disputes; ensure parcel numbers, acreage, and maps are attached and cross-referenced to avoid litigation over omitted land.
  • Vague descriptions of agricultural practices, such as 'use of chemicals,' cause disagreement; list specific substances, application timing, and amounts where possible for clarity and regulator review.
  • Failing to verify signatory authority for corporate entities causes invalidation; include title, corporate resolution, or attach authorization documents to confirm the signer's capacity.
  • Not accounting for statutory exceptions to electronic execution (e.g., certain court filings or wills) can render signatures invalid; confirm applicability of ESIGN/UETA before e-signing.

Consequences of Inaccurate or Missing Disclosures

Tax Penalties: Missing or incorrect TIN triggers 24% backup withholding.
Contract Rescission: Buyer may void transaction for undisclosed material defects.
Remediation Costs: Discloser may bear cleanup and legal expenses.
Regulatory Fines: Violations can lead to state or federal enforcement.
Title Issues: Undisclosed liens or easements impair transferability.
Insurance Exclusions: Policies may exclude damages from undisclosed hazards.

Security and Compliance Features to Look For

Encryption in Transit: TLS 1.2/1.3 required.
Encryption at Rest: AES-256 encryption for stored documents.
Certifications: SOC 2 Type II and ISO 27001.
HIPAA Support: BAA available for covered entities.
Audit Trail: Detailed logs: timestamps and IPs.
Access Controls: Role-based access and SSO options.

Practical Examples of Agricultural Disclosure Use

Real-world examples show how Agricultural Disclosure Agreements resolve disputes, support financing, and allocate remediation responsibilities.

Farm Sale

Before selling a 120-acre property, the seller documented decades of pesticide applications and onsite chemical storage in the disclosure.

  • Buyer required escrow for potential remediation.
  • The agreement allocated remediation responsibility, established escrow funding, granted inspection rights, and limited seller liability to known and documented conditions, which avoided post-closing claims and satisfied the lender's environmental review.

Lease Agreement

A landlord used a disclosure agreement when leasing pastureland, listing prior manure spreading, composting, and nutrient management practices.

  • Tenant accepted specific operational limits.
  • The lease referenced the disclosure, required permit compliance, set fencing and buffer responsibilities, and provided a process to address nutrient runoff claims, reducing dispute frequency and clarifying insurance responsibilities between parties.

Representative eSignature Pricing and Feature Comparison

Compare representative starting prices and core capabilities among common eSignature providers for Agricultural Disclosure Agreement workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Agricultural Disclosure Agreements

Common questions about completing, signing, and storing Agricultural Disclosure Agreements and guidance to avoid procedural or legal errors.


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