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Farming Agreement

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FARMING AGREEMENT

This Farming Agreement (the "Agreement") is entered into as of by and between the parties identified below.

Landowner

Operator (Farmer)

RECITALS

WHEREAS, Landowner is the record owner of certain agricultural premises described below and desires to engage Farmer to conduct agricultural operations on the premises in accordance with the terms of this Agreement; and

WHEREAS, Farmer represents that Farmer has the skill, experience and licensing required to perform the farming operations contemplated by this Agreement and agrees to perform such operations in a commercially reasonable manner and in compliance with applicable law; and

WHEREAS, the parties desire to set forth the scope of work, compensation, confidentiality and other material terms governing their relationship.

SCOPE OF WORK

Farmer shall perform the agricultural services described in this section on the land identified as the Premises. The services shall include planting, cultivation, irrigation, pest and weed control, harvesting, transport of harvested crops as specified, and customary seasonal maintenance, all in accordance with good agricultural practices.

PAYMENT TERMS

In consideration for the services provided by Farmer, Landowner shall pay Farmer in accordance with the following terms.

Any past-due payment shall accrue interest at the lesser of (i) the maximum rate permitted by law or (ii) . Late payments shall also be subject to recovery of collection costs and reasonable attorney fees incurred by the non-breaching party.

Check Direct deposit Other (describe below)

TERM AND TERMINATION

This Agreement commences on and shall continue in full force until unless earlier terminated as provided herein.

Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure the breach within the notice period specified above. Termination for cause shall not relieve the breaching party of liability for damages arising prior to termination.

CONFIDENTIALITY

The parties acknowledge that in the performance of this Agreement each party may obtain access to nonpublic business, financial, agricultural and technical information of the other party ("Confidential Information"). Each party agrees to (i) maintain Confidential Information in strict confidence, (ii) use Confidential Information solely for the purposes of performing under this Agreement, and (iii) not disclose Confidential Information to any third party except as required by law or with the prior written consent of the disclosing party.

INSURANCE AND INDEMNITY

Farmer shall maintain at Farmer's expense general liability and, where applicable, agricultural vehicle and crop insurance in commercially reasonable amounts. Farmer shall indemnify and hold harmless Landowner from any claims, losses or liabilities arising out of Farmer's negligent acts or willful misconduct in performing services under this Agreement, except to the extent caused by Landowner's negligence or willful misconduct.

COMPLIANCE WITH LAWS AND PRACTICES

Farmer shall at all times comply with applicable environmental, pesticide and labor laws and regulations. Farmer shall implement integrated pest management and other accepted agricultural practices reasonably required by Landowner to protect soil, water and adjacent properties.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict-of-law principles.

ENTIRE AGREEMENT

This Agreement, including all exhibits and attachments executed by the parties, 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. Any modification or amendment must be in writing signed by both parties.

MISCELLANEOUS

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. Neither party may assign this Agreement without the prior written consent of the other party, except that Landowner may assign to a successor in interest to the Premises.

Landowner (Print Name):

By:

Date:

Farmer (Print Name):

By:

Date:

Enter text✕

What a Farming Agreement Is and When It Matters

A Farming Agreement is a written contract that sets the terms for agricultural use of land between a landowner and an operator or tenant farmer. It typically covers the scope of operations, crop types or livestock, term and renewal, rent or profit-sharing, input and equipment responsibilities, insurance and indemnity, maintenance and repairs, and dispute-resolution procedures. Properly drafted Farming Agreements allocate risk, establish payment timing, and clarify who makes agronomic and seasonal decisions. Parties often record related encumbrances, secure signatures, and retain the original for regulatory, tax, and lending purposes.

Why a Farming Agreement Protects Operations and Finances

Farming Agreements formalize responsibilities, payment structures, and risk allocation between landowners and operators. They reduce disputes, support lender or grant requirements, document tax reporting, and provide a clear legal basis for operational decisions and liability allocation during the contract term.

Why a Farming Agreement Protects Operations and Finances

Who Typically Uses a Farming Agreement

Landowners, tenant operators, farm managers, and agribusiness lenders use Farming Agreements to define rights and obligations.

  • Landowners: protect property interests, set rent or crop-share terms, and limit liability.
  • Tenant farmers: secure tenure, outline crop plans, input responsibilities, and equipment access.
  • Lenders and investors: require agreements for collateral, underwriting, and loan covenants.

Parties should review tax, insurance, and regulatory obligations before signing and keep a signed copy for records.

Who Can Sign and Bind a Party

Landowner

The landowner or property owner named in the agreement has primary authority to execute the Farming Agreement. Signature confirms property rights, grants use permissions, and binds successors; corporate owners must sign through an authorized officer with title and authority documented.

Authorized Agent

An agent with a valid power of attorney or an officer authorized by corporate resolution may sign on behalf of a party. The agreement should reference the authority document and, if required by state law, include notarization or witness attestations.

Core Elements to Include in the Agreement

Core sections of a Farming Agreement structure operational, financial, and legal terms so parties can rely on an enforceable framework throughout the growing season and beyond.

Parties

Identify all parties by full legal name and business entity type, including mailing addresses and contact information. Specify whether parties are individuals, partnerships, LLCs, or corporations to clarify authority and tax reporting.

Term

Define the agreement start and end dates, renewal options, and conditions for early termination. Include harvest-specific timing where applicable to align obligations with crop cycles.

Compensation

Specify rent, cash payments, crop-share percentages, payment schedules, and conditions for adjustments tied to yield, market price, or input cost changes, including timing and method of payment.

Responsibilities

Allocate duties for planting, fertilization, pest control, irrigation, equipment use, labor hiring, maintenance, safety compliance, recordkeeping, environmental compliance, and day-to-day farm operations to avoid disputes.

Insurance

State required insurance types and minimum limits, which party pays premiums, and procedures for claims and subrogation; require certificates and proof before operations begin.

Dispute Resolution

Include governing law, mediation or arbitration clauses, venue for litigation, and procedures for notices and cure periods before termination to limit litigation risk.

Required Information and Critical Fields

Full Legal Names: Enter the exact legal names as on government ID
Property Description: Parcel ID, address, acreage
Term Dates: Start and end dates MM/DD/YYYY
Payment Terms: Amount, schedule, method, adjustments
Insurance Details: Policy types, limits, named insured
Signatures & Dates: Printed name, signature, MM/DD/YYYY

Step-by-Step: Completing a Farming Agreement

Follow these steps to complete a Farming Agreement accurately and limit disputes during execution and performance.

  • 01
    Gather Documents: Collect IDs, parcel records, insurance certificates.
  • 02
    Enter Parties: Type full legal names and contact details.
  • 03
    Define Terms: Set term, crop plan, and payment schedule.
  • 04
    Sign & Store: All parties sign, date, and retain originals.

Configuring an Online Workflow for the Agreement

Typical online configuration settings needed to prepare, route, and secure Farming Agreements in an eSignature platform.

Field Configuration
Document Upload PDF or DOCX; enable text fields
Fields & Logic Add conditional fields for crop type and amounts
Authentication Email link plus optional SMS or ID verification
Signing Order Specify sequential or parallel signer flow

Where to Send and File Signed Copies

Typical routing steps after execution indicate where signed Farming Agreements should be filed, who receives copies, and how to notify stakeholders.

  • Owner Copy: Provide signed copy to landowner for records.
  • Operator Copy: Operator retains copy for operational reference.
  • Lender/Agent: Send to lender or insurer if required.
  • County Records: Record related instruments if statute requires.

Delivery Methods and Signing Options

Choose distribution and authentication methods that match risk, regulatory requirements, and signer accessibility for Farming Agreements.

  • Email: Secure email with signed PDF attachment.
  • Signing Link: One-time link with optional access code.
  • In-Person: Tablet or kiosk signing with witness.

Key Dates and Deadlines to Track

Observe contract dates, insurance proofs, harvest cycles, and tax reporting deadlines when administering Farming Agreements.

Effective Date:

Obligations start on the MM/DD/YYYY effective date.

Insurance Proof Deadline:

Provide certificates before field operations begin.

Payment Schedule:

Follow stated due dates or agreed triggers.

Tax Reporting:

Retain records for IRS timelines and reporting.

Notice Periods:

Follow cure and termination notice windows in contract.

Milestones: From Negotiation through Settlement

Key milestones track negotiation, execution, seasonal performance, and post-harvest accounting for the Farming Agreement lifecycle.

01

Negotiation

Draft terms, confirm insurance, and agree payment structure.

02

Execution

All parties sign and date, initial exhibits as required.

03

Operational Start

Begin planting and field operations per approved plan.

04

Harvest & Settlement

Measure yields, calculate shares, and remit final payments.

Common Preparation Mistakes to Avoid

  • Vague compensation clauses lead to disputes over rent or crop-share calculations when yields or market prices fluctuate; specify formulas, timing, and remedies to avoid ambiguity.
  • Failing to attach or reference required exhibits, maps, or input budgets can leave expectations unclear and complicate enforcement and lender review.
  • Using incorrect legal names or unsigned signature blocks causes tax and title issues; confirm identity and obtain full execution from authorized signers.
  • Neglecting insurance requirements or proof of coverage increases exposure after loss events; require certificates and periodic verification before operations begin.

Risks and Consequences of an Incorrect Agreement

Contract Disputes: Litigation costs and delays.
Tax Penalties: Incorrect reporting, backup withholding.
Loss Claims: Denied insurance recoveries.
Loan Default: Lender triggers or covenant breaches.
Operational Interruptions: Delayed planting or harvest operations.
Invalid Signatures: Non-enforceable obligations.

Practical Examples of Farming Agreement Use

Real-world examples show how Farming Agreements resolve operational responsibilities, protect investments, and streamline seasonal settlements.

Family Farm Share

A multi-generation family formalized a profit-share arrangement to manage drought years and investment decisions.

  • Profit-share adjusted by yield.
  • The written formula reduced disputes, enabled a bank to accept the agreement as collateral, and clarified responsibilities for seed, fertilizer, and irrigation, shortening settlement time after harvest.

Commercial Lease

A large operator leased marginal land to a contractor with fixed annual rent and maintenance clauses to prevent soil degradation.

  • Fixed rent with maintenance obligations.
  • Clear repair responsibilities and insurance clauses reduced litigation risk, allowed equipment financing, and provided a transparent method for settling crop loss claims after a storm.

eSignature Vendor Pricing and Feature Snapshot

Comparison of eSignature vendor pricing and feature availability relevant to executing Farming Agreements; signNow is listed first in the vendor column order.

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 free trial Yes Yes Yes Yes
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About Farming Agreements

Common questions about drafting, signing, and enforcing Farming Agreements, including eSignature legality, notarization options, required fields, and record retention obligations under U.S. law.


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