| 2. Long-term leases
While most leases are short-term arrangements, a long-term lease can produce some very different outcomes for both the farmer tenant and the landlord. Long-term leases of five to 99 years enable the tenant to justify investments to improve the property, although the lease itself may not require or reward such improvements.
Advantages
-A lease of several years provides tenure security for the tenant, which can encourage the adoption of long-term conservation practices that decrease soil erosion, build soil nutrients and maintain farm structures.
-A longer tenure can also increase the farm operator’s connection to neighbours and the surrounding community.
-Longer terms enable the farmer to build the enterprise, markets, relationships with suppliers, and familiarity with the farm’s natural features.
Disadvantages
-A long-term lease binds the parties to the conditions of the lease for a longer period of time. This can be a concern for landowners who want flexibility in managing their land.
-It can also be detrimental to farmers who are still exploring what they want from a farm business.
-A good lease will address exit strategies for both parties.
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