FARM LEASE BID SHEET - CASH RENT

Transcription

1 Owner: Des Moines County Conservation c/o Chris Lee, Executive Director Washington Road West Burlington, IA (319) Bids Due: FARM LEASE BID SHEET - CASH RENT Harold & Mildred Linder Conservation Area Bids will be received by the Owner at Washington Rd., West Burlington, IA until 3:00 PM on November 6, The selection decision for the winning bidder will be made at the Des Moines County Conservation Board regular monthly meeting on November 7, 2018 at the Conservation Office beginning at 5:30 PM. Des Moines County Conservation reserves the right to reject any and all proposals. Tenant (Bidder): Name: Address: Phone: Bid Amounts: Tract Field Acres Field/Crop Type Annual Rent Bid Amount NHEL/Crop $ NHEL/Crop $ * 6.20 CRP (Exp. 2021)* $ Total Annual Rent $ * Annual CRP rental rate on this field is $171/acre for a total payment of $1,060/year. 1 P a g e

2 The bidder hereby certifies that no other principal is involved in or has an interest in this proposal; that the bidder has thoroughly examined the specifications and this contract form and is aware of the provisions contained herein; that the bidder has examined the lease site and understands the quantities of work required by the lease; that the bidder proposes to timely furnish the necessary supplies and materials in the quantities required and to furnish the machinery, equipment, labor and expertise necessary to competently farm and maintain the land covered in this lease by the time(s) specified and for the annual rental amounts proposed. Certification The signing of this Farm Lease Bid shall serve as an unsworn declaration that, I (Tenant) hereby certify under penalty of perjury under the laws of the United States and the State of Iowa that I have read, understand, and accept the provisions contained in the attached Farm Lease. Signature of tenant: Date: 2 P a g e

3 CASH RENT FARM LEASE Example Only - To be executed upon selection of bidder THIS LEASE ("Lease") is made between the Conservation Department of Des Moines County, Iowa (Conservation Board) ("Owner"), whose address for the purpose of this lease is Washington Road, West Burlington Iowa and, ("Tenant"), whose address for this purpose of this Lease is. THE PARTIES AGREE AS FOLLOWS: 1. PREMISES. In consideration of the rent specified below, the Des Moines County Conservation Board hereby leases to the Tenant the following described area, on land known as the Harold and Mildred Linder Conservation Area Property located at th St., Sperry, IA in Section 27 of Franklin Township, Des Moines County, Iowa. Owner leases to Tenant the following real estate situated in Des Moines County, Iowa (the "Real Estate") the following Tract and field numbers on USDA farm number 5577 (see attached maps): Tract number 2445 field number 1* containing acres Tract number 2590 field number 1* containing 7.1 acres Tract number 4675 field number 4 containing 6.2 acres enrolled in the Conservation Reserve Program *The field that spans Tracts 2445 and 2590 are accessible for farming purposes from Iowa City Road to the east via recorded easement. with possession by Tenant to commence on March 1, The Tenant has had or been offered an opportunity to make an independent investigation as to the acres and boundaries of the premise. 2. TERM. The term of this lease is from March 1, 2019 to February 28, 2022 inclusive (2019 through 2021 crop years). Each party reserves the right to terminate this lease provided written notice to the other party. All notices of termination of this lease shall be as provided by law. The Owner reserves the right to extend this lease for up to five (5) additional years (through the 2026 crop year), by mutual agreement of both parties. In such case, the Tenant and Owner will negotiate the following year s cash rent amount on an annual basis. Both parties will certify the agreed upon cash rent amounts via signed addendum by December 31 of the year preceding the year for which the rental rate will apply. 3 P a g e

4 3. RENT. Tenant shall pay to Owner as rent for the Real Estate (the rent): Tract Field Acres Field/Crop Type Annual Rent NHEL/Crop $ NHEL/Crop $ * 6.20 CRP (Exp. 2021)* $ Total Annual Rent $ * Annual CRP rental rate on this field is $171/acre for a total payment of $1,060/year. Participation on these farms in any current or future contracts with the U.S. Department of Agriculture or any state for crop production control or soil conservation, the observance of the terms and conditions of such program(s), and the division of farm program payments, is required of the Tenant as part of this lease. Future participation in additional such programs beyond those which are under contract at the time of execution of this lease requires Owner's consent. Payments from participation in these programs shall be divided 0% Owner, 100% Tenant. All Rent is to be paid to Owner at the above address or at such other place as Landlord may direct in writing. The Tenant shall pay the annual rent amount to the Owner on or before March 1 st of each crop year. Rent not paid or delivered when due shall bear interest until paid or delivered at the rate of 5.25% per annum. 4. CARE OF PROPERTY. The Tenant agrees that he or she will: a. Cultivate and otherwise operate the property in accordance with generally recognized and approved agricultural practices. b. Operate the property in conformity with all applicable conservation plans or programs including but not limited to those subject to the jurisdiction of USDA and its related agencies. 5. ENVIRONMENTAL COMPLIANCE. The Tenant agrees to notify the Owner of the existence of any known conditions on the property that are, or might reasonably be deemed to be in violation of environmental regulations, or which may result in liability or damage to the Owner. The Tenant shall not dispose of any chemicals on any land covered by this lease. 6. MACHINERY AND EQUIPMENT. The Tenant shall be responsible for providing the machinery and equipment necessary for planting, cultivating and harvesting the crops, and for any other agricultural operations incidental to operating the property covered by this lease. All costs of purchasing, renting, leasing and operating the machinery and equipment, including the cost of custom operations, shall be paid by the Tenant, except as otherwise specified herein. 7. CUSTOM FARMING. The Owner may utilize this lease to provide additional enhanced wildlife habitat and vegetation management at locations within the managed area. The Tenant is required to, at the Owner s direction, provide inputs, machinery and labor for projects on any such land. The Owner will provide a list of projects to the Tenant and will approve the inputs and machinery practices required. By September 30 of each lease year, the Tenant will provide the Owner with a list of Owner approved inputs and machinery practices used in performing work on Owner projects. 4 P a g e

5 The Tenant will receive a credit on rent payment based upon the Tenant s cost for buying the inputs and using Iowa State University s average custom rates for each practice. ANY CREDITS ARE TO BE APPROVED BY THE OWNER PRIOR TO THEIR USE. FAILURE TO PROVIDE INPUTS AND/OR MACHINERY AT DIRECTION OF THE OWNER WILL RESULT IN LEASE TERMINATION. 8. VIOLATION OF CONSERVATION PLAN. The Tenant shall be liable to the Owner for any value received from a crop planted in violation of the Conservation Plan. 9. CHEMICALS. Only herbicides, which will not interfere with planned crop rotations, will be allowed on land under this lease. In the event of improper application of herbicides that results in damage to the crop planted in the following year, the Tenant shall be liable to the Owner for fifty dollars per acre for each acre damaged. The Tenant shall be liable to the Owner for damage caused to the crop and further costs of reseeding or restoring the crop. The Owner, prior to application shall approve all insecticides used on land under this lease. Manure application to land under the Owner jurisdiction is prohibited unless prior approval, in writing, is issued by the Owner. 10. WEED CONTROL. The Tenant shall be responsible to control all noxious weeds on the land under this lease. 11. FALL TILLAGE. Fall tillage will not be permitted without written approval of the Owner. 12. GRAZING. Livestock is prohibited on all land under this lease. 13. STALKS AND SILAGE. Corn may not be harvested for silage nor may it be harvested with any machine which chops cornstalks and the Tenant agrees not to burn or remove any stalks or stubble from land under this lease without written permission from the Owner. 14. HAY HARVEST. If applicable, hay may be cut during the periods designated in the Conservation Plan. All stored hay remaining on the land under this lease after October 1 of each crop year shall become property of the Owner. 15. TENANT S USE OF LAND. The use by the Tenant of the land described herein is limited to agricultural cropping purposes only. Storage of equipment and produce is prohibited, except hay storage as allowed in item 14 above. 16. OWNER S RIGHT OF LAND USE. The Owner reserves the right to perform activities and duties on the land under this lease that are necessary for the management and maintenance of adjacent lands owned and administered by the Owner. If the Owner required the land under this lease for other conservation purposes, the Tenant shall relinquish all claims to the land on demand by the Owner at the end of the current crop year, consistent with Chapter 562 of the Code of Iowa. The Owner shall not be liable for any damages for such termination. 17. PUBLIC USE OF THE LAND. The leased area is subject to concurrent use for recreational purposes. The Tenant shall not inhibit any lawful use of the land under this lease by the public, including but not limited to, use by the public for hunting and fishing as described by the rules of the Owner and the laws of the State of Iowa. 18. ASSIGNMENT-SUBLEASING. The Tenant agrees not to assign this lease to any other person, nor sublease all or any part of the property described herein without written permission from the Owner. 19. NO AGENCY. Tenant is not an agent of the Owner. 5 P a g e

6 20. FARM PROGRAMS. Acreage figures appearing in this lease may not be the basis for federal farm program payments. It shall be the Tenant s responsibility to determine the extent of farm program benefits that may be available. The inclusion, by the Tenant, of land under this lease in any agreement under any United States Department of Agriculture program will be allowed only if it is compatible with the Management Plan established for the area and in accordance with item 3 above. All payment under federal farm programs shall be divided as follows: 100% to Tenant. 21. EXPIRATION OF TERM. The Tenant covenants with the Owner at the expiration of the term of this lease, to yield up use of the leased area to the Owner, without further demand or notice, in as good order and condition as when the same was entered upon by the Tenant, loss by ordinary wear and tear is excepted. The Tenant shall be liable to the Owner for reasonable compensation for any damage to the property, including the access easement, for which the Tenant is legally responsible. 22. DEFAULT. If the Tenant fails to comply with any of the terms of this lease, the Owner shall serve notice demanding redress within a specified period of time. If compliance with the demand is not met within the specified period, the Owner may proceed to collect any money that may be due and payable and terminate this lease. 23. INDEMNIFICATION. The Tenant agrees to jointly and severally indemnify and hold the Owner, its successors, and assigns harmless from and against all liability, loss, damage or expense resulting from the failure of the Tenant to fully perform and comply with the terms of this lease. Neither party shall hold the other responsible for damages or delay in performance caused by acts of God, accidents, or other events beyond the control of one or the other s employees or agents. The Tenant consents to the jurisdiction of the courts of the State of Iowa to hear, determine, and render judgments as to any controversy arising hereunder, and agrees that this lease shall be governed by and construed according to the laws of the State of Iowa. 24. FAILURE TO PERFORM. The Tenant agrees that if he or she fails to plant, fertilize and harvest the crops, or to cut or spray weeds, or do any other act required by this lease for the proper operation and management of the premises at the proper time and in the proper manner, or if he or she assigns this lease or subleases the premises in violation of item 16 above, the Owner may terminate this lease after giving the Tenant five (5) days written notice. 25. INSOLVENCY OF TENANT. The insolvency of the Tenant, a receiver being appointed to take possession of all or substantially all of the property of the Tenant, the making of a general assignment for the benefit of creditors by the Tenant, or the filing by or against the Tenant under provisions of the Federal Bankruptcy Code (or any successor law or any state insolvency laws), shall terminate this lease and entitle the Owner to conduct all agricultural operation of the premises. 26. SECURITY INTEREST. The Tenant hereby grants to the Owner a security interest in all of the crops grown or to be grown on land covered by this lease. An UCC-1 shall be executed and delivered to the Owner by the Tenant when the total estimated lease amount exceeds $10,000. Further, the Owner shall have a landlord s lien as set forth by the Iowa Code, Chapter AMENDMENTS. The terms of this lease may only be amended by mutual agreement, which must be in writing and signed by both parties and attached to and made part of this lease. The Director for the Owner must sign all amendments. 6 P a g e

7 28. NOTICES. All correspondence and notices to be given pursuant to this lease shall be addressed if to the Tenant at the Tenant s last known address, and if to the Owner, to the address appearing at the top of this lease. Notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope addressed as aforesaid, and deposited postage prepaid in a post office regularly maintained by the United States Postal Service. 29. SEVERABILITY. Each provision of this lease shall be considered to be severable, and the invalidity or violability of any such provision shall not affect the validity or enforceability of any other provision in this lease. 30. EXPENSES INCURRED WITHOUT CONSENT OF OWNER. No expense shall be incurred for or on account of the Owner without first obtaining Owner's written authorization. Tenant shall take no actions that might cause a mechanic's lien to be imposed upon the Real Estate. 31. ATTORNEY FEES AND COURT COSTS. If either party files suit to enforce any of the terms of this Lease, the prevailing party shall be entitled to recover court costs and reasonable attorneys' fees. 32. CONSTRUCTION. Words and phrases herein, including the acknowledgment, are construed as in the singular or plural and as the appropriate gender, according to the context. 33. CERTIFICATION. Tenant certifies that it is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, Specially Designated National and Blocked Person or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Asset Control; and is not engaged in this transaction, directly or indirectly on behalf of, and such person, group, entity or Nation. Tenant herby agrees to defend, indemnify and hold harmless Owner from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney s fees and costs) arising from or related to any breach of the foregoing certification. 34. ADDITIONAL PROVISIONS. The following special provisions are made a part of this lease: See attached. IN WITNESS WHEREOF, the undersigned hereby agree to the terms set forth herein and state that this lease is executed as of the day and year last indicated below: Tenant Date Jim Steer, Board Chairperson Date Des Moines County Conservation Board Chris Lee, Executive Director Date Des Moines County Conservation 7 P a g e

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