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Section 5 Types Of Leases

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There are several types of cropland leases, including cash rental, flexible cash rental and crop share rental leases. What makes each of these leases different is how the payment for the land is calculated. Cash rental is fixed. Flexible cash rental and crop share rental are based on a division of revenue from the crop in a pre-determined fashion. In addition to cropland leases, there are building and pasture leases.

Cropland Lease Comparison

Cash Rental Lease

  • Tenant receives the income from all crop sales but pays the landlord a fixed dollar amount each year as the rent.
  • A portion of the rent may be paid in advance and the rest at harvest.
  • The tenant bears all the production risk.

Crop Share Lease

  • Crop sales are divided between the landlord and the tenant.
  • Income is divided as the crop is sold.

Flexible Cash Rent Lease

  • Tenant receives all the income from crop sales, but the dollar amount paid to the landlord each year varies with either the price of grain or yield of grain, or both price and yield.
  • This type of lease incorporates features of both the Crop Share and Cash Rent leases.

The risks associated with the various leases can be grouped into two categories, namely production and marketing risk. Table 1 outlines these risks and shows which risks are shared by the landlord under the three types of lease arrangements discussed.

Table 1. Comparison of Landlord’s Risk Under Three Types of Lease

Type of Risk to Landlord’s Income Type of Rental Lease
Yes
Method

Notes & Data Providers

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Section 2 Tax Implications Of Land Leases

The following is for general illustrative and information purposes only and is not comprehensive, nor is it intended to be legal advice. It does not replace professional advice from a tax specialist. Remember, tax laws and qualifications for programs may be time limited or may change. It is strongly recommended that you consult with a tax specialist for up-to-date advice that is specific to your agreement.

The tax implications of entering into a lease agreement should be carefully considered.

Landlords can inadvertently disqualify themselves from being able to use two major tax provisions. The Canada Revenue Agency does not consider many types of leasing to be farming. For example, a share crop lease, where a portion of the crop is given to the landowner as payment for the land, may not meet the CRA’s definition of farming. As a result, some leasing arrangements can disqualify landowners from using the following tax provisions:

  • the ability to use a tax-deferred rollover on the transfer of land to children
  • the $1,000,000 capital gains exemption on their land

Tax Deferred Rollover to Children

The $1,000,000 Capital Gains Exemption

Selling Farmland

Qualified farm property includes:

  • an interest in a family farm partnership

Qualified farm property must meet the following definitions:

In either of the above cases, property must be used in farming by:

Leasing Farmland

Leasing farmland is most likely to affect the use of the exemption on land purchased before June 18, 1987.

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Fidelity Government Cash Reserves

Friday, October 21, 2022Fri, Oct 21, 2022 2.65
Thursday, October 20, 2022Thu, Oct 20, 2022 2.64
Wednesday, October 19, 2022Wed, Oct 19, 2022 2.64
Tuesday, October 18, 2022Tue, Oct 18, 2022 2.63
Monday, October 17, 2022Mon, Oct 17, 2022 2.63
Friday, October 14, 2022Fri, Oct 14, 2022 2.62
Thursday, October 13, 2022Thu, Oct 13, 2022 2.61
Wednesday, October 12, 2022Wed, Oct 12, 2022 2.61
Tuesday, October 11, 2022Tue, Oct 11, 2022 2.61
Monday, October 10, 2022Mon, Oct 10, 2022 2.61
Friday, October 07, 2022Fri, Oct 07, 2022 2.59
Thursday, October 06, 2022Thu, Oct 06, 2022 2.58
Wednesday, October 05, 2022Wed, Oct 05, 2022 2.57
Tuesday, October 04, 2022Tue, Oct 04, 2022 2.56
Monday, October 03, 2022Mon, Oct 03, 2022 2.54
Friday, September 30, 2022Fri, Sep 30, 2022 2.52
Thursday, September 29, 2022Thu, Sep 29, 2022 2.51
Wednesday, September 28, 2022Wed, Sep 28, 2022 2.51
Tuesday, September 27, 2022Tue, Sep 27, 2022 2.43
Monday, September 26, 2022Mon, Sep 26, 2022 2.36
Friday, September 23, 2022Fri, Sep 23, 2022 2.13

Section 3 Elements Of A Lease Agreement

If You

The Components of a Lease Agreement

A written lease can be as simple or detailed as the landlord and the tenant wish. The following summary presents the items that a lease can contain, categorized under three headings.

Items in Written Lease Agreements

Required Items

  • names and addresses of tenant and landlord
  • description of property to be rented
  • term and renewal of the lease
  • rent payable, payment and use of utilities

Recommended Items

  • right of inspection and removal of crops
  • transfer of property
  • rights to assign or sublet the lease
  • resolution of differences
  • production practices and management decisions
  • income support payments, subsidies and reimbursements
  • repairs to buildings, fences and improvements
  • duty to notify Agricorp

All leases must contain this information:

Names and addresses of the tenant and landlord – Including spouses if required.

Description of property to be rented – Includes the legal description and specifies buildings or areas to be excluded.

Term of the lease – Indicates when it starts and how long it lasts. Although not a basic requirement of a lease, this section should also address the renewal of the lease if the parties wish to maintain the lease agreement for a period of years, including when and how such a renewal will take place.

Rent payable – The amount of rent, how it is calculated and when it is to be paid. In the case of a building lease or where the renter has access to facilities, the payment and use of utilities should also be stipulated.

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Section 4 Termination And Other Legal Issues

Termination of the Farm Lease

A farm lease can be terminated in a number of different situations, including:

  • Termination at the end of the specified term in the lease. If a tenant remains in possession of the property after the termination date without the consent of the landlord, then the landlord can obtain a court order to have the tenant removed.
  • The surrender of the lease by the tenant. That is, the voluntary “giving up” of the lease with the consent of the landlord.
  • The merger of the lease. The tenant purchases the leased property from the landlord.
  • The foreclosure of the lease, in the event the landlord defaults on any mortgage on the lands, and the mortgagee begins foreclosure proceedings. This would normally only apply if the lease was entered into after the registration of the mortgage in the land registry office.
  • The giving of notice by the landlord to the tenant of the intention to terminate the lease. If the lease does not expressly state a termination date, then the landlord is required to give notice in accordance with the Commercial Tenancies Act . Weekly tenants must receive 1 week’s notice monthly tenants receive 1 month’s notice . The legislation appears to be silent on the amount of notice required for a yearly lease, so it is critical the parties set out the appropriate length of notice in the written lease.

Tenant’s “Relief from Forfeiture”

The tenant has certain rights in the event of termination of the lease by the actions of the landlord.

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Etf Alternatives To This Mutual Fund

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How ETFdb.com has selected ETF alternatives to FDRXX:FDRXX is a money market fund. The following table displays information on all ETFs currently allocated to the Money Market ETFdb.com Category. Click on any of the ETFs listed below for more information, including underlying holdings, fact sheet access, and charting capabilities.

How To Apply

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You can apply for available employment opportunities through our online application system. To get started:

  • Visit our job site to search for current openings. Current employees must visit the site and apply through the Richmond Hill Employees link.
  • Start the job application process by making a profile.
  • After you successfully complete the application, you will receive an email acknowledging receipt of your application.
  • Each time you visit, use the login option to update your information and to apply. You only need to make a profile once.
  • We’ll only contact you if you’re selected for an interview. Applications are protected through the Municipal Freedom of Information and Protection of Privacy Act and following the Municipal Act, personal information gathered through your resume submission is used for employment purposes only. We keep your resume for six months from the date you submit it.

    The Manager, Employee and Labour Relations, Compensation and Recruitment will answer any questions you have about the collection of this information.

    Don’t have Internet access? You can use the computer in Access Richmond Hill on the Ground Floor of the Municipal Offices .

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