Vineyard Lease Agreement
Recidivism under the law “is the amount for which the operation can reasonably be expected to be leased by a willing lessor to a consenting tenant, taking into account all relevant factors in the open market” (i.e., area, appearance, type of soil, latitude, drainage, presence of buildings, etc., and terms of the agreement). But the parties have the freedom to agree on their own formula, and with very few market transactions that could be considered comparable to your own situation, it`s worth taking the time to stop and think. Duration A tenancy has a minimum duration of nine years with a right of automatic renewal granted to the tenant at the end of the lease. In practice, it can be relatively difficult for the landowner to end a tenancy and regain full use of the country. Circumstances in which a landowner may refuse to renew a lease include when a tenant has breached the terms of the lease, has reached retirement age (although it is possible for a tenant of retirement age to pass on his or her rights from marriage or child), or if the landowner wishes to cultivate the land himself. However, in the latter case, the landowner must meet strict conditions, for example. B the experience, equipment and financial resources required to manage the land itself. If they are not currently engaged in a similar agricultural activity, it is unlikely that they will be able to meet these conditions. It is therefore possible that a tenancy signed for a minimum period of nine years may last 18 years or more. One way to overcome this situation is to agree on a long-term lease, set at 25 years and which does not have an automatic renewal right.
Another alternative is the Provision Agreement (see below). We have a broken down pear garden in southern Oregon (Jacksonville). We are faced with the prospect of having to dismantle the orchard and we are looking for agricultural alternatives. We were contacted by a vineyard lessor interested in the docking of a vineyard. I am looking for information on the standard rental conditions in this AVA (rental per hectare, etc.). If you have input or other ideas (alternative crops or subsidies for crop conversion), this would be a good thing. Another increasingly popular method for leasing agricultural land is the “Making Available Agreement” (“CMD”). This system is managed by SAFER (Société d`Aménagement Foncier et d`Établissement Rural) and aims to offer landowners and tenants a safe and simple structure to conclude a short-term lease. The landowner undertakes to lease his land to LA SAFER for a fixed period of between one and six years. SAFER then leases the land to a tenant for the same period. The rent is calculated on exactly the same basis as for a rent, except that the tenant pays the rent to SAFER and not directly to the landowner, and SAFER then pays this sum to the landowner, minus a “commission” of 10%. The system is designed to be used in circumstances requiring greater freedom and flexibility than renting; For example, if a landowner wants to retire, look for a long-term tenant, or wait for a possible sale.
It also has the advantage of being subscribed by SAFER. Since the contract is not subject to the same rules as a tenancy (except for the calculation of rent), the parties also have the flexibility to add clauses relating to how the land is managed, for example. B to require the tenant to adopt environmentally friendly practices. . . .