A grazing lease agreement is a legally binding document between the lessor and the renter who is seeking to have temporary possession of the property. The agreement basically establishes the parties, the property, the conditions and payment of the rental. It also spells out sanctions for violations.
Read More: Breaking of a Commercial Lease in Texas
Land Usage and Rental Payments
A grazing lease agreement under Texas law clearly indicates the land would be used for the purpose of grazing and harvesting hay during the term of the lease. The number of animals allowed per acre in accordance with the Texas Agricultural Extension Service must be specified. The specific location of the land must be stated in the lease. Such a lease agreement must also indicate the amount of rent and a specific date when it is payable.
Tenure and Restrictions
A grazing lease agreement must show the day it comes into effect and when it expires. If this is renewable periodically, the lessor must inform the lessee in the agreement. If the lessee intends to sublease a portion of the land, he must seek written consent from the lessor. It should state that the lease represents the full terms and conditions of the agreement.
No oral representations, warranties, agreements or promises regarding the lease not included in the lease are valid. If hazardous materials are not allowed on the property, the contract must state that clearly and, if possible, tabulate exactly which substances are banned.
Insurance, Warranty, Utilities and Taxes
A grazing lease agreement in Texas must clearly state that occupation of the land is at the owner's risk. As the lessor, you can't assume any responsibility for what happens at the land while it is under a lease. During the term of the lease, you as a lessor, can't be liable to anyone for the actions of the lessee. The lease agreement must indemnify and release the lessor from any risk associated with the activities of the lessee.
For instance, you can't be sued for the omissions of the lessee, including attorney's fees or other expenses. The lessor shall pay all the required taxes during the term of the lease, including ad valorem taxes, special assessments and government charges.
Amendments to the Lease
The lease can only be amended in writing and signed by both the lessor and lessee. Inspection or repairs will be required at times. A Texas grazing lease agreement should indicate the lessor must be allowed to enter the property at any reasonable time. The lease can be terminated if the lessee is found in violation, but the lessee must be given 30 days' notice.
Once the lease is terminated, the lessee must remove the animals from the property when the 30-day notice expires. At the termination of the lease, the lessor should surrender the land in the state it was in at the beginning of occupancy. Any damage to the fence done during the term of the lease must be repaired by the lessee.
- Texas A&M Agrilife Extension in Nacogdoches County: Sample Pasture Lease Agreements
- Beef Magazine; Latest Grazing Rates Survey: Rates Inching Up; Mike Fritz; March 2006
- University of Missouri-Kansas City: Texas Grazing Lease
- Beef Magazine: Pasture Rates Continue Higher
- Legal Beagle: How to Find the Legal Description of a Texas Property
- Legal Beagle: Breaking of a Commercial Lease in Texas
- Legal Beagle: How to Find a Legal Property Description
- Legal Beagle: What Is the Purpose of an MSDS?
Gilbert Manda has written financial news since 2000. He holds a professional diploma from the London School of Journalism, a Bachelor of Science in global business and public policy from the University of Maryland and a Master of Arts in international journalism from City University London.