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Model Farm Lease Agreement and Farm Use Assessment Information

A model farm lease agreement provides land owners with information to assist them in dealing with their environmental responsibility on land which they lease. It is not designed for the leasing of a building or structure; thus a separate agreement would be necessary. There may be circumstances which require changes to the leases. It is recommended that the Lessor and Lessee consult their respective lawyers prior to signing a lease document.

Provide below are two examples of model farm lease agreements; one that is specific to potato production and the other is a more generic lease.

Lease Agreement Example #1 - This model lease was prepared by the PEI Potato Producers Association and the PEI Department of Agriculture and Forestry. It was specifically designed for use when leasing land for the purpose of potato production.

Lease Agreement Example #2 - This generic model lease was prepared for the benefit of the general farming public by the PEI Soil and Crop Improvement Association; and the Government of PEI Departments of Agriculture and Forestry, and Fisheries and Environment.

Farm Use Assessment - A property owner may be eligible for the farm use assessment tax rate if the land is leased or rented to a bona fide farmer who operates it as a farm operation. The lease or rental agreement for the land must be for a minimum of three years and the total amount of land leased from the person is a minimum of ten acres of clear arable land, but excludes land approved for sub-divisions as residential, recreational, commercial, industrial or institutional use.