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Lease Agreements

Product Overview

A ground lease for an agricultural products processing facility is a contractual agreement between a landowner and a tenant, where the tenant leases a piece of land from the landowner for the purpose of constructing and operating an agricultural products processing facility. The lease agreement typically covers a long-term period, ranging from 10 to 50 years, and outlines the terms and conditions of the arrangement between the parties.

In this type of lease, the tenant is responsible for financing, designing, constructing, and operating the processing facility on the leased land. The tenant is also responsible for maintaining the facility and making any necessary repairs or upgrades. In exchange for the use of the land, the tenant pays rent to the landowner, which is usually a fixed amount or a percentage of the revenue generated from the processing facility.

The lease agreement may also include provisions for renewing the lease, assigning the lease, or terminating the lease. It may also outline the responsibilities of each party in case of default or breach of the lease agreement.

Overall, a ground lease for an agricultural products processing facility provides a way for a tenant to access the land needed to operate a processing facility, while allowing the landowner to retain ownership of the land and benefit from the rent paid by the tenant.

This agricultural lease is designed for an agricultural lease of property with the tenant constructing all necessary improvements for its business operations.

The rent is adjusted by the CPI, and the tenant is responsible for all utilities for the premises, including charges for irrigation.

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(approximately 11 single spaced pages)


Quick Look




THIS LEASE (the “Lease”), is made and entered into this _____ day of ________, 20__, by and between COMMERCIAL PROPERTY LANDLORD, INC., hereinafter referred to as "Landlord," and AGREEABLE TENANT, INC., hereinafter referred to as "Tenant".

Landlord is the owner of the land described on the attached Exhibit "A" (cross-hatched portion) consisting of approximately ___ acres, together with any appurtenances, and is referred to in this lease as "the Premises." Tenant wishes to construct a building on the Premises for use as an agricultural products processing and storage facility.

The parties therefore agree as follows:


Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Premises on the terms and conditions set forth below.


TERM. The term of this lease shall begin on ___________ . The term shall continue for 25 years from that date to midnight on ______________. Tenant shall be entitled to renew this Lease for an additional term of ___ years at the rent in effect at the end of the original term. All terms of this lease shall remain in effect in the renewal term, including the escalation in rent set forth below.


3.1 BASIC RENT. Basic rent shall be the sum of $___________ per year. Tenant shall pay basic rent annually in advance on the anniversary of the commencement of this lease each year. It is understood that rent for the first year is paid upon execution of this agreement.

3.2 GENERAL RENT PROVISIONS. All rents shall be payable without deduction or offset to the order of Landlord at the address shown in paragraph 14.2 or at such other address as may be designated from time to time by Landlord. It is the intention of the parties that all rents payable under this lease shall be net to Landlord and that all costs, expenses and obligations during the lease term relating to the premises shall be paid by Tenant.

3.3 ESCALATION. On ______________ , and on the _______________ of each succeeding year, there shall be computed any increase in the cost of living based on the "Consumer Price Index -All cities and U.S. Average" (1982-84=100) hereinafter called the "Index", published by the Bureau of Labor statistics of the U. S. Department of Labor. The Index number entitled "All Items" for the month of __________, shall be the base Index number for purposes of computation. The monthly basic rent set forth in Sub-paragraph (a) hereof shall, in the event of an increase in the cost of living determined as above-mentioned, be increased effective _____________ of each succeeding calendar year during the term of this Lease Agreement wherein there is an increase in said cost of living. The current Index number shall be divided by the base Index number and the result multiplied by the basic monthly rental mentioned above shall be the adjusted monthly rental. Landlord shall, within a reasonable time after determining the appropriate information, with respect to said increase, give Tenant notice of such increase, and Landlord's computation thereof shall be binding and conclusive unless Tenant shall, within fifteen (15) days after the giving of said notice, advise Landlord of any dispute in conjunction therewith. Any dispute between the parties as to such computation shall be determined by a Board of Arbitration with one member selected by Landlord and one member selected by Tenant and one member selected by the selectees of Landlord and Tenant. If publication of the Consumer Price Index shall be discontinued, the parties shall thereafter accept comparable statistics on the cost of living for the city of Portland as they shall be computed and published by any government agency or by a responsible financial periodical of recognized authority. In the event that any method is not utilizable and does not have an appropriate Index for the given month that is herein involved, computation shall be undertaken in the form of interpolation between given dates that are applicable so that the spirit and intent of this paragraph can be given effect.

SECTION 4. USE OF PREMISES. Tenant shall use and permit the use of the premises only for the construction, maintenance, and operation of an agricultural products processing and storage facility.


5.1 PAYMENT BY TENANT. Tenant shall pay before delinquency all real and personal property taxes, general and special assessments, and other charges of every description levied on or assessed against the Premises, improvements located on the Premises or personal property or fixtures located on the Premises or in the improvements during the lease term. Tenant shall make all such payments directly to the taxing authority. If any such tax, assessment or charge may be paid in installments, Tenant may elect to do so as long as each installment together with interest is paid before it becomes delinquent.

5.2 PRORATIONS. Taxes, assessments and charges for the tax years in which the lease term commences and expires shall be prorated between the parties on a daily basis as of the date of commencement or expiration. If any tax, assessment or charge is payable in installments and an election to so pay has been made with respect to the Premises, Tenant shall pay all installments which fall due during the lease term regardless of whether some installments fall due before or after the lease term.

5.3 RIGHT TO CONTEST. Tenant may contest in good faith the validity or amount of any tax, assessment or charge in accordance with the procedures established by statute or administrative rule for such contest so long as the Premises are not subjected to a lien as a result of the contest. Tenant may prosecute such contest in the name of Landlord as Landlord's attorney in fact. All tax contests shall be at the sole expense of Tenant. Any return or rebate from any taxing authority on account of any tax or assessment which was originally paid by Tenant shall be the sole property of the Tenant.

5.4 PROOF OF COMPLIANCE. Tenant shall annually on ________ of each year furnish to Landlord receipts or other proof of payment of all taxes and assessments payable by Tenant during the twelve months immediately preceding such date.

5.5 UTILITIES. Tenant shall pay when due all charges for electricity, natural gas, water, sewage, telephone, refuse collection and all other services or utilities used on or in connection with the Premises. In addition, Tenant shall pay the charges of __________: Irrigation District for water supplied the premises and Landlord's adjoining property.


End of Excerpt


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LA125 Lease Exhibit Sample Pack Bonus   

If you purchase this product, you are entitled to receive via email at no charge LA125 Lease Exhibit Sample Pack (113 single spaced pages). To receive LA125, you must email us after you purchase the LA described on this page to request it, and LA125 will be emailed to you promptly.  Do not include LA125 in your shopping cart order. For more information and a complete list of exhibits included in LA125, click here.