Synopsis: Whether a farm lease meets the technical definition of a “cash” lease or a “share” lease under federal regulations determines whether the farm operator, alone, or both the operator and the landlord is to receive certain USDA farm program payments. “Flexible” or “adjustable” cash rental arrangements, which technically may be “share” leases under the regulations, can be especially problematic. Improper division of farm program payments can result in ineligibility for farm program payments, and in some circumstances, a need to pay back previous payments. If a landlord and tenant have this problem, it may be wise for one to consult with legal counsel before taking further steps. To view the entire article on the web go to:
http://www.farmdoc.uiuc.edu/legal/articles/ALTBs/ALTB_06-01/ALTB_06-01.pdf