How to Incorporate Sustainable Farming into Your Lease Agreement

Farmland can be a valuable asset. However, that value is directly related to the health and well being of your land. 

Even small changes in soil health produce significant results. Increasing the organic matter in soil from 0.05% to 1% resulted in a 20% yield increase in a 2019 study. Another study found that soil health practices were able to increase yields by $76 per acre.

Sustainability, then, isn’t just about environmental protection, although that’s certainly a piece of the puzzle. It also impacts the productivity and value of your land. As such, it’s important for everyone involved in maintaining the land—especially your tenant farmers—to maintain and care for that asset. 

For many farmers, sustainability isn’t part of their regular practices. That’s why you need to make sure to put it into your lease agreement. Here are some tips and practices to make that happen. 

But knowing where to start and what to put into your rental agreement to incorporate these practices isn’t always easy.

Why sustainable farming matters

Sustainable farming is nothing new—farmers have been practicing it for centuries. But concerns for the environment, combined with farmers’ desire to maximize the value of their land, has resulted in greater interest in recent years. 

Here are some ways that sustainable farming can benefit your operation. 

Sustainability = longevity

Protecting the environment and enhancing natural resources starts with sustainable farming practices. The goal is to combat the needs of the present without compromising the ability of future generations to meet their upcoming needs as well.

USDA reports that the US lost more than 1 million acres of farmland in 2021. While some of this is caused by farmers selling off their assets, farmland depletion is another factor at play. As a landowner, it’s critical that you take steps to protect your valuable asset for the future. 

Environmental protection

Because of their intimate connection with the land, farmers already have a vested interest in environmental protection. According to the Council for Agricultural Science and Technology (CAST), sustainable farming results in: 

• 85% less greenhouse gas emissions from farming

• 70% less herbicide run-off

• 90% less soil erosion

As concerns about the climate continue, farmers can make a significant impact not only to the benefit of the planet, but their local communities. 

Cost reduction

Sustainable farming isn’t just great for the planet. It’s good for your farmers’ bottom line. By using less water and fewer chemicals, it can actually reduce input costs, making it possible to do more with less.

For example, sustainable farmers reduce the amount of equipment used to move soil. Plus, when soil is properly preserved, it requires fewer additives eliminating more costs when compared to conventional methods. This retains nutrients and improves the soil.

How to incorporate sustainable farming into your lease agreement

The short-term nature of most farmland leases means that farmers are incentivized to maximize short-term production, often at the expense of long-term health. As such, it’s important to explicitly lay out sustainable farming practices in the lease agreement. 

At the end of the day, a trusted partner in a landowner-to-tenant relationship starts with an understanding of the requirements to tend your land. Communicating your goals is crucial to maintain the sustainability of your land for the future.

Here are some specific practices and benchmarks you should put into the agreement itself. 

Soil health

The stewardship of your farmers’ practices affects the health of your soil every day. By prioritizing soil health, you can not only protect your land, but in many cases improve crop yields. 

The good news is that regular soil testing (every 1-3 years) is standard practice for most lease agreements. This will give you hard data and direct insight into the health of their land.

You should also build in predetermined solutions into the agreement, should signs of soil depletion arise. There are several ways to enrich depleted soil including the use of chemical fertilizers, planting double crops, introducing additional organic matter etc. Outline what you’re looking for and how to meet those benchmarks.

Cover crops

Protecting and enriching the soil through cover crops methods are important to improve the environmental health of your land. 

Cover crops allow for farmland to retain organic matter and build a stronger structure for future crops. Better yet, cover crops enhance your land sustainability by:

• Reducing weeds, soil disease, and pests

• Protect soil from over-saturation through rain and runoff

• Improve soil health and aggregate soil stability

• Add organic matter and balance nutrients

• Enhance nitrogen levels to create better overall soil

Cover crops are one main component of a soil-enriched health system and will work to prevent soil loss, improve nutrients, and aid in water management.

Incorporate this into your lease agreement with a Cover Crop Lease Insertion, which will ensure this requirement is covered. 

Planting methods

Not all planting methods are created equal. There are some that will help increase the sustainability of your land, and you should include these in your written agreement.

Crop rotation: This will increase fertility, reduce erosion, and protect the soil. 

Subsurface drainage: This will maintain a reasonable level of soil saturation, allowing the soil to absorb heavy rainfall but subsurface piping eliminates all soil erosion.

Drip irrigation: Over-saturation is harmful to both crops and soil. Drip irrigation minimizes soil erosion and nutrient run-off. 

Double cropping: Planting more than one crop prevents soil erosion from wind and water exposure. Diversifying the root structure under the soil is one of the many reasons this method improves the health of farmland.

Final thoughts on environmental stewardship

Every healthy and profitable future starts with a conversation. But it should never end there. 

Your partnership with your farmer must be backed by a written agreement that clarifies and states the requirements and needs of your soil to build a profitable and trusted partnership that creates sustainable farming for your land.

For further support in identifying new farmer tenants, drafting lease agreements, and building long-term partnerships, check out the CommonGround marketplace.