Why You Need to Include Soil Testing in Your Farmland Lease Agreement
Mar 12, 2023
Sustainability isn’t just about protecting the environment. It’s about protecting the quality of your asset: your land.
If you’re leasing your land to a farmer, you may end up with misaligned incentives. The farmer’s main goal is to increase productivity at all costs. They’re not always concerned about the state of the land when they’re finished.
That’s why it’s critical to conduct regular soil testing and, more importantly, put it into your farmland lease agreement.
Why does soil testing matter to landowners?
Your ability to make money from your prized asset—your farmland—is entirely dependent on land quality. While a number of factors go into determining land quality, soil quality plays a major role.
Specifically, high-quality soil has enough nutrients to supply plant needs. These include nitrogen, phosphorus, and sulfur, all critical ingredients to promote photosynthesis, enzymes, protein synthesis, and more.
While you could look at a crop rotation to get an idea of your relative soil health, it’s important to get “down in the dirt”, as it were, and identify exactly the composition of your soil. That way, you can track the quality of your land and see whether your farmer is damaging or replenishing it.
Regular soil testing—usually every two to three years—helps you:
Understand the precise condition of your soil and its impact on crop productivity, profitability, and sustainability
Gain insights into fertilizer levels to avoid excess chemical use
Get early warning into soil depletion so you can take steps to fortify it
Keep on top of environmental concerns to maintain community health
If you aren’t regularly and actively involved in the operation on your farmland, soil testing is key to keeping track of the quality of your asset.
Why soil testing needs to be part of your lease agreement
As the saying goes, “trust, but verify.” So even if you have a great relationship with your farmer tenant, it’s important to make expectations clear and get them in writing—including soil testing.
By putting transparent soil testing requirements into your lease agreement, you can ensure that all parties agree to them before the season is underway. What’s more, putting the requirement in writing incentivizes the farmer to think about the health of the land during the operation.
A handshake agreement won’t protect your land if something goes wrong. Get your requirements in writing to avoid any awkward circumstances down the line.
5 soil testing best practices for your farmland lease agreement
Effective soil testing requirements should be specific, measurable, and easy for everyone to understand. Here are five best practices to start implementing today.
1. Testing schedule
The first and foremost thing to put into the lease agreement is a testing schedule. Generally, it's best practice to test every two to three years, which means that you’ll likely test once during the life of the lease.
You should also indicate when the testing is going to take place in the context of the season (before or after harvest). Also, make sure you schedule your soil testing in enough advance of your lease renewal date. That way, if you need to find a new farmer, you have enough time to do so.
2. Organic matter levels
Although farmland soil testing is pretty much a standardized practice, it doesn’t hurt to put in specifics as to what you’re measuring. Specifically, organic matter like nitrogen, phosphorus, calcium, manganese, carbon, and sulfur are key to track—and you may have additional levels relevant to your operation.
Understanding organic matter levels can help you uncover the strengths and weaknesses of your soil. That way, if and when you need to make a change, you have the information to make an effective decision.
3. Clear benchmarks
Ultimately, you’re putting soil testing requirements into your lease agreement to help evaluate both your asset and the quality of the farmer. If long-term farmland health is important to you, then it’s critical that you have clear benchmarks in writing. Only then can you use the data to make decisions for your farm.
This involves having a clear understanding of your farm’s needs and what you should expect to see each season. This will vary from farm to farm.
4. Flexibility in addressing issues
Identifying a problem is important. But just as important is fixing it—ideally without replacing your farmer.
Although it’s a good idea to have something in the lease agreement about best practices, particularly if that’s important to you, you should leave some flexibility in how to address soil problems as they arise.
There are a number of great ways to replenish soil nutrients:
Plant a replenishing crop—either as a season crop, double crop, or cover crop
Amend the soil with fertilizers
Use organic matter like manure or compost
The best approach for amending your soil will vary based on your specific plot of land, acreage, resources, and the farmer’s expertise. So while you’ll want to include a redress clause in your contract, leave the specific solution open-ended.
5. Collaboration and partnership
At the end of the day, if you have a great relationship with a farmer and they do a good job, you don’t want to let go of them. So if there’s an issue with soil health, address the issue as a partner first. Only if the farmer is hesitant to fix the issue should you consider an alternative.
Ideally, however, a good farmer understands the importance of sustainable farming practices and should be open to feedback. Keeping communication lines open is key to maintaining the health of both the land and the relationship.
Final thoughts on soil testing in farmland lease agreements
Soil testing is an important part of any farmland lease agreement. By putting those requirements into the contract, you can gain significant transparency into the health and sustainability of your land.
However, if you run up against friction with your farmer, you may need to find a replacement. When that happens, visit CommonGround to find a better fit.