Saskatchewan Crop Share Agreement

As a general rule, a lease is taxable, unless it is expressly exempted under Part I of Schedule V of the Excise Act, which could apply in limited situations, such as real estate, which is intended for long-term stay. The rent paid as a portion of the crop is not subject to the HST. The treatment of cash rents for HST purposes may also depend on the landlord`s total income. A business (including a renter who leases real estate) does not need to register to collect and transfer HST if its gross tax and zero rating sales are less than $30,000. Landlords whose only source of business income is rent with rental incomes of less than $30,000, do not need to register when they can choose to do so. Much depends on the lessor`s participation in the payment of taxes on the proceeds of this type of lease. Title search – Tenants can also search for the title of the land for rent to ensure that they enter into a contract with the person who owns the land. A title search can be conducted through the Ontario Land Registry. Insurance – Landowners may consider applying for proof of crop insurance, especially if the rent has not been paid in advance. Tenants and landlords should also talk about insurance against possible environmental damage. If the tenant plans to store harvested crops on the landowner`s property, there should also be insurance guarantees for protection against theft or damage.

Instead of working as part of a barleasing, a landowner could manage the land by renting custom operators or lease the land on the basis of cultivated land where intermediate consumption is shared. Currently, net income from these sources is eligible for both the KkPp and the RRSP. The lessor could also be considered a farmer if the lease is structured as a detailed crop plan in which the landowner retains control over land use, crops, fertilizer rates and pesticide use. The tenant receives all income from crop sales, but pays the lessor a fixed dollar per hectare each year. « There are two ways in which the lessor does not bring a fee to enter the agreement, so that it receives a percentage of the sale of the crop. We usually see it as 25/75 split or sometimes as 20/80 split « , said Peutert.  » The second type is when the owner takes more risks and puts some money into the entrances. In these agreements, you see a share of one-third/two-thirds. The high cost of the land makes leasing an attractive alternative to property. The rental of arable land has advantages and disadvantages before entering into a lease agreement. Section 4 examines the pros and cons of a crop share lease agreement.

The purpose of this fact sheet is to help tenants and landlords enter into fair leases with a share of culture and help them make informed decisions. The terms rental and leasing are used interchangeably. These points clarify the tenancy agreement and provide talking points for landlords and tenants in the formulation of the tenancy agreement: Settlement of Differences – An arbitration or conciliation clause in the written agreement describes how to deal with disagreements that tenants and landlords cannot resolve. The most common practice is to appoint a mutually agreed third party, acting as a mediator or arbitrator. The most important thing you can do as a tenant or landlord is to submit your contract in writing. This action alone would eliminate the vast majority of disagreements that occur. Although handshake has long been a method of doing business in the rural commune and an oral rental contract is a valid contract, it has serious drawbacks. However, many farmers and landowners are reluctant to use a written lease for several reasons: tenants generally need to apply for