Illinois Farmers Can Now Add Conservation Terms to Leases With Free Templates

With October 31 marking the final notice date for many Illinois farm leases, conversations between farmers and landowners about next year’s rental terms are already underway. A set of free lease addenda funded by the corn checkoff can help both sides bring conservation into those discussions.

Megan Dwyer, then director of conservation and nutrient stewardship with the IL Corn, spoke with Jared White on Managing for Profit, a content partnership between the IL Corn Marketing Board and Brownfield, about how the addenda came together. IL Corn worked with the University of Illinois to develop them after recognizing a gap: a large share of Illinois acres are rented, and traditional cash rent or crop share leases offer little structure when a landlord or tenant wants to try something different.

What the addenda cover

The addenda cover habitat, nutrient management, conservation and soil health. Dwyer says they aren’t one-size-fits-all. Instead, they give farmers and landowners a framework for working through the terms that fit their operation, whether that’s planting cover crops to scavenge nitrogen and sequester carbon or adjusting nutrient systems.

Why conservation is coming up in lease talks

Interest in these practices is growing from several directions. Beyond general stewardship of rented ground, food companies want to claim environmental benefits from the crops entering their supply chains. Dwyer also points to the 45Z biofuel tax credit, which she expects will draw more farmers within an ethanol plant’s draw area into that market. For rented acres, the addenda help put the right agreement in place.

Because soil health benefits take time to show up, the addenda also help ensure a tenant’s investment in cover crops, planter changes or nutrient adjustments is recognized and covered in the lease.

Where to find the addenda

Dwyer encourages farmers and landowners to start these conversations early, before fall fertilizer goes on. The addenda are available in the ag law section of the University of Illinois farmdoc website and can be added to existing agreements.