Pasture Lease Agreement

Foreword

This publication outlines some of the

important considerations of leasing

privately owned land. It should not be

considered as either an interpretation or

complete coverage of all the laws

affecting land rental arrangements, nor

the implications of the Income Tax Act.

The Government of Saskatchewan

assumes no responsibility towards

persons using it as such.

All land rental arrangements should be

discussed with an Extension Agrologist

or Farm Management Agrologist,

accountant, tax consultant and your

lawyer before they are signed. Revenue

Canada will also provide information on

tax implications.

This publication provides management

information and guidelines for the landlord

and tenant when negotiating a rental

agreement. The landlord and tenant should

study the material carefully and prepare a

written agreement that suits their individual

situation. The draft lease agreement in this

publication is for use only as a guide. A

lawyer should review any lease agreement

before it is finalized.

Warning: Landowners who rent land to

anyone other than a spouse or child may not

qualify for the capital gain rollover, under the

Income Tax Act, when the land is transferred

to a child at a future date. Consult a lawyer,

accountant or Farm Management Agrologist

for specific information.

For more information on this publication contact your Extension Agrologist or Farm Management

Agrologist at your nearest Rural Service Centre

Joe Novak, Provincial Specialist

Economics and Farm Management Section

Sustainable Production Branch

Saskatchewan Agriculture and Food

Phone: 306-787-6613

Email: [email protected]

April 1999

This publication and other Saskatchewan

Agriculture and Food publications can be obtained

from Saskatchewan Agriculture and Food’s

Publication Distribution Centre at 1-888-613-3975,

fax 306-721-4626, Email [email protected],

your local Rural Service Centre or our website at

http://www.agr.gov.sk.ca

Table of Contents

Page Number

Introduction ……………………………………………………………………………. 1

Carrying Capacity …….….……………………………………………………………. 1

Calculating Rental Rates ………………………………………………………………. 2

Completing a Lease Agreement ………………………………………………………... 4

Other Issues ……………………………….……………………………………………. 5

Sample Pasture Lease Agreement ………………………………………………………. 6

Sample Forms

Consent of Non-Owning Spouse ………………………………………………… 12

Certificate of Acknowledgement ………………………………………………… 12

Affidavit of Landlord …………………………………………………………….. 13

Affidavit of Execution …………………………………………………………… 14

Consent to Make Major Improvements ………………………………………….. 15

Lease Renewal …………………………………………………………………… 16

Caveat ……………………………………………………………………………. 17

Withdrawal and Discharge of Caveat ……………………………………………. 18

Appendix I: Contributions Worksheet ……………………………………………….. 19

Appendix II: Stocking Rate Guide for Native Pasture ………...…………………….... 21

Appendix III: Stocking Rate Guide for Seeded Pasture ……………….…………….... 22

Introduction

Leasing private pasture land is a common

arrangement in Saskatchewan. A lease agreement is

a legal document that sets out the terms of an

agreement between a landlord and tenant. There are

many items and conditions that need to be included

as terms of an agreement. The landlord and tenant

must carefully examine the terms and conditions to

ensure that they are acceptable to both parties. This

publication provides sample clauses for a pasture

lease agreement. Also included are samples of

various forms which may be needed as part of a lease

agreement.

In most pasture lease arrangements, the landlord

supplies the pasture land and the tenant supplies the

livestock. The most common agreement is cash

rental, where the tenant pays the landlord a fixed

sum each year, and the tenant in turn receives all the

income produced from the pasture (income from

weight gain or offspring). The major contributions

to this arrangement are the land and the cattle, but

there are usually other costs such as fencing and

taxes, and there may be other revenues such as

government payments. A proper lease will

determine in advance how all costs and income are

to be treated.

Carrying Capacity

This publication is not intended to provide

recommendations on rating carrying capacity or

stocking rates. The tables in Appendix I, II and III

are to be used as a guideline only. For more in-depth

information on correct stocking rates and pasture

carrying capacity, please refer to Saskatchewan

Agriculture and Food publications dedicated to

range assessment or contact your local Extention

Agrologist or Rangeland Agrologist.

The standard of measurement for carrying capacity is

the animal unit month. An animal unit month

(AUM) is the amount of feed consumed by one

animal unit in one month. One animal is considered

to be one mature cow which consumes about 27

pounds of forage per day. One animal unit is equal

to one of the following:

• 1 mature cow (1000 lb.) with or without

unweaned calf at side

• 2 weaned calves

• 1.25 yearling heifers or steers

• 0.75 bulls over 2 years old

• 0.7 horses (1000 lb.)

• 0.45 horses (1500 lb.)

• 8 weaned lambs, kids under 1 year old

• 5 ewes or does

• 4 rams or bucks

• 4 white-tail deer (160 lb.)

• 5 antelope (120 lb.)

Source: Managing Saskatchewan Rangeland, 1995

(Appendix 1)

Two terms used with pasture leases are carrying

capacity and stocking rate. Carrying capacity is the

average number of grazing animals that can graze

the forage year after year without damaging the

vegetation or soil. Stocking rate is the actual

number of animals or animal units on a specific

range area or field for a specific period of time,

usually a grazing season. Carrying capacity does

not fluctuate yearly while stocking rate does

fluctuate yearly in response to the amount of forage

production based on climatic conditions.

Pasture productivity varies greatly depending upon

range condition, type of vegetation, soil type and

climatic conditions. Other important issues which

directly relate to carrying capacity is herd

distribution and what can be done to improve the

distribution, water (both quality and distribution),

fencing, salt and minerals. The landlord and tenant

can also look at the option of fertilizing forages to

increase productivity or improve herd distribution.

The landlord and tenant also need to determine

how they will deal with drought, if it arises.

Most pastures are rented for the entire season, but in

some cases, short-season pasture may be available.

For these arrangements the use of rents based on

animal unit months are recommended.

Calculating Rental Rates

There are several methods which landlords and

tenants can use to determine pasture rental rates.

First, tenants and landlords need to determine the

property’s carrying capacity. Complete Appendix II

to determine the costs of both parties. Then rents

can be based on one of the following;

1. per acre of pasture,

2. per head of livestock,

3. per AUM (per head per month of grazing),

4. income sharing based on predetermined shares,

5. market approach.

1. Per Acre

This type of lease is based on landlord costs. It takes

into consideration the landlord’s investment and

costs. Landlords want to ensure that the pasture is

not over-grazed while a tenant wants to get the

maximum use from the available grass. These trade-

offs are complicated by the fact that pasture

capacities and the length of season vary greatly from

year to year. It is suggested that leases of this type

stipulate the maximum number of head of livestock

and the dates when the stock are to be added or

removed from the pasture. A longer term lease

provides greater incentive for the tenant to practice

responsible range management

The downside with this type of lease is that if

drought affects production, the rent remains the

same and forces the tenant to make a tough decision.

2. Per Head

This type of lease has the advantage of

compensating the pasture owner, based on the

number of livestock brought to the pasture. The

lease should stipulate the dates under which the

livestock should be added or removed from the

pasture. As a benefit over the per acre based

rental, if drought reduces forage production, the

rent can be adjusted because fewer animals grazed

the land. This type of lease can be made to be

more flexible from year to year. As such, it can

provide a direct incentive to manage the resource

properly.

3. Per AUM (per Head per Month)

This lease bases rents on the amount of grazing

which is available annually, and because of this is

very similar to a per head calculation. The

advantage is that the AUM is a common measuring

tool in stocking rates and easily converts between

bulls, or 1500 lb cows or 1000 lb cows with calves.

A per head calculation is not as flexible in that way.

The number of AUMs is stipulated in the lease and

the date of stocking and removal can be set by the

Example 1.1 - Per Acre

(Land cost + fence cost + water cost) x interest rate

divided by acres = owner's cost = rent

(See Appendix I on how to calculate landlord’s cost)

$1,731.00/160ac = $10.82/acre

Example 2.1 - Per Head

landlord’s cost divided by carrying capacity = rent

per head

$10.82 x 160ac = $69.25/head

25 head/quarter

landlord each year. This can have the advantage to

the owner of protecting the pasture condition by

controlling the length of season. The rent can be

based on the actual length and thus actual AUM

utilized or can be pre-determined and fixed at five or

six months. This means the rent can vary from year

to year or can be fixed.

4. Income Sharing Based on Contributions

This methodology looks at the potential production

that is generated off the land with the rent, then

based on the value of the meat (pounds of gain) or

animals produced (calf-share or steer-share). This

type of lease is more complex to calculate, but is

often viewed as a fair approach. There may also be

situations where the pasture owner is interested in

income-sharing for tax management reasons or wants

to build up his own herd. It is also an arrangement

where the landlord accepts some of the production

risk.

In the following example, the annual pasture rent

would be 13.6% of the value of the calves or animals

produced. Rents can be based on forecasted

projections of price and pounds of gain or can be

based on actual production figures. In this case,

rents would vary according to the pasture conditions

and market returns which has distinct advantages for

a tenant over some other options.

5. Market Approach

The market approach is based on what other

pasture rental agreements are in the local

community. Talking to neighbours and others who

rent land, can provide valuable information to

determine what is happening locally. Both parties

need to work through the calculations to determine

if the community standards are acceptable.

Another way to find out about the local market is

to advertise and ‘call for tenders’ where the

interested people, in writing, tell what they would

offer. This ‘call for tenders’ method is more

common among landlords who no longer live in the

area and do not have a good sense of what local

rents are.

Example 3.1 - Per AUM

owner's cost/ac = rent/AUM

AUMs/ac

$10.82 = $11.51/AUM

0.94 AUM/ac

Example 4.2 – Based on actual production

(Value of livestock at the end of the season – value of

livestock at the start of the season) x per cent share =

rent (can be cash or share of live animals)

Sept. 15: 24 feeders x 900 lb. x $0.95 = $20,520

May 1: Minus 25 feeders x 600 lb. x $1.00 =

$15,000

Rent = ($20,520 - $15,000) x 13.6%

Rent = $5,520 x 13.6% = $750.72

Example 4.1 – Based on estimated production

See the contributions worksheet in Appendix I. The

number of calves is estimated, growth in pounds is

estimated and valued (price per pound). The rent is

paid as a percentage of the production (the

percentage contributed by the landlord. In this case

the landlord receives 13.6% of the production or:

24 calves x 375 lb. x $1.10 x 13.6% = $1,346.40

Completing a Lease

Agreement

1. Read this publication and study the sample

clauses carefully to determine the impacts of each

clause. Consult with your Extension Agrologist

or Farm Management Agrologist, and your

lawyer.

2. Calculate what you think is an equitable rent

arrangement. Examples and worksheets are

included to serve as guidelines in calculating the

contributions of each party to the arrangement.

Working through these worksheets with the

tenant or landlord will help to ensure that an

equitable rent arrangement is established.

3. The landlord or tenant should meet, if possible,

to discuss the terms of a prospective lease,

deciding which clauses are needed and deleting

the ones which are not needed. Make changes

where desired and have one party draft the

prospective agreement.

4. Each party should then consult their own lawyer

to determine final wording to meet the needs of

both parties. Both parties sign the final copy in

duplicate.

5. The landlord and lawyer should ensure that the

requirements of The Homesteads Act are

fulfilled. This Act requires that the landlord's

non-owning spouse give written consent. A

sample form, Consent of Non-Owning Spouse is

provided. A homestead is any land(s) upon

which the spouses have lived since their marriage

in which the owning spouse has an equity

interest. A person may have several homesteads.

The Act also requires that the non-owning

spouse appear before a solicitor, notary public,

Justice of the Peace, Registrar of Land Titles,

local registrar of the Court of Queen's Bench or

district court judge to have the Certificate of

Acknowledgement completed. This is to ensure

that the non-owning spouse understands his/her

rights in the homestead and that he/she signs

the lease agreement and Consent of Non-

Owning Spouse of his/her own free will and

consent and without any compulsion on the

part of the owning spouse.

Complete the Affidavit of Landlord form if the

landlord has no spouse, or if the land in the

agreement has never been part of a homestead,

or if the homestead rights of the landlord’s

spouse were relinquished by an interspousal

agreement or Court Order pursuant to The

Matrimonial Property Act.

6. It is good practice to have the witness complete

an Affidavit of Execution that confirms both

parties completed the agreement.

7. If required now, or when needed in the future,

the tenant and landlord can complete a Consent

to Make Major Improvements form prior to

making any major improvements. It should be

clearly outlined what buildings or

improvements are to be made, who will pay the

cost of materials and how the tenant will be

compensated for his labour or any costs which

he may incur. Attach one copy of the form to

each copy of the lease agreement.

8. A tenant may wish to ensure the agreement

remains in effect if the land is sold to another

party. To do this, the tenant can file a caveat

with the appropriate Registrar of Land Titles.

Land Titles offices are located at Battleford,

Humboldt, Moose Jaw, Prince Albert, Regina,

Saskatoon, Swift Current and Yorkton. The

Land Titles Office can help with submitting the

correct documentation to file the caveat.

9. If the lease contains a renewal clause, the

landlord and tenant can utilize the Lease

Renewal form, the Consent of Non-Owning

Spouse form or Affidavit of Landlord form, and

the Affidavit of Execution form to renew the

lease agreement. All clauses in the lease

agreement should be reviewed and adjusted as

required. A caveat would have to be re-filed for

the new lease.

10. The Withdrawal and Discharge of Caveat form

is used to remove a caveat from the certificate of

title.

Other Issues

Liability protection for both the landlord and tenant

is becoming an important issue. Failure by a tenant

to adhere to some environmental law could impact

both parties. A landlord should address these issues

in the lease. An example of this is the issue of

manure management. In the agreement, a clause

dealing with manure management should refer to

soil test recommendations as the measuring tool as

well as protecting against nutrient loading. In all

cases, the amount of manure, fertilizer or soil

amendments should be restricted so that

overloading does not occur.

Another issue is smoke from burning of grass or

forages. If this smoke causes an accident on a

roadway, those responsible for the fire may be held

liable, including a landlord. The issue is to try to

take steps to protect against legal actions caused by

one of the parties. As stated many times in this

publication, consultation with a lawyer is

recommended.

Coping with drought and/or overgrazing is another

area that a landlord may wish to have the flexibility

to exercise some control. Overgrazing can result in

permanent damage to the forage stand and in turn

reduce future rentals or sale value.

Sample Pasture Lease Agreement

This lease made in duplicate the _____________________ day of ___________________ AD 19_____

Between

________________________________________ of ________________________________________

(Landlord's Name) (Address)

in the Province of Saskatchewan hereinafter called the "landlord" being the registered owner or the

purchaser under an Agreement for Sale of Land described below.

- and -

________________________________________ of ________________________________________

(Tenant's Name) (Address)

in the Province of Saskatchewan hereinafter called the “tenant."

1. Witness that in consideration of the rents, covenants, promises and agreements contained in this

lease on the part of the tenant to be paid, observed and performed, the landlord does hereby lease to the

tenant the following farm lands and premises situated in the Province of Saskatchewan, that is to say:

Land (legal description):

__________________________________________________________________________________

hereinafter called “the land.”

Together with the following portable buildings, namely:

Portable Buildings:

__________________________________________________________________________________

Excepting and reserving unto the landlord the following lands and buildings, namely:

Lands Reserved:

__________________________________________________________________________________

Buildings Reserved:

__________________________________________________________________________________

2. Term

This lease shall continue in force on the said land and premises for and during the term of

______________ years from the __________________ day of ____________________ AD 19______

to the ___________________ day of ______________________ AD 19______.

Any overholding by the tenant shall be considered a trespass.

3. Rental

Cash rental of $__________________ for use of the said land during the term of this lease, to be paid

on or before ________________________________ each year.

(Date)

- or -

__________________________________________________________________________________

4. Saskatchewan Laws Apply

The contents of this agreement shall for all purposes be construed according to the laws of the Province

of Saskatchewan and any cause of action arising hereunder shall be entered and tried in the judicial

centre serving the area of Saskatchewan in which the land of this agreement is located.

5. Landlord and Tenant Definitions

The terms "landlord" and "tenant" shall include their heirs, executors, administrators, successors and

assigns in the singular or plural number and feminine or masculine gender when the context or the

parties so require and all the covenants shall be construed as being joint and several.

6. Resource Protection

The tenant shall:

a) raise livestock and control weeds and insects on the land in a sustainable manner;

b) use pesticides in accordance with labelled directions.

The tenant shall not:

a) allow overgrazing of any of the land that is in grass or forages;

b) overload nutrient levels on the land or adjacent water bodies;

c) allow pesticide to drift on to non target lands, including adjacent lands and waterways;

d) accumulate, permit or allow the accumulation of any waste material, debris, refuse or garbage; and

allow any site contamination such as, but not limited to, chemicals, oil spills, hydro carbons or any other

waste materials on the land or adjacent water bodies.

7. Use of the Land

The tenant will use the lands and premises for the purpose of pasturing of livestock or forage

production, and the tenant shall not, without the written consent of the landlord:

a) sublet, or assign this lease, or any part thereof, or any interest therein without obtaining the written

consent of the landlord to the sublease or assignment;

b) change the natural course of any waterways on the said land;

c) cut down trees growing upon the land, nor will he permit any other person to do so;

d) allow the entry of any persons for the purpose of outfitting, eco-tourism, picking of berries or

flowers or any such plant materials;

e) remove any sand, gravel, clay, stone or other such substances existing on, or under the surface of

said land.

f) bring into cultivation any new lands.

8. Insurance

Insurance on all leased buildings in this agreement shall be the responsibility of the landlord.

9. Compensation for Oil and Gas, Utilities, Roads, and Rights-of-Way

Compensation for reasons such as, but not limited to, property damage and inconvenience from oil and

gas exploration, pipeline development, power and telephone line installations, or road construction, shall

accrue to the party that has suffered the loss. The landlord will have the final say on who has suffered

the loss except as follows:

a) where the compensation is for damage to the forage production, where the carrying capacity is

reduced, compensation will be paid to the tenant.

b) where the compensation is for work completed by the tenant such as, but not limited to, fence re-

construction, grass reseeding or top soil levelling, the compensation will be paid to the tenant.

c) where the compensation is for the creation of a nuisance situation such as, but not limited to, gates

being left open, dust or noise, the compensation will be paid to the tenant.

d) where the compensation is for a decrease in the land’s value such as, but not limited to, loss of acres

from the development, severing a parcel of land or top soil disturbance, the payment shall be made

to the landlord.

- or -

Compensation for reasons such as, but not limited to, property damage and inconvenience from oil and

gas exploration, pipeline development, power and telephone line installations, or road construction, shall

accrue to the landlord.

- or -

Compensation for reasons such as, but not limited to, property damage and inconvenience from oil and

gas exploration, pipeline development, power and telephone line installations or road construction, the

landlord and tenant shall, by mutual agreement, determine which party is to receive the compensation.

If mutual agreement cannot be reached, it shall be submitted to arbitration in accordance with The

Arbitration Act.

10. Taxes

The cost of all municipal and school taxes on the land included in this lease shall be paid by the landlord.

11. Improvements

The tenant shall not make major improvements, other than what is considered normal repair and

maintenance, to the leased land or any other assets identified in this agreement without written

permission of the landlord. Major improvements, which without restricting the generality of the term,

shall include water development, erosion control, fencing and building construction, clearing, breaking,

and seeding to pasture and hayland. Such consent shall be attached to and form part of the lease

agreement. The amount of compensation shall be an amount agreed upon by the landlord and tenant.

Title to all improvements shall vest in the landlord and no improvements shall be sold, removed,

disposed of or encumbered without the written consent of the landlord.

12. Repair of Buildings, Fences and Improvements

Responsibility for normal maintenance and repair to buildings, fences and improvements shall be as

follows:

Tenant's Responsibility (list items):

_________________________________________________________________________________

Landlord's Responsibility (list items):

_________________________________________________________________________________

13. The tenant shall protect the said land and indemnify the landlord in regard to any and all liens and

charges by reason of or in any way accruing from the construction of any building or the making of any

improvements thereon done by or on behalf of the tenant.

14. The tenant shall indemnify and save harmless the landlord against all claims, liabilities, demands,

damages or rights or causes of action whatever made or asserted by anyone arising out of or incidental

to this indenture or use or occupancy of the said lands and premises.

15. That if the term hereby granted or any of the goods and chattels of the tenant or his assigns shall be

at any time seized or taken in execution or in attachment by any creditors of the tenant or his assigns, or

if the tenant or his assigns shall make any assignment for the benefit of creditors, or becoming bankrupt

or insolvent, shall take the benefit of any Act that may be in force for bankrupt or insolvent debtors, or

if any writ of execution shall issue against the goods and chattels of the tenant or his assigns, the then

current year's rent shall immediately become due and payable, and the said term shall immediately

become forfeited and void at the option of the landlord.

16. That if the rent reserved or any part thereof be in arrears whether such rent has been demanded or

not, or if there be default, breach or non-observance by the tenant at any time or times of any covenant,

proviso, condition or reservation herein contained, which on the part of the tenant ought to be observed

or performed, whether such covenant be positive or negative, or if there by any seizure or forfeiture of

the said term for any of the causes herein specified, then the landlord or his agents may enter upon the

said lands and premises and thereafter have, possess and enjoy them as if his indenture had not been

made, and no acceptance of rent subsequent to any breach or default other than non-payment of rent

nor any condoning, excusing or overlooking by the landlord on previous occasions of breach or defaults

similar to that for which re-entry is made shall be taken to operate as a waiver of this condition, nor in

any way defeat or affect the rights of the landlord herein.

17. The tenant shall at the expiration of the said term or other sooner determination of this lease peaceably

and quietly leave, surrender and yield up onto the landlord the said lands and premises in good and sufficient

repair, reasonable wear and tear and damage by fire, lightning and tempest only excepted.

18. If the tenant fulfils the terms and conditions of this agreement, the tenant shall and may peaceably

possess and enjoy the said land for the said term, without any interruption or disturbance from the

landlord or any representative of the landlord.

19. The landlord or a representative of the landlord has the right at all reasonable times to attend and

inspect the said property. The landlord reserves the right of entry and exit over and upon the land in

this agreement to use any land and buildings expressly excluded from this agreement.

20. If either party shall fail in any respect to carry out any of the provisions of this lease agreement, the

other may have the same done, and the costs shall be paid by the party failing to carry out the said

provisions.

21. Renewal

The term of this lease may be extended by mutual agreement between the landlord and tenant for a

further period upon the same terms and conditions as contained herein, except as otherwise agreed in

writing by the parties executing a renewal statement.

22. Arbitration

The landlord and tenant may by mutual agreement submit any disagreement, which may arise with

respect to the terms and conditions of this lease, to arbitration in accordance with The Arbitration Act.

23. Termination

The landlord and tenant may mutually agree to terminate this lease at any time.

I, ___________________________________________ do hereby accept this lease of the above

(Tenant's Name)

described land to be held by me as tenant, and subject to the conditions, restrictions and covenants

above set forth.

In Witness whereof the parties have set their hands and seals this _________________________ day of

________________________ AD 19________.

SIGNED, SEALED AND DELIVERED IN THE )

PRESENCE OF: )

)

_____________________________________ ) __________________________________

As to the execution by landlord ) (Signature of Landlord)

)

AND IN THE PRESENCE OF: )

)

_____________________________________ ) __________________________________

As to the execution by tenant ) (Signature of Tenant)

Sample Forms

Consent of Non-Owning Spouse

I, _______________________________, non-owning spouse of ______________________________,

(Landlord's Spouse) (Landlord's Name)

consent to the attached disposition. I declare that I have signed this consent for the purpose of

relinquishing all my homestead rights in the property described in the above/attached disposition in

favour of _____________________________ to the extent necessary to give effect to this lease.

(Tenant's Name)

_____________________________

Signature of Non-Owning Spouse

Certificate of Acknowledgement

I, _________________________________________, ______________________________________,

(indicate capacity)

certify that I have examined ______________________________________, non-owning spouse of

(Landlord's Spouse)

______________________________________, the owning spouse, in the above/attached lease

(Landlord's Name)

separate and apart from the owning spouse. The non-owning spouse acknowledged to me that he or

she:

(a) signed the consent to the disposition of his or her own free will and consent and without any

compulsion on the part of the owning spouse; and

(b) understands his or her rights in the homestead.

I further certify that I have not, nor has my employer, partner or clerk, prepared the above/attached

lease and that I am not, nor is my employer, partner or clerk, otherwise interested in the transaction

involved.

__________________________________

Signature

(Lawyer, Notary Public, Justice of the

Peace, Registrar of Land Titles Office,

Local Registrar of the Court of Queen's Bench)

Affidavit of Landlord

I, __________________________________ of ___________________________________________,

in the Province of Saskatchewan, make oath and say that:

1. I am the landlord.

2. My spouse and I have not occupied the land described in this disposition as our homestead at any

time during our marriage.

- or -

2. I have no spouse.

- or -

2. My spouse is a registered owner of the land that is the subject matter of this disposition and a co-

signator of this disposition.

- or -

2. My spouse and I have entered into an interspousal agreement pursuant to The Matrimonial

Property Act in which my spouse has specifically released all his or her homestead rights in the land that

is the subject matter of this disposition.

- or -

2. An order has been made by Her Majesty's Court of Queen's Bench for Saskatchewan/Unified

Family Court pursuant to The Matrimonial Property Act declaring that my spouse has no homestead

rights in the land that is the subject matter of this disposition and (the order has not been appealed and

the time for appealing has expired) or (all appeals from the order have been disposed of or

discontinued).

- or -

2. My spouse is the landlord named in this disposition.

Sworn before me at _________________________ )

in the Province of __________________________ )

this __________ day of ______________, 19____. )

)

_________________________________________ ) _______________________________

(A Commissioner for Oaths in and for the ) (Signature of Landlord)

Province of Saskatchewan. My Commission )

expires _________________, 19___.) )

Affidavit of Execution

To Wit:

I, ____________________________________ of _________________________________________,

in the Province of Saskatchewan, make oath and say:

1. That I was personally present and did see ______________________________________ and

(Landlord's Name)

___________________________________ named in the within instrument who are personally known

(Tenant's Name)

to me to be the persons named therein, duly sign and execute the same for the purposes named therein.

2. That the same was executed at the ________________________ of ____________________,

in the Province of Saskatchewan, and I am the subscribing witness thereto.

3. That I know the said landlord and tenant and they are in my belief of the full age of eighteen

years.

Sworn before me at _________________________ )

in the Province of __________________________ )

this __________ day of ______________, 19____. )

)

_________________________________________ ) _______________________________

(A Commissioner for Oaths in and for the ) (Signature of Witness)

Province of Saskatchewan. My Commission )

expires _________________, 19___.) )

)

Consent to Make Major Improvements

Re: Land Lease Agreement between ______________________________________________ and

(Landlord's Name)

________________________________________ on the following farm land and premises:

(Tenant's Name)

_________________________________________________________________________________

from _________ day of _____________ AD 19___ to _________ day of _____________ AD 19___.

I, ________________________________________________ do hereby authorize

(Landlord's Name)

__________________________________________________ to make the following

(Tenant's Name)

major improvements on the said land which shall become part thereof and vest in the landlord at the

expiry or termination of the lease:

_________________________________________________________________________________

In so doing, the landlord will pay the tenant the following compensation for the improvements made:

_________________________________________________________________________________

______________________________________

(Date)

______________________________________ _______________________________________

(Witness) (Signature of Landlord)

______________________________________ _______________________________________

(Witness) (Signature of Tenant)

Lease Renewal

We, __________________________________ of __________________________________ and

(Landlord's Name) (Address)

______________________________________ of __________________________________,

(Tenant's Name) (Address)

being parties to a land lease agreement for the term of _______ years from ________________ day of

_________________ AD 19______ to the ________________ day of ______________ AD 19______

on the following farm land and premises:

__________________________________________________________________________________

do hereby extend the term of the said agreement for the space of _________ years from ____________

day of _______________ AD 19______ to the _______________ day of _____________ AD

19_____

according to the terms and conditions outlined in the said agreement unless specified differently,

that is to say:

__________________________________________________________________________________

I, ____________________________________, of ________________________________________,

(Tenant's Name) (Address)

do hereby accept this lease of the above described land, to be held by me as tenant, and subject to the

conditions, restrictions and covenants set forth above.

In witness whereof the parties have set their hands and seals this _____ day of _________ AD 19___.

SIGNED, SEALED AND DELIVERED IN THE )

PRESENCE OF: )

)

_____________________________________ ) __________________________________

As to the execution by landlord ) (Signature of Landlord)

)

AND IN THE PRESENCE OF: )

)

_____________________________________ ) __________________________________

As to the execution by tenant ) (Signature of Tenant)

Caveat

To the Registrar of the __________________________________ Land Registration District.

Take notice that I, _____________________________ of __________________________ claiming a

(Tenant's Name)

leasehold interest as tenant under a lease agreement between ________________________________

(Landlord's Name)

and _________________________________ on the following property (description):

(Tenant's Name)

_________________________________________________________________________________

from _______ day of ____________ AD 19___ to the _________day of ______________ AD 19___

forbid the registration of any transfer or other instrument affecting such land or the granting of a

certificate of title hereto except subject to the claim herein set forth.

My address in Saskatchewan is:

_____________________________________________________________

Dated this ____ day of _____________ AD 19______.

_____________________________________

(Signature of Tenant)

I, the above named _________________________________ of ______________________________

(Tenant's Name) (Address)

make oath and say:

1. That the allegations in the above Caveat are true in substance and in fact, to the best of my

knowledge, information and belief.

2. That the claim mentioned in the above Caveat is not, to the best of my knowledge, information and

belief founded upon a writing or a written order, contract or agreement for the purpose of delivery of

any chattel or chattels within the prohibition contained in Section 151 of The Land Titles Act.

Sworn before me at _________________________ )

in the Province of __________________________ )

this __________ day of ______________, 19____. )

)

_________________________________________ ) _______________________________

(A Commissioner for Oaths in and for the ) (Signature of Tenant)

Province of Saskatchewan. My Commission )

expires _________________, 19___.) )

Withdrawal and Discharge of Caveat

To the Registrar of the __________________________________ Land Registration District.

I, _______________________________ of __________________________________________,

(Tenant's Name) (Address)

do acknowledge that __________________________________ have no further interest under

(Tenant’s Name)

the Caveat made by _________________________________________ claiming a leasehold interest as

tenant in (land description):

_________________________________________________________________________________

which Caveat bears the date of the ________________ day of _____________________ AD 19___

and was registered in the Land Titles Office for the _______________________________________

Land Registration District on the _________________ day of _____________________ AD 19___.

Caveat Number _______________, and that such Caveat is hereby withdrawn and discharged. In

witness whereof I have hereunto set my hand and seal this ________________ day of

______________ AD 19___.

Signed by the above named in the presence of )

)

________________________________________ ) ____________________________________

(Witness) ) (Signature of Tenant)

Appendix I: Contributions Worksheet

Source: Cow-calf Enterprise Financial Targets for Farm Managers, for information on how these

numbers were derived, see this publication.

The above figures were developed for a 160 acre parcel, carrying capacity is assumed to be 25 head for

six months (total 150 AUM or 0.94 AUM/ac.).

Tenant’s Costs per Animal:

Benchmark Farm Your Farm

For 25 Cows Total Per Cow

Operating Costs Total Per Cow

Feed $2851.00 $114.04 __________ __________

Bedding 250.00 10.00 __________ __________

Veterinary & Medicine 611.25 24.45 __________ __________

Breeding 703.50 28.14 __________ __________

Herd Replacement 1500.00 60.00 __________ __________

Death Loss 275.00 11.00 __________ __________

Marketing 584.25 23.37 __________ __________

Fuel, Lube & Repairs 300.00 12.00 __________ __________

Manure Removal 375.00 15.00 __________ __________

Facility & Fence 246.25 9.85 __________ __________

Miscellaneous 125.00 5.00 __________ __________

Subtotal Operating 7821.25 312.85 __________ __________

Operating Interest 391.06 15.64 __________ __________

Total Operating 8212.31 328.49 __________ __________

Fixed Costs

Depreciation

Facilities 392.25 15.69 __________ __________

Equipment 359.25 14.37 __________ __________

Interest on Investment

Facilities 274.50 10.98 __________ __________

Equipment 177.75 7.11 __________ __________

Breeding Herd 1575.00 63.00 __________ __________

Total Fixed Costs 2778.75 111.15 __________ __________

Total Costs $10991.00 $439.64 __________ __________

The above figures were developed for a 160 acre parcel, fenced on all four sides with one dugout. The

land was valued at $20,000 with taxes set at $1.25/acre.

Fence Costs Water Development Costs

Depreciation Depreciation

Original cost $2000/mile Original cost $2500

Salvage value 500/mile Salvage value 500

Years of use 20 Years of use 20

Total $75/mile Total $100/dugout

Interest on Investment Interest on Investment

Original cost $2000/mile Original cost $2500

Salvage value 500/mile Salvage value 500

Interest rate 7% Interest rate 7%

Total $88/mile Total $105/dugout

Total fence costs = 2 miles at $163/mile = $326 Total water costs = $205/dugout

Land

Value of land $20,000.00

Investment rate 5%

Investment cost 1000.00

Taxes 200.00

Total land costs 1200.00

By the contributions approach, the final outcome of this example is that the tenant contributes

$439.64/cow or 86.4%; the landlord contributes $69.24/cow or 13.6%.

Landlord’s Costs per Animal

Benchmark Farm Your Farm

Total Per Cow Total Per Cow

Fence $326.00 $13.04 __________ __________

Water 205.00 8.20 __________ __________

Land

Interest on Investment 1000.00 40.00 __________ __________

Taxes 200.00 8.00 __________ __________

Total Landlord’s Costs $1731.00 $69.24 __________ __________

APPENDIX II: Stocking Rate Guide for Native Pastures

Table 1. Recommended Stocking Rates (AUM/acre)

for the Dry Areas in the Brown Soil Zone

Range Range Condition

Sites Excellent Good Fair Poor

Clayey 0.25 0.20 0.16 0.13

Loamy 0.26 0.20 0.16 0.13

Sandy 0.20 0.16 0.13 0.10

Sand 0.20 0.16 0.13 0.10

Dune Sand 0.15 0.12 0.10 0.08

Saline Upland 0.15 0.12 0.10 0.08

Gravelly 0.15 0.12 0.10 0.08

Saline lowland 0.25 0.20 0.16 0.13

Wetland 0.60 0.48 0.38 0.30

Table 2. Recommended Stocking Rates (AUM/acre)

for the Moist Areas in the Brown Soil Zone

Range Range Condition

Sites Excellent Good Fair Poor

Clayey 0.35 0.28 0.22 0.17

Loamy 0.35 0.28 0.22 0.17

Sandy 0.30 0.24 0.19 0.15

Sand 0.30 0.24 0.19 0.15

Dune Sand 0.20 0.16 0.13 0.10

Saline Upland 0.20 0.16 0.13 0.10

Gravelly 0.20 0.16 0.13 0.10

Saline lowland 0.35 0.28 0.22 0.17

Wetland 0.70 0.56 0.45 0.36

Table 3. Recommended Stocking Rates (AUM/acre)

for the Nonwooded Areas in the Dark Brown Soil Zone

Range Range Condition

Sites Excellent Good Fair Poor

Clayey 0.45 0.36 0.29 0.23

Loamy 0.45 0.36 0.29 0.23

Sandy 0.40 0.32 0.26 0.21

Sand 0.40 0.32 0.26 0.21

Dune Sand 0.30 0.24 0.19 0.15

Saline Upland 0.25 0.20 0.16 0.13

Gravelly 0.25 0.20 0.16 0.13

Saline lowland 0.45 0.36 0.29 0.23

Wetland 0.80 0.64 0.51 0.41

Table 4. Recommended Stocking Rates (AUM/acre)

for the Nonwooded Areas in the Black Soil Zone.

Range Range Condition

Sites Excellent Good Fair Poor

Clayey 0.55 0.44 0.35 0.28

Loamy 0.55 0.44 0.35 0.28

Sandy 0.45 0.36 0.29 0.23

Sand 0.45 0.36 0.29 0.23

Dune Sand 0.30 0.24 0.19 0.15

Saline Upland 0.30 0.24 0.19 0.15

Gravelly 0.30 0.24 0.19 0.15

Saline lowland 0.55 0.44 0.35 0.28

Wetland 0.90 0.72 0.58 0.46

Table 5. Recommended Stocking Rates*(AUM/acre)

for Wooded Areas

Soil Zone

Vegetation Dark Dark

or Site Brown Black Gray Gray

ASPEN

Normal Upland 0.10 0.10 0.15 0.15

Dune Sand 0.10 0.20 0.15 0.15

Closed Depression 0.10 0.20 0.15 0.15

Thin N/A 0.10 0.10 0.10

CLEARED

Nonseeded N/A ----- 0.40 0.40

OTHERS

Wetland N/A N/A 0.40 0.40

*Rates are for stands in satisfactory conditions.

N/A: Not applicable, see the previous two tables.

---- No data or sites are not common

Table 6. Suggested Reduction in Cattle Carrying Capacity

According to Percentage Slope

% Slope % Reduction in Carrying Capacity

0 – 10 No Reduction

11 –30 30

31- 60 60

over 60 100

(Ungrazable)

Table 7. Suggested Reduction in Carrying Capacity

According to Distance From Water

Distance from Water (km) % Reduction in Carrying Capacity

0 – 1,5 None

1,5 – 3 50

> 3 100

(Ungrazable)

Source : Zoheir Abouguendia, Range Plan Development, New Pastures and

Grazing Technologies Project, 1990

APPENDIX III: Stocking Rate Guide for Seeded Pastures

SEEDED PASTURE CONDITION CLASSES

CONDITION

STOCKING RATE CRITERIA

Excellent 133% of good

pasture

1. 95% of the production coming from desirable species.

2. Less than 5% of the total production coming from weeds or undesirable plants.

3. Less than 1% exposed soil and more than 95% litter cover.

Good 100% of good

pasture

1. 75-94% of the production coming from desirable species.

2. Less than 10% of the production coming from weeds or undesirable plants.

3. Less than 5% exposed soil and over 95% litter cover.

Fair 67% of good

pasture

1. 51-74% of the production coming from desirable species.

2. 25% or more of the total production coming from weeds or undesirable plants.

3. Less than 5% exposed soil and greater than 75% litter cover.

Poor 33% of good

pasture

1. Less than 50% of the production coming from desirable species.

2. 50% or more of the total production coming from weeds or undesirable plants.

3. Exposed soil and a lack of litter is a management concern.

4. Should be cultivated and reseeded to desirable grasses and legumes.

Above table was adapted from G. Ehlert, Alberta Agriculture, 1990.

Initial Stocking Rates (AUM/acre) for

Crested Wheat Grass in Good Condition

Soil Texture

Medium and

Heavy

Light

Stand Age in Years

Soil Zone

1–3 4-6 7+ 1-3 4-6 7+

Brown

0.9 0.7 0.4 0.6 0.5 0.4

Dark Brown

1.4 1.1 0.7 1.2 0.9 0.6

Black & Grey

1.8 1.4 0.9 1.6 1.2 0.8

Initial Stocking Rates (AUM/acre) for

Smooth-Brome Grass in Good Condition

Soil Texture

Medium and

Heavy

Light

Stand Age in Years

Soil Zone

1–3 4-6 7+ 1-3 4-6 7+

Brown

0.6 0.5 0.3 0.5 0.4 0.3

Dark Brown

1.4 1.0 0.7 1.2 0.9 0.6

Black & Grey

1.6 1.2 0.8 1.5 1.1 0.7

Initial Stocking Rates (AUM/acre) for Alti

Wildrye Grass in Good Condition

Soil Texture

Medium and

Heavy

Light

Stand Age in Years

Soil Zone

1–3 4-6 7+ 1-3 4-6 7+

Brown

0.7 0.5 0.3 0.6 0.4 0.3

Dark Brown

1.4 1.1 0.7 1.2 0.9 0.6

Black & Grey

1.0 0.8 0.5 0.9 0.7 0.5

Initial Stocking Rates (AUM/acre) for

Russion Wild Rye Grass in Good Condition

Soil Texture

Medium and

Heavy

Light

Stand Age in Years

Soil Zone

1–3 4-6 7+ 1-3 4-6 7+

Brown

0.8 0.6 0.5 0.7 0.5 0.3

Dark Brown

1.0 0.7 0.5 0.9 0.6 0.4

Black & Grey

0.8 0.6 0.4 0.7 0.6 0.4

Above tables by Michel Tremblay, Saskatchewan Agriculture and Food and Brant Kirychuk, PFRA. For

more information see Farmfact titled Initial Stocking Rate Recommendations for Seeded Forages in

Saskatchewan