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Agricultural Operations on Airport Grounds (2022)

Chapter: Appendix F - Sample Airport Farmland Lease Agreement

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Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
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Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
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Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
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Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
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Page 71
Page 72
Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
×
Page 72
Page 73
Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
×
Page 73
Page 74
Suggested Citation:"Appendix F - Sample Airport Farmland Lease Agreement." National Academies of Sciences, Engineering, and Medicine. 2022. Agricultural Operations on Airport Grounds. Washington, DC: The National Academies Press. doi: 10.17226/26543.
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Page 74

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

68 A P P E N D I X F Sample Airport Farmland Lease Agreement The sample airport agricultural land lease agreement provided is for example purposes only and may serve as a guide for assisting airport officials with developing their own lease agreement. The sample lease provided here is not intended to represent every lease consideration that may present itself in the development of a program or lease agreement. Every scenario between stakeholders cannot be anticipated for each unique airport and as such, this tool is designed to raise awareness of potential lease considerations. This sample lease is not intended to be used in place of a locally developed lease agreement subject to any review by legal counsel. Parties: This Farm Lease and Security Agreement (“Lease”) is entered into by and between ______________________, (collectively referred to herein as the “OWNER”), and _________________ hereinafter referred to as “OPERATOR.” Property: OWNER Leases to OPERATOR the following described real property (“Property”): ___________________________________________________________________________________containing approximately ______ acres, excepting there from all rights to hunt, fish, trap or otherwise take or harvest fish and game upon the Property, all of which rights (including the right to Lease) are reserved to OWNER, its successors and assigns. Term: The term of this Lease shall begin on __________ and shall end on ___________ without notice of any type being required of OWNER, unless expressly required by applicable state law. Provided, however, that OWNER may terminate this Lease at any time upon OPERATOR’s failure to timely pay the full amount of any rent due hereunder. Rent: OPERATOR shall pay rent to OWNER, as follows: $$$$ FOR _________ ± TILLABLE ACRES. $___________ COVER CROP DEPOSIT TO BE REFUNDED AFTER INVOICES AND APPLICATION MAPS FROM VENDOR(S) ARE SENT TO OWNER. CASH RENT AND COVER CROP DEPOSIT IS DUE AS FOLLOWS WITH A CHECK MADE PAYABLE TO _________________________ AIRPORT: Date _________________ Amount ________________ Provided, however, if all of the rent due hereunder is paid in full on or before ____________, or if the OPERATOR has provided the MANAGER with a satisfactory and enforceable Letter of Credit securing any remaining rent due hereunder, the provisions of Operating Covenants 7 through 11, below, shall not apply. All crops will be planted, and all cropping practices conducted in accordance with a written crop plan between OWNER and OPERATOR (“Crop Plan”) which shall be made a part of this Lease. Expenses: Except as otherwise specified herein, all expenses incident to the operation of the Property during the term of this Lease shall be paid by OPERATOR.

Sample Airport Farmland Lease Agreement 69   Farm Programs: All decisions concerning participation of the Property in any Local, State, or Federal agricultural, conservation or similar programs shall be at the discretion of OWNER in accordance with the Crop Plan. Any division of payments shall be in conformity with applicable governmental laws and regulations. It is mutually understood and agreed that if OPERATOR a) receives any advance government program payments for the farm year covered by this Lease or any subsequent year, and b) fails or refuses to comply with the terms and conditions of this Lease, and c) is terminated by OWNER as OPERATOR under this Lease for any reason, then OPERATOR agrees to immediately return the advanced government program payments. As determined by the Farm Service Agency, the payments shall either be returned to the FSA, or paid to the new tenant to whom the Property is Leased for the applicable farm year. Agricultural Chemicals: OPERATOR agrees that the amounts of fertilizer, lime, and other agricultural chemicals to be applied will be in accordance with the Crop Plan agreed to with OWNER. OPERATOR AGREES TO APPLY LIME IN SUFFICIENT AMOUNT TO MAINTAIN A MINIMUM pH LEVEL OF 6.4 AT THE CONCLUSION OF THE GROWING SEASON. OPERATOR TO COMPLETE SOIL TESTING AT THE DIRECTION OF THE MANAGER WITH THE INTERVALS NOT TO EXCEED THREE YEARS BETWEEN TESTS AND TO FURNISH COPIES TO THE FARM MANAGER UPON REQUEST. THIS SHALL APPLY UNLESS OTHERWISE STATED IN THE AG CHEMICALS SECTION. Operating Covenants: The following paragraphs may be deleted, under appropriate circumstances: OPERATING COVENANTS: 1. Rent: Cash rent shall be paid on the dates set forth herein, without further notice from OWNER to OPERATOR. Cash rent not paid when due shall bear interest until paid, at the rate of 18% per annum, or the highest rate allowed by the laws of the state where the Property is located, whichever is less. OPERATOR agrees to pay a service charge of $25 for any returned or insufficient funds check. 2. Assignment - Subleasing: OPERATOR agrees not to assign this Lease to any other person, nor sublease all or any part of the Property without the prior written permission of OWNER. For the purpose of this section, an assignment of this Lease shall be deemed to have taken place when all or substantially all of the agricultural operations are performed by hired labor or by one or more third parties hired by OPERATOR to perform agricultural operations on a custom basis. 3. Right to Enter: OWNER, its agents, assigns, lessees, or contractors shall have the right to go upon the Property at any time to inspect the same or to make repairs or improvements thereon, or for any other purposes incidental to the management of the Property. OWNER, its lessees, agents, assigns or contractors shall also have the right to go upon the land to fall till, or develop the land for irrigation, to install conservation structures, to seed or sow any grain or grass thereon or to hunt, fish, trap or otherwise take or harvest fish and game from the Property. 4. Litigation: In the event of default by OPERATOR resulting in OWNER employing an attorney for the purpose of enforcing any provision of this Lease or regaining possession of the Property, OPERATOR agrees to pay OWNER’s reasonable attorney’s fees and expenses on demand. Delinquent payments shall draw interest at the default rate referred to in Operating Covenant 1. 5. Default: All covenants and agreement contained in this Lease are declared to be conditions of the Lease for the term demised to OPERATOR. Should OPERATOR default in the performance of any covenant, condition or agreement contained herein, OWNER may terminate the Lease as provided herein, and/or bring an action for damages, performance, or other suitable remedy in a court of competent jurisdiction. Any waiver or failure by OWNER to strictly enforce any provision of this agreement shall not be deemed to restrict or limit OWNER’s ability to strictly enforce said provision at any time thereafter. 6. Failure to Perform / Right of Entry: OPERATOR agrees that if he or she fails to diligently perform any agricultural activity provided for hereunder for the proper operation and management of the Property at the proper time, or in the proper manner, or if he or she fails to follow Crop Plan or assigns this Lease or subleases the Property in whole or in part, OWNER may, after giving OPERATOR 72 hours written notice, personally delivered to OPERATOR, or sent to OPERATOR’s last known address by U. S. Mail, postage pre-paid, either (a) declare this Lease to be terminated and take immediate possession of the Property, and/or (b) enter upon the Property in person or by agent or contractor and perform the necessary agricultural activities which OPERATOR should have done, and OWNER shall add all expenses incurred therewith to the rent to be paid hereunder, the same to be immediately due and bear interest until paid at the rate set forth under Operating Covenant 1. 7. Financial Statement: OPERATOR agrees to furnish OWNER a statement showing OPERATOR’s current financial position upon request of OWNER.

70 Agricultural Operations on Airport Grounds 8. Insolvency of OPERATOR: The insolvency of OPERATOR, a receiver being appointed to take possession of all or substantially all of the Property of OPERATOR, the filing of a voluntary or involuntary bankruptcy proceeding or the making of a general assignment for the benefit of creditors by OPERATOR shall, to the extent allowed by law, entitle OWNER to terminate the Lease and immediately re-enter and regain possession and operation of the Property. 9. Sale and Removal of Crops: OPERATOR agrees and acknowledges that, until the scheduled cash rent payments due hereunder have been paid and are not delinquent, and all of the grain has been delivered, OWNER shall have Property rights in the crops produced on the Property, and therefore covenants and agrees not to sell or remove any of the crops raised on the Property during the term of this Lease until the rent due hereunder has been fully paid or OWNER has given OPERATOR written consent to such sale or removal. 10. Security Interest: OPERATOR hereby grants OWNER a security interest in all crops growing or to be grown on the Property, on all harvested crops now owned or hereafter acquired by OPERATOR, wherever stored, grown, or produced, on the Property, on all livestock kept or pastured on the Property, and on all proceeds of such crops and livestock. The security interest granted herein shall extend to and cover all warehouse receipts issued by any warehouse as evidence of the delivery and storage of crops. It shall also extend to general intangibles, accounts, and rents, issues and profits, and farm program payments or entitlements of every type. The security interest shall also extend to any proceeds recovered under insurance policies covering the crops. OPERATOR agrees to execute any and all documents required to grant this security interest and perfect an enforceable lien for the benefit of OWNER. OPERATOR shall furnish owner a list of buyers, commission merchants, and selling agents to or through whom OPERATOR may sell crops growing or to be grown on the Property, in accordance with the Food Security Act of 1985. 11. Warranty of OPERATOR: OPERATOR expressly warrants and guarantees to OWNER that any security interest granted to OWNER is a first security interest, prior and paramount to any and all other security interests pertaining to the Property covered thereby, including, but not limited to those that may have been granted to a lender, machinery or equipment provider, or crop input provider. OPERATOR further agrees that if this warranty and guaranty is breached, OPERATOR will promptly obtain such releases, waivers or subordinations from other secured parties as may be required to provide OWNER with a first security interest, and upon failure to do so, OWNER may, in addition to any other remedy it may have hereunder, immediately terminate this Lease and enter into full possession of the Property. 12. OPERATOR’s Contribution: Accounting: OPERATOR agrees: (a) to follow the agricultural practices that are currently recommended for, and that are best adapted to this type of Property and crops, and this locality, unless other practices are expressly agreed upon with OWNER; (b) to furnish all labor and equipment necessary to operate the Property; and (c) to promptly complete a “harvest results” card, and return it to OWNER within 48 hours following delivery of OWNER’S harvested grain, (d) to reimburse OWNER for any marketing loss experienced by OWNER as a result of OPERATOR’s failure to provide the harvest results to OWNER as required under (c), above. Despite any provision herein to the contrary, OPERATOR shall provide, at its own cost and expense, complete and accurate yield documentation to OWNER within two (2) weeks following harvest of each crop grown on the Property. Yield documentation under this Paragraph shall be in the form of scale tickets, yield monitor data, or actual grain bin measurements. 13. Care of Property: OPERATOR agrees that he will: a) cultivate and otherwise operate the Property in a professional workmanlike manner, and in accordance with the Crop Plan and generally recognized and approved agricultural practices; b) when so directed, farm on the contour, or use minimum tillage or no tillage agricultural practices; c) operate the Property in conformity with appropriate soil and water conservation practices, and in such a way as to maintain and if possible enhance soil productivity; d) operate the Property in conformity with all required or applicable conservation plans or programs, including but not limited to those subject to the jurisdiction of USDA and EPA and their related agencies; and e) keep the Property clean and free of trash, rubbish, refuse, dead animals and waste. 14. Environmental Compliance: (a) OPERATOR warrants that he is knowledgeable of the Federal, State and Local laws and regulations pertaining to the operation of the Property with regard to matters of environmental compliance, and the protection and preservation of soil, water and other natural resources; (b) OPERATOR warrants that he will operate the Property in full compliance with all such laws, and will notify OWNER immediately of any accidents, problems, conditions or occurrences on the Property which may threaten compliance with such laws or regulations, or which may result in liability or damage being imposed upon the Agent or the Property Owner; (c) OPERATOR warrants that all fertilizers, agricultural chemicals, petroleum products and hazardous or toxic wastes or substances in, on, or affecting the Property will be handled, used, stored, contained, transported, applied, removed and/or disposed of in accordance with all applicable laws, regulations, manufacturer’s directions and labeling; (d) OPERATOR acknowledges that he is knowledgeable of the Worker Protection Standard adopted by EPA, and warrants that he will see that the requirements of the Standard are adhered to in regard to the use and application of

Sample Airport Farmland Lease Agreement 71   agricultural chemicals on the Property; and (e) OPERATOR agrees to complete any Environmental Questionnaires or other requests for environmental information solicited by OWNER. 15. Machinery and Equipment: OPERATOR shall be responsible for providing the machinery and equipment necessary for planting, cultivating and harvesting the crops, and for any other agricultural operations incidental to operating the Property covered by this Lease. All costs of purchasing, renting, leasing, and operating the machinery and equipment, including the cost of custom operations, shall be paid by OPERATOR, except as otherwise specified herein. 16. Weed Control: OPERATOR agrees to keep the cultivated areas clean and free from weeds and further agrees to cut or spray weeds, trees and shrubs growing in the fence rows and non-crop areas, as are necessary to keep these areas neat and presentable. All costs involved in controlling weeds shall be paid by OPERATOR except as otherwise specified herein. OPERATOR agrees to mow the roadsides as often as necessary to present a neat appearance or as directed by OWNER. 17. Insect and Disease Control: OPERATOR agrees to carry out all approved practices for the control and eradication of corn borer, rootworm, and other crop insects, pests and diseases, as may be necessary, at his own cost, unless otherwise specified herein, or in writing by OWNER. 18. Fertilizers, Lime and Manure: OPERATOR agrees to haul out and distribute, as agreed with OWNER, any manure and/or compost suitable to be used, and to apply at the proper time and in the proper manner all fertilizers and agricultural lime. Further, OPERATOR will, upon request, provide OWNER with receipts, sale tickets, application records, and other documentation showing the use or application of all agricultural chemicals to which state, federal or local record keeping requirements apply. OPERATOR shall be responsible for all costs of purchasing, transporting, and applying manure, fertilizers, and agricultural lime, except as otherwise agreed herein or in writing by OWNER. 19. Crop Handling: If applicable, OPERATOR shall be responsible for the costs of handling crops raised on the Property, unless otherwise agreed herein or in writing by OWNER. For purposes of this paragraph, “handling” shall include, but shall not be limited to placing crops in storage facilities located on the Property, hauling to a grain elevator or other facility selected by OWNER, and such other handling services as required from time to time by OWNER. 20. Straw and Stalks: OPERATOR agrees not to burn any stacks, straw, stalks, or stubble, or to remove any straw or stalks from the Property, unless otherwise expressly agreed herein, or in writing by OWNER. 21. Improvements: OPERATOR agrees to perform ordinary maintenance tasks and will otherwise properly maintain all buildings, tile lines, fences, irrigation equipment, water systems and other improvements on the Property, and shall yield them up to OWNER at the end of the Lease term in as good order and condition as at the beginning thereof, normal wear and tear excepted. OPERATOR further agrees to provide labor and to haul such materials as may be necessary for said maintenance, and to provide the labor and materials necessary to make minor repairs to said improvements that are or may be due as a result of ordinary wear and tear. OPERATOR shall be solely responsible for the cost of making repairs to improvements which have been damaged or destroyed because of OPERATOR’s failure to maintain, or otherwise because of OPERATOR’s neglect, abuse, negligence, or lack of attention. It is mutually understood and agreed that OWNER shall not be obligated to replace any improvements lost or destroyed, regardless of whether or not such loss was covered by insurance. 22. Fences: OPERATOR will maintain and remove fences located on the Property at the request of OWNER without charge for labor. In the event new fence is required, compensation shall be as provided for elsewhere herein. 23. Improvements Made by OPERATOR: It is mutually understood and agreed between the parties hereto that all buildings, fences and improvements of every kind and nature that may be erected upon the above-described Property during the term of this Lease by OPERATOR shall be deemed as additional rent and shall inure to the Property and become the Property of OWNER unless permission to erect and remove the same shall be obtained beforehand, in writing, and made a part of this Lease. 24. Insurance: OPERATOR shall carry the following types and minimum coverage of insurance: (a) Worker’s Compensation Insurance if required under the laws of the state where the Property is located; (b) Comprehensive General Liability Insurance, including Employer’s Liability, with respect to OPERATOR’s use and occupancy of the Property and all operations incidental thereto, with limits of not less than $1,000,000 per occurrence. Operator may at the option of OWNER be required to name OWNER and the Agent as additional insureds. This insurance shall also provide contractual liability insurance covering the obligations assumed by OPERATOR under the indemnity provisions under Operating Covenant 25(a) only; (c) Automobile Liability Insurance on all owned, non- owned, hired or Leased automotive equipment in conjunction with operations, in amounts not less than $500,000 per occurrence; and (d) If required by OWNER, crop or crop/revenue insurance coverage. If crop or crop/revenue insurance is required, it will be set forth in Operating Covenant 40, below. OPERATOR hereby certifies that all applicable insurance coverages are currently in effect and will remain in effect and unchanged throughout the term of this Lease and will provide a certificate of insurance to OWNER upon request.

72 Agricultural Operations on Airport Grounds 25. Indemnification: OPERATOR agrees to indemnify and hold OWNER harmless from any and all claims, liability, loss, damage or expenses resulting from OPERATOR’s occupation and use of the Property, specifically including without limitation any claim, liability, loss or damage arising: (a) by reason of the injury to person or Property from whatever cause (other than negligence or misconduct by OWNER) while in, on or near the Property or in any way connected with the Property or with the improvements or personal Property in or on the Property, including any liability for injury to the person or personal Property of OPERATOR its agents or employees; (b) By reason of any work performed on the Property or materials furnished on the Property at the instance of or request of OPERATOR, its agents or employees, other than negligence or misconduct by OWNER, its agents or employees; (c) By reason of OPERATOR’s failure to perform any provision of this Lease or to comply with any requirement imposed upon it or on the Property by any duly authorized governmental agency or political subdivision; provided that OPERATOR shall not be responsible to comply with any requirements necessitating structural or permanent improvements or changes to the Property; (d) Because of OPERATOR’s failure or inability to pay as they become due any obligation incurred by it in the agricultural or other operations conducted by it on the Property. OWNER will indemnify OPERATOR for losses to OPERATOR’s livestock and equipment resulting from OWNER’s Lease of hunting rights on the Property to third parties. The provisions of the foregoing indemnification agreement shall remain in effect following the termination of this Lease. 26. Independent Contractors: If OPERATOR employs independent contractors to perform any work on the Property, or to conduct its farming operation, OPERATOR shall supervise the work performed by such contractors and assure OWNER that each contractor maintains in full force and effect, at contractor’s sole cost and expense, the kinds and amounts of insurance specified in Operating Covenant 24 herein, and any other insurance OWNER deems reasonably necessary or desirable, under the circumstances. 27. Expiration of Term; Termination: Upon expiration of the term of this Lease, or upon termination of the Lease prior to expiration of the term, OPERATOR covenants and agrees as follows: a) OPERATOR will promptly surrender possession of the Property to OWNER or its designee in as good order and condition as when the same was entered upon by OPERATOR, loss by fire, acts of God, or ordinary wear and tear excepted; b) OPERATOR will, prior to the expiration or termination date, remove all of its grain, farm equipment, livestock, tools, supplies, rubbish, and personal Property of all type and description from the Property at its own cost and expense; c) If OPERATOR should fail to deliver possession of the Property to OWNER or otherwise fails to comply with the terms of this Paragraph 27, OWNER may at its option, take such action as required by local law to obtain possession of the Property and to remove OPERATOR’s personal Property, at OPERATOR’s sole cost and expense, or charge OPERATOR liquidated damages in the amount of $100 per day until possession has been delivered and OPERATOR’s personal Property has been removed, it being agreed that it would be difficult to determine the actual amount of damages that may be suffered by OWNER by reason of OPERATOR’s failure to yield possession. 28. Binding on Heirs: Except as provided in Paragraph 34, and except as may be mutually agreed by the parties, the provisions of this Lease shall be binding upon the heirs, executors, administrators, and successors of both OWNER and OPERATOR in like manner as upon the original parties. The rights referred to herein shall not include subleasing or assignment as set forth above. 29. Partnership Not Created: This Lease should not be construed as giving rise to a partnership, and neither party shall be liable for debts or obligations of the other without written consent, and OPERATOR has no authority to incur any obligation on behalf of OWNER or AGENT. 30. Notices: Except as otherwise expressly provided by law, any and all notices or communications required or permitted by this Lease or by law to be served on or given to either party hereto by the other party shall be in writing and shall be deemed to be duly served and given when personally delivered, or deposited in the United States Mail, First Class, postage pre-paid, addressed to the party at its last known address. 31. Time of Essence: Time is expressly declared to be of the essence in this Lease. 32. Farm Programs: Participation of the Property in any Local, State or Federal agricultural, conservation or similar programs, or any program for carbon sequestration, and compliance with the terms and conditions of such programs shall be subject to the direction and control of OWNER. 33. Sale of Property: OPERATOR acknowledges and agrees that the Property Owner may desire to sell the Property between the time this Lease is made and entered into and the following January 1st. If a sale contract on the Property is entered into, and OPERATOR is notified in writing of the sale, before such January 1st, OPERATOR agrees to terminate this Lease and to return full possession of the Property to OWNER. OWNER agrees to reimburse OPERATOR for any labor or inputs provided by OPERATOR in anticipation of the upcoming crop year. Reimbursement shall be at a rate not in excess of the custom rates published by the local State University or County Extension Office. 34. Death or Incapacity of OPERATOR: OPERATOR agrees that this Lease is a personal services contract with OWNER, and that in the event of OPERATOR’s death or disability prior to commencement of farming operations

Sample Airport Farmland Lease Agreement 73   or payment of all rent due hereunder, whichever occurs first, this Lease shall, at OWNER’s option, not take effect and shall be null and void. 35. Termination - Compensation for Work Done: OPERATOR acknowledges and agrees that this Lease will terminate on the date set forth under Term, above, and that OPERATOR is not authorized to provide labor or inputs of any kind in anticipation of growing crops to be harvested following the termination date (i.e., wheat), without the written approval of OWNER. OPERATOR shall not be entitled to reimbursement for labor or inputs voluntarily provided, without prior written approval. Where approval has been granted, reimbursement shall be at a rate not in excess of the custom rates published by the local State University or County Extension Office. 36. Possession - Liability: OWNER shall not be liable in damages for its failure to deliver possession of the Property for any cause beyond its control. 37. Extension of Term - Amendments: The parties hereto agree that no act of either party or both parties hereunder shall be construed as an extension of this Lease or any change in its terms unless the same is reduced to writing and signed by both parties. 38. Oil, Gas and Minerals: This Lease is subject to all oil, gas or mineral Leases heretofore or hereafter executed by OWNER or its agents. OPERATOR agrees to allowing exploration companies to enter upon the Property and make such exploration and drilling as may be proper at any time upon agreement by the exploration companies to pay for all damages to growing crops of OPERATOR and growing crops and Property of OWNER. Upon request, OPERATOR shall be notified by OWNER of known or anticipated oil, gas or mineral exploration activity. 39. General: (a) It is mutually understood and agreed that the use of Global Positioning Technology on the Property requires the prior consent and approval of OWNER, which consent, and approval will not be unreasonably withheld; ownership, access to, and use of all information generated through the use of Global Positioning Technology shall be the property of OWNER, unless otherwise mutually agreed upon in advance by OWNER and OPERATOR, in writing; to the extent OPERATOR is in possession of such information, it will promptly deliver the same to OWNER upon request; and (b) It is mutually understood and agreed that this Lease shall be governed by the laws of the state in which the Property is located. It is further recognized by the parties that certain form provisions of this Lease may not apply due to the particular type of agricultural operation covered. Therefore, this Lease shall be understood and interpreted in a manner consistent with the actual agricultural operation covered herein, and the applicable laws of the state in which the Property is located. 40. Miscellaneous Provisions: 1. OWNER RESERVES THE RIGHT TO DEMAND POSSESSION OF ALL, OR ANY PORTION, OF THE LEASED PREMISES AT ANY TIME BEFORE EXPIRATION OF THIS LEASE FOR ANY PURPOSE. IN SUCH EVENT, LESSOR SHALL PAY REASONABLE DAMAGE FOR GROWING CROPS TAKEN, AN AGREED VALUE FOR WORK DONE ON UNPLANTED ACREAGE, AND RENTALS FOR SAID LAND REFUNDED. 2. IT IS UNDERSTOOD AND AGREED THAT THE RIGHTS GRANTED HEREUNDER TO OPERATOR WILL NOT BE EXERCISED IN SUCH A WAY AS TO INTERFERE WITH OR ADVERSELY AFFECT THE USE, OPERATION, MAINTENANCE, OR DEVELOPMENT OF THE AIRPORT. 3. THE OPERATOR WILL INDEMNIFY AND SAVE HARMLESS THE ___________ AIRPORT COMMISSION, THE CITY OF __________ AND THEIR RESPECTIVE EMPLOYEES, AND ALL VENDORS HIRED BY THE OWNER, OR CITY OF _________ FOR AND FROM ALL LIABILITY ARISING FROM OPERATOR’S NEGLIGENCE OR DAMAGES OF ANY NATURE. 4. ALL CROPS SHALL BE NO-TILL PLANTED. 5. ALL CROPLAND SHALL BE SEEDED TO A COVER CROP PRIOR TO OCTOBER 1, _____. OPERATOR SHALL BE RESPONSIBLE FOR ALL COVER CROP SEED AND PLANTING COSTS. 6. FERTILIZER APPLICATION DATES ARE AS FOLLOWS: MARCH 1, ____ TO AUGUST 1, ____. OPERATOR SHALL FOLLOW CURRENT CROP REMOVAL RATES FOR ALL FERTILIZER APPLICATIONS BASED ON THE ESTIMATED YIELD GOAL FOR ALL CROPS. MULTIPLE CROP YEAR FERTILIZER APPLICATIONS ARE NOT ALLOWED. 7. OPERATOR SHALL OBTAIN WRITTEN APPROVAL FROM OWNER BEFORE USING ANY TILLAGE EQUIPMENT DEFINED AS “FULL WIDTH” .

74 Agricultural Operations on Airport Grounds 8. OPERATOR SHALL REPORT HARVEST YIELDS WITHIN TWO WEEKS OF HARVEST AND PROVIDE OWNER WITH DETAILED CROP INPUTS USED/APPLIED ALONG WITH AVERAGE RETAIL PRICE OF SUCH CROP INPUTS. 9. WATERAYS SHALL BE MOWED PRIOR TO JUNE 30, ____ AND AFTER HARVEST. 10. ROADSIDES, FIELD EDGES, AND OTHER AREAS ARE TO BE MOWED AS DIRECTED DURING THE GROWING SEASON AND AFTER HARVEST. 11. ALL NOXIOUS WEEDS SHALL BE CONTROLLED. ALL OTHER WEEDS TO BE REMOVED AS REQUESTED. 12. OPERATOR SHALL PREVENT WOODY AND BRUSH VEGATATION FROM BECOMING ESTABLISHED ALONG ROADSIDES, FIELD EDGES, CONSERVATION STRUCTURES, AND WATERWAYS. 13. ALL CROP CERTIFICATION, CONSERVATION, AND FARM PROGRAM RECORDS SHALL BE MAINTAINED AT USDA’S _______ COUNTY FARM SERVICE AGENCY (FSA) AND NATURAL RECOURCES CONSERVATION SERVICE (NRCS) OFFICES. 14. CROP RESIDUES SHALL NOT BE HARVESTED. 15. NO SEED, FERTILIZER, CHEMICAL, OR OTHER COMMERCIAL ADVERTISING SIGNS ARE TO BE DISPLAYED ON AIRPORT PROPERTY BY LESSEE OR FARM INPUT SUPPLIERS. 16. OPERATOR AGREES TO WORK WITH THE NRCS, AND/OR ANY OTHER REGULATORY GOVERNMENT AGENCY, IN DEVELOPING AND IMPLEMENTING A COMPREHENSIVE NUTRIENT MANAGEMENT PLAN. IN WITNESS WHEREOF, the parties hereto have entered into this Farm Lease and Security Agreement on the date first above written. _______________________________________________________________________________________ Operator: _______________________________________________________________________________________ _______________________________________________________________________________________ By Owner: Date:

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 Agricultural Operations on Airport Grounds
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The increasing need to use airport land for non-aeronautical revenue and decrease operating expenses may generate consideration of on-airport farming operations and agricultural leasing.

The TRB Airport Cooperative Research Program's ACRP Synthesis 117: Agricultural Operations on Airport Grounds compiles literature and practices at airports to initiate and manage agricultural operations on airport grounds.

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