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What it takes to protect certified organic status when land changes operators, from lease language and certification records to the conversations that need to happen well before anyone signs. With Glennis McClure and Carla McCullough Dittman. Find this episode on your favorite platform here.
Interest in organic agricultural production continues to grow across many regions of the United States. As demand for organically produced crops increases, landowners and tenants alike are exploring opportunities to lease land for organic production systems. However, organic leases often involve additional considerations beyond those found in conventional agricultural agreements.
A successful lease arrangement begins with communication, clearly defined expectations, and a written agreement that outlines responsibilities for both parties. Written leases help reduce misunderstandings, establish long-term goals, and provide guidance if disagreements arise.
Communication and Shared Goals Matter
One of the most important aspects of any lease agreement is communication between the landowner and tenant. Organic production systems often require greater management intensity, additional labor, and long-term investments in soil health and fertility. Because of this, both parties should discuss their production goals, expectations for land stewardship, and long-term plans before entering into an agreement.
Landowners may wish to discuss:
- Conservation expectations
- Soil fertility management
- Weed control practices
- Use of manure or compost
- Infrastructure maintenance
- Water access and irrigation
- Livestock grazing on cover crops or on crop stubble after harvest
- Long-term productivity goals
Including conservation or soil stewardship clauses within a lease agreement may help protect the long-term productivity and value of the land.
Organic Transition Can Present Challenges
Transitioning conventional land to certified organic production generally requires a three-year transition period before crops may be marketed as certified organic. During this transition period, producers may experience lower yields, increased management requirements, or greater production uncertainty while not yet receiving organic price premiums.
Organic production systems frequently require additional field operations such as cultivation, hoeing, compost application, and mechanical weed control. These activities often increase labor, machinery use, fuel costs, and management time compared to conventional production systems. Organic producers may also incur additional expenses related to certification paperwork, recordkeeping, and approved fertility or pest management inputs.
Because of these additional risks and costs, lease agreements may need adjustments that fairly reflect each party’s contributions, responsibilities, and risk exposure.
In addition to production considerations, lease agreements should clearly address organic certification requirements and long-term stewardship expectations. While organic certification requires a minimum 36-month transition period without the use of prohibited synthetic fertilizers or pesticides, the organic status is tied to the land itself rather than the individual producer. As a result, landowners who wish to preserve the organic status of their land should carefully evaluate tenants and ensure that lease agreements clearly outline organic compliance responsibilities, including communications regarding the organic certifier and access to records.
Lease agreements may specify that only materials approved under the USDA National Organic Program (NOP) standards are permitted for use on the property. Agreements may also address requirements for buffer zone management, organic certification recordkeeping, acceptable crop rotation practices, and the use of manure or compost that complies with organic standards. Some leases may also include provisions outlining corrective actions or financial penalties if organic standards are violated.
Clearly outlining these expectations within a written lease agreement may help protect the long-term organic integrity, productivity, and value of the land.
Lease Structure and Cost Sharing
Several lease arrangements may work for organic production, including:
- Cash leases
- Flexible cash leases
- Crop-share leases
- Multi-year lease agreements
In crop-share agreements, the traditional division of expenses and returns may need modification to account for additional organic production costs. Tenants may incur higher expenses related to cultivation, certification paperwork, organic fertility amendments, and additional machinery operations.
Lease agreements may also address:
- Organic certification costs
- Seed expenses
- Custom field operations
- Grain storage
- Marketing costs
- Soil amendments such as lime or compost
In some situations, landowners may assist with long-term soil improvements, while tenants handle annual operating expenses.
According to Iowa State University Extension and Outreach, lease terms during the organic transition period may sometimes be adjusted to compensate tenants for increased production risk before organic premiums are available. Alternatively, multi-year lease arrangements may provide tenants with greater security while assuming transition-related risks.
Evaluating Potential Tenants
Landowners considering organic lease arrangements should evaluate potential tenants carefully. Important considerations may include:
- Organic production experience
- Financial stability
- Long-term commitment to soil stewardship
- Communication skills
- Equipment and labor availability
- Understanding of certification requirements
Existing infrastructure, such as barns, grain storage, fences, machine sheds, and water access, may also affect lease negotiations and rental rates.
Selecting the Right Landowner
While much attention is often given to evaluating potential tenants, selecting the right landowner is also an important consideration in successful organic lease arrangements.
Factors tenants may wish to evaluate when considering a lease arrangement include:
- Willingness of the landowner to support long-term soil health and conservation practices
- Understanding of organic production requirements and certification standards
- Flexibility regarding crop rotations, cover crops, and conservation practices
- Interest in maintaining open and regular communication
- Lease length and long-term security of access to the land
- Expectations regarding infrastructure maintenance and improvements
- Willingness to address transition-period challenges and production risks
- Previous land management history and use of prohibited substances
Final Thoughts
Leasing land for organic agricultural production can provide opportunities for both landowners and tenants while supporting sustainable agricultural practices and local food systems. However, successful agreements require careful planning, realistic expectations, and clear communication.
Written lease agreements that clearly define responsibilities, production practices, conservation goals, and cost-sharing arrangements can help create mutually beneficial long-term relationships.
References & Resources
- Agricultural Marketing Service, U.S. Department of Agriculture, National Organic Program.
- Iowa State University Extension and Outreach. Adapting Crop Share Agreements for Sustainable and Organic Agriculture.
Iowa State University Extension and Outreach - University of Wisconsin Division of Extension. Farm Management Resources. Looking to sell, rent, or buy organic land?
Sustainable Agriculture Research and Education (SARE). Adapting Crop Share Agreements for Sustainable and Organic Agriculture. - Land For Good. Farmland access and leasing resources.
Land For Good - Ag Lease 101 https://aglease101.org/
Portions of this educational material were drafted with assistance from ChatGPT (OpenAI). Authors reviewed, edited, and verified all content and references prior to publication.
