CCDF2026-01 - Agricultural Lease Template.pdf

AGRICULTURAL LAND LEASE

THIS AGRICULTURAL LAND LEASE (this “Lease”) is entered into this ___ day of ______ , 2026, by and between the COUNTY COMMISSIONERS OF CAROLINE COUNTY, a body politic and corporate and a political subdivision of the State of Maryland (“Lessor”), and ___________________________ (“Lessee”).

WITNESSETH:

WHEREAS, the Lessor desires to lease certain land to Lessee to use for agricultural purposes; and

WHEREAS, the parties desire to enhance the land, conserve its resources, and maintain the land in a high state of cultivation; and

NOW, THEREFORE, and in consideration of the terms, conditions, covenants, and promises herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto covenant and agree as follows:

Section I. PROPERTY TO BE LEASED:

(a) The Lessor hereby leases to the Lessee the following described property, to occupy and use solely for agricultural purposes:

All that tillable land stipulated by the parties to contain approximately 60 acres +/-, at ‘‘Mid-Shore Regional Technology and Business Park”, f/k/a “Hayman Farm”, located at 23865 Race Track Road, Ridgely, in Caroline County, Maryland; Deed Ref. Liber _____, Folio ____ (the “Property”).

(b) Lessee acknowledges the Property is currently for sale and is ultimately intended for industrial and economic development.

Lessor reserves the right to change the acreage available for use by the Lessee under this Lease if all or part of the parcel is sold.

Upon transfer of ownership, Lessor agrees to reimburse Lessee reasonable and customary loss of income for crops currently established on sold acreage.

(c) The parties agree that the aggregate number of acres stipulated upon which Lessee is obligated to pay rent for the use thereof is sixty (60) acres.

Section II. TERM OF LEASE:

For Reference ONLY. Do not submit with bid.

- 2 -2

The term of the Lease will be for an approximate two (2) year term beginning on March 1, 2026, and ending on December 31, 2027. In no event shall this Lease be extended beyond February 28, 2028, for purposes of harvesting crops.

Section III. RENEWAL:

This Lease may be renewed for two (2) successive one (1) year terms only in writing signed by the Lessor and Lessee. There is no obligation, expressed or implied, on the part of the Lessor to renew or agree to renew this Lease.

Section IV. RENT:

For the use of the Property, Lessee agrees to pay Lessor a cash rent of $ _________ (based upon a rate of $ _____/acre x 60 acres), which rent is due and payable annually on or before the first day of June.

Lessee acknowledges that the rent stated herein is stated in gross dollars as to the Property, irrespective of the number of acres planted, and that the per acre rental rate is for informational purposes only.

Section V. DUTIES OF LESSEE:

(a) Lessee shall be responsible for controlling Johnsongrass, thistles, and other noxious weeds on the premises in compliance with Title 9, Subtitle 4 of the Agriculture Article of the Annotated Code of Maryland (as amended) and other applicable laws and regulations. If there is Johnsongrass on the Property, a plan of compliance shall be filed with the Maryland Department of Agriculture and a copy sent to the Lessor.

(b) Lessee shall farm the Property in a husband-like manner and in accordance with the customary farming practices for Caroline County, Maryland, and shall not use the land for any other purposes. Lessee shall not raise and/or graze livestock or poultry on the Property.

(c) Lessee shall permit employees of the Lessor to enter upon the Property in pursuit of their assigned duties and to inspect the Property.

- 3 -

(d) Lessee shall surrender the Property at the conclusion of this Lease with a suitable ground cover approved in advance by Lessor.

(e) Lessee shall maintain the “pH” and fertility levels of the soil at their current levels. During the term of this Lease, Lessee shall complete an annual soil test and submit a copy of the results to the Lessor immediately upon receipt of the results.

The above shall be conducted in accordance with the procedures prescribed by the University of Maryland, Maryland Cooperative Extension.

(f) Lessee shall furnish all labor and equipment, and Lessee shall also provide at Lessee’s expense, all seed, fertilizer, herbicides, and lime. Lessee shall also keep the ditches on the Property clear and maintain the fences, if any.

(g) Lessee shall not remove any fencing, building, structures, boundary markers, soil, or trees, or alter or damage roads, ditching, hedgerows, or commit any waste on the Property without written consent of the Lessor.

(h) This Lease does not convey hunting rights. Lessee acknowledges and agrees that the Lessor, in its sole discretion, may sell or grant hunting rights on the Property in the future by a process to be determined in the discretion of the Lessor.

Lessee shall be eligible to obtain hunting rights through such process. Should the Lessee determine that the exercise of hunting rights on the Property interferes with Lessee’s operations, Lessee may terminate the Lease at the end of any year. Nothing in this Lease shall prevent the Lessee from exercising any rights with respect to seeking damages from third parties hunting on the Property, whether by permission of the Lessor or otherwise.

(i) Lessee will pay for all crop inputs required for production of crops.

(j) Lessee is allowed to work the ground at any time of day or night as may be necessary for timely production of crops.

(k) Lessee agrees to use the property for crops considered to be agronomic for purposes of maintaining the tax status of the land as farmland.

(l) Lessee shall procure and keep in full force and effect at all times during the term of this Lease, all necessary workman’s

- 4 -4 compensation insurance. Lessee shall provide Lessor with a copy of an insurance liability policy for Lessee’s farming operation naming the Lessor as an additional insured in the minimum amount of $1,000,000.00 per occurrence for the term of this Lease. A certificate of insurance coverage must be provided to the Lessor at the time Lessee executes and delivers this Lease. Any lapse in coverage during the term of this Lease shall result in immediate termination of this Lease in the discretion of the Lessor.

Section VI. DUTIES OF LESSOR:

(a) Lessor warrants that Lessee shall have peaceful and undisturbed possession of the tillable land in accordance with this Lease.

(b) Lessor represents that the subject property is exempt from all real property taxes.

(c) Lessor agrees to allow Lessee to park farm equipment, such as tractors, trucks, combines, planters, disks, trailers, plows, spreaders, cultivators, packers, sprayers, etc., as required for production of crops. Such permitted use is not long-term storage, but only for periods during planting harvesting, and cultivation of crops. Lessor shall not be liable for missing or damaged equipment.

(d) Lessor agrees to allow Lessee the use of private lanes and farm entrances as required to have access to the Property.

(e) Lessor waives rights to any government crop assistance, disaster assistance, crop insurance payments and/or subsidy payments and assigns all crop benefits to the Lessee. Long-term set aside agreements are not included in this waiver.

Section VII. DEFAULT BY LESSEE:

If the Lessor determines that the Lessee is in violation of any of the terms and conditions of this Lease, then Lessor shall send written notice of such violation to Lessee by registered or certified mail at the above address. Should Lessee fail to correct any violation within fourteen (14) days from the receipt of such notice, Lessor will then have the right to immediately terminate this Lease. Upon such termination Lessor shall be entitled to immediate possession of the Property and any crops remaining thereon, with no obligation to reimburse the Lessee therefor.

- 5 -

Rent shall be adjusted on a pro rata basis to the date of termination.

Section VIII. LIABILITY:

Lessor shall not be responsible for supervising Lessee’s farming activities or for any other acts done or omitted by Lessee in connection with this Lease. Further, Lessee hereby agrees to indemnify and hold harmless the Lessor and its elected and appointed officials, employees, and agents from and against any losses, claims, damages, liabilities, costs, judgments, fines, amounts paid on account thereof (whether in settlement or otherwise), expenses, and fees (collectively, a “claim”) arising out of, or caused by Lessee’s use and occupancy of the Property.

Section IX. GENERAL PROVISIONS:

(a) Lessee shall not assign this Lease or sublet the Property or any portion thereof, without the prior written consent of Lessor.

(b) Lessee shall not make any alterations or additions to the

Property without the prior written consent of Lessor. Any additions that may be authorized by Lessor shall be at the Lessee’s expense.

(c) This Lease contains the final and entire agreement between the parties, and neither they nor their agents shall be bound by any terms, conditions or representations not herein written, unless subsequently agreed to in writing and signed by all parties hereto. This Lease may be executed in counterparts, each of which shall be deemed and considered an original.

(d) This Lease is binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.

(e) All notices required or provided under this Lease shall be in writing and shall be delivered personally or shall be sent by prepaid or certified mail, addressed as set forth below:

Caroline County Lessee

Caroline County Commissioners

109 Market Street Denton, MD 21629

- 6 -6

(f) Governing Law and Venue: This Lease is governed by the laws of Maryland and any litigation arising from this Lease shall be brought in a court of competent jurisdiction in Caroline County.

(g) If any provision of this Lease shall be held to be invalid or unenforceable, the validity and enforceability of the remaining provisions shall not be affected thereby.

(h) No Waiver: In the event that either party fails to enforce any obligation of the other party under this Lease when performance is due, such delay or failure to enforce shall not constitute a waiver of its right to seek full performance at any future time.

IN WITNESS WHEREOF, in duplicate originals, the parties hereto have executed this Agricultural Land Lease as of the day and year first above written.

ATTEST: LESSOR:

COUNTY COMMISSIONERS OF

CAROLINE COUNTY, MARYLAND

_______________________ By: _____________________ Jennifer Reibly J. Travis Breeding, President Public Information Officer

WITNESS LESSEE:

Approved for Legal Sufficiency:

Jesse Hammock, Attorney for Caroline County