INDIANAPOLIS – The Indiana Farm Bureau (INFB) will host a virtual workshop in late June designed to help farmers and landowners understand agricultural contracts and leases.

The workshop is 9 a.m.-12:15 p.m. ET June 27. Registration is required and is open through June 25. The program is free for INFB members and $50 for non-members.

“INFB receives calls from members dealing with contract issues, so we felt Indiana farmers would benefit from a broadening of their understanding of the contracting basics and types of contracts and leases,” Mark Thornburg, INFB executive director of legal affairs, told Farm World. “The program is aimed at farmers, landowners and ag stakeholders who can benefit from broadening their understanding of contracts and leases. Contracts play a key role in production agriculture.”

Indiana attorneys can receive 3.3 hours of CLE, or continuing legal education, credit.

Examples of ag contracts include contracts to secure the production of agricultural products like livestock, fruits, vegetables or other ag commodities, he said. The most common type of agricultural lease is the lease of farmland to produce a crop, Thornburg added.

In addition, farmers and landowners have seen an increase in opportunities for renewable energy leases, he noted.

Thornburg said INFB often gets questions about leases and ag contracts primarily due to the prevalence of contracts in production agriculture. This is the first time INFB has offered such a workshop. 

“This new program will focus on the process of agricultural contracts and leases, providing attendees with a better understanding of contracting basics, types of agricultural production contracts, oral leases, and alternative energy leases to help farmers and landlords,” Thornburg said. “We hope they walk away feeling more educated and better prepared when dealing with a farmland transaction.”

Some of the common mistakes landowners and farmers make in dealing with leases and ag contracts include not fully comprehending the terms and conditions of the contract they sign, Thornburg said. They also may not engage an attorney knowledgeable in the subject matter to review the contract on their behalf.

“Make sure you fully comprehend the terms and conditions of the contract,” he said. “Additionally, make sure the contract accurately reflects the agreement between the parties and the allocation of risk. Usually, the best way to accomplish this is by engaging an attorney to help in this process.”

As of the end of May, more than 100 people had registered for the workshop, Thornburg said, adding INFB is very pleased with the interest.

“Farmers, landlords, and attorneys alike should attend this workshop because misunderstanding a contract term or failing to allocate risk can be a costly mistake for the involved parties,” he pointed out. “Understanding and executing agricultural contracts can better secure the investments made to a farming operation and provide clarity of obligations to all parties.”

The workshop is sponsored by the Indiana Agricultural Law Foundation. To register, visit www.infb.org/events.