Farmland rental agreement
Agricultural Land Lease Agreement: What a Fair One Contains
A clause-by-clause guide to the agreement between a landowner and a farmer, with plain-English sample wording. Sample only: get your agreement checked by a local lawyer.
What should an agricultural land lease agreement contain?
A fair farmland lease names the parties and the exact land (survey numbers), fixes the term, rent and payment dates, lists the crops allowed and who pays for inputs and water, protects the soil, bans sub-letting, states that it creates no tenancy right, and sets out termination, disputes, stamp duty and registration under state law.
Leasing out your land? Send us the draft or your details and we’ll help you structure a fair agreement.
Sample only, not legal advice
The sample wording below is a plain-English starting point, not a ready-made contract. Tenancy, stamp duty and registration rules differ by state. Get the final agreement checked by a local lawyer. Before you choose a lease at all, compare it with the other routes on lease your farmland.
1. Parties
Everyone who owns a share of the land should sign as lessor, or authorise one person in writing. A lease signed by only one co-owner is a common source of disputes.
- Full names, parents’ names, addresses and ID numbers of the owner(s) and the lessee
- If the lessee is an FPO or company: its registered name, number and the authorised signatory
- Who will act for the owner day to day (if anyone)
This agreement is made on [date] between [owner name(s)], of [address] (the “Owner”), and [lessee name], of [address] (the “Lessee”).
2. Land details
Describe the land so precisely that no one can argue about which field, how much of it, or what came with it.
- Village, tehsil, district and state
- Khasra / survey / gat number(s) and area of each, as in the record of rights
- Boundaries, and a sketch or map attached and signed
- What is included: borewell, pump, electricity connection, shed, trees, fencing
The Owner leases to the Lessee the agricultural land at survey no. [__], village [__], tehsil [__], district [__], measuring [__] acres, shown on the attached map, together with [borewell / pump / shed], and nothing else.
3. Term
A fixed start and end date, tied to crop seasons, is the owner’s main protection. Avoid open-ended leases.
- Start and end dates (e.g. the start of kharif to the end of rabi)
- Whether it can be renewed, and only by a new written agreement
- What happens to a standing crop at the end of the term
The lease runs from [date] to [date]. It ends automatically on that date unless both parties sign a written renewal. The Lessee will harvest and remove all crops before the end date.
4. Rent and escalation
State the amount, how and when it is paid, and any yearly increase. Paying through a bank creates a record for both sides.
- Cash rent per acre per year or per season, or a share of the produce (say how it is measured)
- Due dates, and paid in advance or after harvest
- Yearly increase, if any, as a fixed percentage
- Payment by bank transfer, with receipts
The Lessee will pay rent of ₹[__] per acre per year, in [one / two] instalments on [dates], by bank transfer to the Owner’s account. The rent will increase by [__]% each year on renewal.
5. Crops and use allowed
The land is for farming only. List what may be grown and what is not allowed.
- Crops or crop types allowed, and any not allowed (e.g. sugarcane on a short lease)
- Farm use only: no brick kilns, no soil or sand removal, no building, no felling of trees
- Any structures (polyhouse, shed) only with written consent, and who owns them at the end
The Lessee will use the land only for growing [crops] and allied farm activities. The Lessee will not build any permanent structure, remove soil, fell trees or use the land for any non-farm purpose without the Owner’s written consent.
6. Inputs, water and power
Say who pays for what, so no one is surprised by a bill.
- Seed, fertiliser, pesticide and labour (usually the lessee)
- Electricity bills for the borewell, canal water charges, diesel
- Repairs to the pump, pipes and fencing
- Land revenue and cess (usually the owner)
The Lessee will pay for all seed, fertiliser, labour, electricity and water charges during the lease. The Owner will pay land revenue and cess. Repairs to the [pump / borewell] costing more than ₹[__] will be agreed in writing first.
7. Soil care
A lessee on a short lease may be tempted to mine the soil. A soil-care clause protects the land’s future value.
- No stubble burning; follow good farming practice
- Keep bunds, drains and field channels in order
- Optional: a soil test at the start and at the end
The Lessee will farm the land with care, will not burn crop residue, and will keep bunds, drains and channels in good order. The land will be returned in the same condition, apart from normal wear and tear.
8. Insurance and crop loss
The crop belongs to the lessee, so crop risk normally sits with the lessee. Say whether rent is reduced if a notified calamity destroys the crop.
- The lessee may insure the crop under PMFBY: tenant farmers and sharecroppers growing notified crops in notified areas are eligible, with the lease agreement or documents their state allows
- Whether rent is due in full, reduced or deferred after a crop loss
- Who gets any insurance claim (the lessee, as the cultivator)
The Lessee may insure the crops at its own cost and will receive any claim. If [a notified natural calamity] destroys more than [__]% of the crop, the rent for that season will be [reduced to __ / deferred to __].
Source: Pradhan Mantri Fasal Bima Yojana operational guidelines, as published by state agriculture departments (e.g. Government of Assam).
9. No sub-letting or mortgage
The owner chose this lessee. Someone else farming the land, or a loan against it, should need the owner’s written consent.
- No sub-lease, partnership or transfer of the lease without written consent
- No mortgage or charge on the land
- The lessee may borrow against the crop, not the land
The Lessee will not sub-let, assign or part with possession of the land, or mortgage or create any charge on it. The Lessee may borrow against the crop only.
10. No tenancy right or possession claim
This is the clause owners care about most. It states plainly that the lease gives the lessee only the right to farm for the term, and that the land returns to the owner at the end. How far it protects you depends on your state’s law.
- The lease creates no tenancy, occupancy, ownership or other right in the land
- The lessee will not seek to be recorded in the record of rights
- Possession returns to the owner on the end date, without any further notice
This agreement gives the Lessee only the right to cultivate the land for the term. It does not create any tenancy, occupancy, ownership or other right or interest in the land. The Lessee will not apply to be entered in the record of rights, and will hand back vacant possession on [end date].
This mirrors the Model Agricultural Land Leasing Act, 2016 (NITI Aayog), under which a lease creates no protected tenancy right, is not entered in the record of rights, and the land automatically reverts to the owner at the end of the term. The model law protects you only where your state has enacted it or a similar law.
Not sure your state’s law protects you? Tell us your state and district and we’ll tell you what to check.
11. Termination
Set out when either side may end the lease early, with how much notice.
- Non-payment of rent after a grace period
- Use of the land for anything not allowed, sub-letting or damage
- The lessee’s right to surrender with notice, and what happens to a standing crop
- What happens if a party dies (the lease is personal to the lessee)
The Owner may end this agreement by [__] days’ written notice if rent is unpaid for [__] months after the due date, or if the Lessee breaks clauses 5, 7 or 9. The Lessee may surrender the land by [__] days’ notice after harvest.
The model law lists non-payment after a three-month grace period, use for other purposes, sub-leasing and damage to the land as grounds for termination (Source: PRS Legislative Research summary of the Model Agricultural Land Leasing Act, 2016).
12. Disputes
A simple local route first, before anyone goes to court.
- Talk first; then mediation by an agreed person, the gram panchayat or gram sabha
- Then the revenue officer or forum your state’s law names, or arbitration if agreed
The parties will try to settle any dispute by discussion, then by mediation through [name / gram panchayat]. If that fails within [30] days, either party may approach [the authority under state law / an arbitrator].
13. Stamp duty and registration (as per state)
Stamp duty and registration rules are set by each state, and an unregistered or under-stamped lease may be weak evidence later.
- Pay stamp duty at your state’s rate for a lease of that term and rent
- Registration Act, 1908, section 17: a lease of immovable property from year to year, for more than one year, or reserving a yearly rent generally must be registered
- Some states have their own rules for farm leases; the 2016 model law leaves registration to the parties
- Sign in front of two witnesses; each party keeps an original
This agreement is executed on stamp paper of ₹[__] and will be [registered with the Sub-Registrar, [__] / attested by [__]] as required by the law of [state]. It is signed in two originals, one for each party.
Other options
Rather not lease the land?
A lease gives you fixed rent and no farm decisions. If you’d rather keep the crop income, consider managed farming or a company’s contract programme.
Read managed farming for landowners or compare all three routes on lease your farmland safely. Sources used on this page: NITI Aayog, Report of the Expert Committee and Model Law on Agricultural Land Leasing (2016); PRS Legislative Research, Report Summary (May 2016); the Registration Act, 1908; PMFBY operational guidelines as published by state agriculture departments.
FAQ
Questions about farmland lease agreements
Is a farmland lease agreement on stamp paper enough?
Stamp paper pays the duty but is not the same as registration. Under the Registration Act, 1908, a lease from year to year, for more than one year or reserving a yearly rent generally has to be registered, though some states have special rules for farm leases. Ask the local sub-registrar what applies to your lease.
How long should an agricultural lease be?
Long enough for the lessee to plan crops and care for the soil, and short enough that you can review it: many owners start with one crop year and renew in writing. Some states set a minimum term, so check your state’s law.
Can I write the lease in Hindi or my local language?
Yes. The agreement should be in a language both parties read and understand, and both should sign every page. If one party cannot read it, have it read out in front of witnesses and record that.
Does the “no tenancy right” clause fully protect me?
It helps, but a clause cannot override your state’s law. The Model Agricultural Land Leasing Act, 2016 says a lease creates no tenancy right, but it protects you only where your state has adopted it or a similar law. Get a local lawyer to check the draft against your state’s current law.
Can the lessee get crop insurance and a crop loan?
Tenant farmers and sharecroppers growing notified crops in notified areas are eligible under PMFBY, using the lease agreement or other documents their state allows. Banks may lend against the crop; the lessee should not be allowed to borrow against the land itself.
Is this agreement the same as a contract-farming agreement?
No. A lease is between a landowner and the person who farms the land. A contract-farming agreement is between a grower and a buyer of the crop; under the Model Contract Farming Act, 2018 it passes no right in the land to the buyer. The central Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 was repealed in 2021.
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Free download: Farmland Lease Checklist + Sample Clauses (India)
For landowners who don’t farm their land: what to check before you lease it, and sample clauses for a fair written farmland lease. Plain language, not legal advice.