Custom Farming and Agricultural Service Agreement

What a good one includes

• A highly detailed description of the specific agricultural services to be performed, including tilling, planting, spraying, or harvesting, along with designated acreage boundaries.
• Clear payment terms detailing whether the operator is paid a flat per-acre rate, an hourly rate, or a percentage share of the crop yield.
• An explicit clause stating which party is responsible for purchasing and supplying fuel, seed, fertilizer, and chemical inputs.
• Provisions defining who bears the financial loss in the event of crop failure, severe weather, or natural disasters prior to or during harvest.
• A statement clarifying that the custom operator must provide well-maintained machinery and is solely responsible for any breakdown costs or repair delays.
• Requirements for both parties to maintain active liability insurance, specifically addressing chemical drift damage and property damage.

Common mistakes to avoid

• Relying on vague verbal agreements or simple handshakes, which leaves both parties unprotected when disputes arise over crop quality or payment.
• Failing to specify who is responsible for crop damage caused by improper chemical application or pesticide drift during spraying.
• Neglecting to include a clear weather delay clause, which can lead to legal battles when rain or early freezes prevent timely harvesting.
• Omitting a structured dispute resolution process, forcing parties into expensive litigation rather than using local agricultural arbitration.

Frequently asked questions