This publication outlines the legal and tax considerations of leasing privately owned land. It should not be considered as either an interpretation or complete coverage of the Income Tax Act or the various law effecting land rental arrangements and the Government of Saskatchewan assumes no responsibility towards persons using it as such. All land rental arrangements should be discussed with your farm management agrologist, accountant, tax consultant, or lawyer before they are signed. Revenue Canada will also provide information.
In addition, this publication provides management information and guidelines for the landlord and tenant when negotiating a rental agreement. The landlord and tenant should study the material carefully and prepare a written agreement that suits their individual situation. The agreement should be reviewed by a lawyer, an accountant and a farm management agrologist before completing the final agreement. With longer term agreements both parties should remember that economic conditions are uncertain. For this reason, agreements in excess of three years should provide for a periodic review of the essential terms.