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Land lease contracts may impact sale or transfer of property

Officials says some land lease agreements might prevent farmers from leaving their land to family members when they die.

Dale Arnold, director of Energy Services for the Ohio Farm Bureau says utility companies present land owners with lease agreements that also spell out how a sale or transfer of the land would be impacted by the agreement.

“We’re seeing in some, but not all solar leases, that if the property is going to be transferred, if it’s going to be sold, if there’s going to be some transaction in regards to that, it’s going to be with us and the terms and conditions are already detailed in the lease,” says Arnold.

Arnold tells Brownfield land owners need to thoroughly research any company that approaches them.

“Does the company have experience in the construction and operation of the facilities they want to put forward on the property and are they going to keep it for a number of years and enter a contract relationship with utilities or are they going to sell it to someone else?” says Arnold.

Arnold says farmers and land owners should consult with attorneys who specialize in land lease contracts before signing any agreement.

Audio: Dale Arnold, Director Energy Services Ohio Farm Bureau Federation