The Agriculture and Grazing Management Program is responsible for leasing and managing approximately 9,000 agreements for crop and rangeland uses on 4.76 million acres of school trust lands throughout the state. Administrative staff and specialists in the department's Helena office and staff in field offices statewide manage the program.
Agricultural and Grazing Lands
The surface leasing program maintains the Ag and grazing lease agreements. Leases are issued for a 10 year lease term approximately 1000 leases renew each year. Maintaining leases also includes: processing assignments, subleases, pasturing and custom farming agreements.
Currently 2,800 agreements cover agricultural use of state trust lands and Approximately 8,100 agreements are grazing. Crops Raised on the lands are: Small Grains and hay. Irrigated crops: grain crops, corn, sugar beets, potatoes, Peas, lentils, garbanzo beans, canola, safflower, alfalfa seed, and native seed
- 575,000 acres are agricultural a majority are 25% crop share set by statute; and cash per acre rentals.
- 4.1 million, acres of classified grazing, and forest lands with an estimated carrying capacity of 990,000 animal-unit-months (AUMs) a minimum rental rate. Rate is a multiplier set by the Land Board and the average weighted price of beef cattle sold in Montana during the previous year.
- State Trust Land receives revenue from the Farm Service Agency (USDA) from the Conservation Reserve Program (CRP).
12.01 - 12.12: Model Farm-In & Farm-out Agreements & Model Deeds of Assignment and Assumption
The Model Farm-in Agreement (Minerals) is intended to be used as a stand alone agreement in conjunction with the Minerals Exploration JVA - Two Party with Farmin Provisions . It assumes that the Owner owns 100% of the Tenements and is farming out all or part of the area of the Tenements. To earn its interest in the Tenements, the Acquirer is paying all of the exploration costs, and (possibly) refunding past Expenditure, during the Earning Period.
This Model Farmout Agreements, in Single Party and Multi-Party versions, are agreements which are intended to be used in conjunction with the Minerals Exploration JVA - Three Party . They assume that there is an existing Joint Venture Agreement covering all of the Tenements and one (or more) of the Joint Venturers is farming out all or part of its Joint Venture Interest. To earn its interest in the Joint Venture, the Acquirer is funding the Owner’s costs during the Earning Period and (possibly) refunding past Expenditure, including the Tenements.
In the Multi-Party version, there is provision for a change in the Managership of the Joint Venture. The Farmout Agreement can also be used as the basis for a Notice of Offer for pre-emption purposes under the Joint Venture Agreement.
There are also Model Alternative and Optional Clauses which are tailored to fit seamlessly into a basic Model, that can be used as additional or alternative clauses with each Model, as appropriate.
These Model Agreements are drafted as ancillary documents to the Mining JVAs . They can be used with minimal amendment with an Oil & Gas Joint Operating Agreement.
The Model Deeds of Assignment and Assumption effect the formal transfer of a Joint Venture Interest under a Farmin or Farmout Agreement, once the interest is earned or sold. The Model Deeds are intended to be used in conjunction with, and as a scheduled annexure to, the appropriate AMPLA Model Farm-in or Farmout Agreement (Minerals). The Deed may also be used in conjunction with a Sale Agreement of a Joint Venture Interest, with appropriate modifications. These Model Deeds can be used with minimal amendment with an Oil & Gas Farmin or Farmout Agreement.
Impact of Legislative Changes
12.01: Model Farm-in Agreement (Minerals)
12.02: Model Farmout Agreement (Minerals) (Multi-Party)
12.03: Model Farmout Agreement (Minerals) (Single-Party)
12.04: Model Farm-in & Farmout Agreements (Minerals) - Optional Clauses
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*Note: No Exposure Draft of the Model Farm-in & Farmout Agreements (Minerals) - Optional Clauses was published.