Drought, grasshoppers, wildfire and other natural disasters can unexpectedly impact pasture conditions, leading to forage shortages and financial strain for both landowners and ranchers. These events are often stressful times, and making decisions with a clear head can be difficult. Including well-defined drought or disaster clauses in pasture lease agreements can help mitigate risks and provide clear guidelines for both parties in times of hardship.

Why Include a Drought or Disaster Clause?

A well-structured drought or disaster clause ensures fairness and flexibility when adverse conditions affect grazing capacity. These clauses protect both landowners and tenants by outlining specific actions and responsibilities during droughts, wildfires, floods, or other disasters. Without such provisions, disagreements may arise regarding stocking rates, rental payments, and lease termination.

A well-defined drought or disaster clause allows landowners to prevent overgrazing and long-term pasture degradation, provides ample time for lessees to make alternative plans for animals, and ensures both parties still receive fair compensation. A well thought out drought/disaster plan provides flexibility and adaptability to the lease by offering a structured approach to adjusting stocking rates and payments based on real-time pasture conditions. 

While there is no one-size-fits-all example for leases, the following are a few things to consider when developing a drought/disaster clause for your lease agreement:

1. Definition of Drought or Disaster Conditions

• Clearly define what constitutes a drought or disaster. This could be based on precipitation levels, soil moisture data, or regional drought monitoring systems like the U.S. Drought Monitor. 
• Specify triggers such as a certain number of consecutive weeks without adequate rainfall or an official drought declaration by state or federal agencies.
• If the decision of what defines a drought/disaster is not tied to an objective measure like above, decide who is making the decision on when the clause will be activated. 

2. Stocking Rate Adjustments

• Outline provisions for reducing livestock numbers when forage availability declines.
• Define how reductions should be determined—by mutual agreement, consulting a third-party expert or using forage production data.
• Set a timeline for how these discussions will occur and how much notice should be provided to the tenant if animals need to be removed.

3. Lease Payment Adjustments

• Establish whether rental payments will be adjusted based on grazing capacity.
• Consider a pro-rated payment system where fees decrease if stocking rates must be reduced due to drought.
• Check with Farm Service Agency (FSA), Natural Resource Conservation Service (NRCS), Natural Resource District (NRD), or other similar groups about possible implications adjusting pasture lease payments may have on disaster program eligibility and conservation programs.

4. Alternative Forage or Water Solutions

• Address whether supplemental feeding or alternative water sources can be used to maintain livestock.
• Clarify if temporary grazing on adjacent or alternative properties is an option.
• If supplemental feeding is used, consider designating a sacrifice area to reduce potential overgrazing of the entire pasture area. 
• If outside hay is being fed, remember this may be a source of seed for noxious or other problematic weedy species.  If possible, use locally sourced hay to limit risks. Feed hay in a specific area to reduce possible spread and allow for better monitoring of the area in the future.

5. Early Lease Termination or Suspension

• Specify conditions under which a lease can be suspended or terminated without penalty if grazing becomes unviable.
• Include a notification period and process for ending the lease early.

6. Disaster Recovery Assistance

• Mention whether the leaseholder can apply for federal or state disaster assistance programs and how lease terms might be adjusted accordingly.
• Check with Farm Service Agency (FSA), Natural Resource Conservation Service (NRCS), Natural Resource District (NRD), or other similar groups about possible implications adjusting pasture lease payments may have on disaster program eligibility and conservation programs.
• Keep clear records of any adjustments that may be required for disaster programs or to adjust terms of conservation projects.

Conclusion

Including a drought/disaster clause in a pasture lease is a proactive step that benefits both landowners and tenants. By setting clear expectations and providing a framework for decision-making during adverse conditions, these clauses contribute to more resilient grazing agreements. By incorporating flexible terms into leases both parties can ensure long-term sustainability for both land and livestock.

Before finalizing a lease agreement, it’s advisable to consult legal professionals specializing in agricultural contracts to ensure that all necessary provisions are in place.

For more information on drafting effective grazing lease agreements, visit University of Nebraska-Lincoln’s BeefWatch or explore additional guidance at AgLease101.org.

Article written by Ben Beckman & Ryan Benjamin, Nebraska Extension, Livestock Systems Educators.