Revenues From the Woodlot: Hunting Lease Opportunities

Hunting continues to be a prominent recreational activity in Ontario.  However, in southern parts of the province, the land available for hunting is disappearing every year due to urban expansion.  As the demand for good hunting lands increase, the opportunities for rural landowners to entertain the option of entering into hunting lease agreements will increase.

Although the idea of hunting leases in Ontario is a relatively new concept, rural landowners in the U.S. have been successfully participating in these types of leases for years.  The concept behind a hunting lease is quite simple.  It is an agreement between a private landowner and a group of hunters who are seeking the right to participate in an activity on a specific tract of private property for a certain time and for a fee.

Why would a landowner consider entering into an agreement of this type?  By entering into an agreement with a responsible group of hunters, the landowner can benefit in a number of ways.  Some of these benefits may include:

• For absentee landowners, the increased presence of activity on the property will assist in reducing trespassing, property damage and theft;
  
  
• In agricultural areas, hunting can help maintain wildlife populations and will reduce the incidence of crop damage;
  
  
• Leases can provide landowners with an alternative source of revenue; and
  
  
• Hunters using the property are able to detect potential problems that the landowner may not be aware of (e.g., insect and disease infestations, flooding problems caused by beavers, trespassing, damaged fences, etc.).

Developing a Lease Agreement

The lease agreement needs to explain all of the rules, responsibilities and restrictions that the lessee and lessor are subject to.  A good agreement will help ensure that there are no misunderstandings between the landowner and hunters at a later date.  It provides protection for both parties.

The following information will highlight some of the basic elements of a lease agreement:

Introduction – list the names and addresses of all the parties participating in the lease – lessor (landowner) and the lessee (hunters). 

Purpose of lease – describe the purpose of the agreement – i.e. the hunter wishes to access the owner’s property for the purpose of legally hunting big game, small game and or waterfowl.

Property description – you need to include a clear description of the property in the agreement – list the lot, concession, township and county or region and attach a map of the property, delineating its boundaries, to the agreement.

Terms of the lease – the starting and ending dates of the lease must be clearly defined.

Compensation – state the amount and payment dates for the right to access the property during the term of the agreement.

Conditions of lease – outline what you will allow the lessee to do on your land and what you as the landowner will provide.  The following list includes examples of specific requirements that you may want to include in a lease agreement with hunters.

• The landowner will permit only the hunter(s) listed in the lease to hunt the property;
  
  
• The lessee shall only allow those hunter(s) listed in the agreement to hunt the property;
  
  
• Where “off-road” vehicles (ATVs) can be used (e.g., only on maintained trails and roads);
  
  
• Location of hunting blinds, camps and tree stands;
  
  
• Removal dates for decoys, tree stands, blinds and camps;
  
  
• List what improvements the lessee is allowed to carry out on the property (e.g., trails, establish camp sites, etc.);
  
  
• Respect and care for the property (e.g., fires, litter, cutting of trees);
  
  
• Specific days when hunting is not allowed;
  
  
• Liability of the lessee for any damage (e.g., roads, fences, structures, livestock);
  
  
• Describe (if any) what you have agreed to do in providing any improvements to the property for the lessee (e.g., upgrade road network, etc.).

Remedies for breach of lease – describe the conditions that would allow you to cancel the agreement and the process that would be used.  It should also clearly state any conditions for the loss of any rental payment.

Assignment clause – you may want to stipulate that the lessee shall not sublease the property without first seeking the landowner’s permission.

Insurance and indemnity – some liability will be incurred when you enter into a lease agreement, and the lessee should have general liability insurance in place.  You need to ensure that you have taken the proper precautions in order protect your own interests, and it is recommended that you work with a lawyer while preparing this section of the agreement.

Closing – the agreement needs to be signed by both parties – the landowner and hunter (signatures of all the hunters participating in the agreement).   You should also ensure that the signing of the agreement is witnessed and dated.

Note – after drafting your agreement it is recommended that before it is signed you consult a lawyer to review the document to ensure it falls within the law and meets your specific objectives.

Types of Leases

The most common type of lease is an annual agreement.  As the name implies, under this type of agreement the lessee has been conveyed the right to hunting privileges on the property year-round.  A second type of lease that you may want to consider is a seasonal lease.  This involves leasing the hunting rights on your property for a particular hunting season (e.g., for deer or moose), for a few weeks or for a few days.

Compensation

The going rate or the amount of compensation a landowner will receive will depend on several factors – quality of habitat and the quantity of game, size of property, market demand for hunting areas in the surrounding locale, length of lease, number of hunters, etc.

To establish a lease rate, one option you may want to consider using is a tender bid process.  In most cases, a competitive bidding process will provide you with the going rate in your locale.  Another option is to negotiate a fee using the cost of your property taxes as a starting point.

In eastern Ontario, some landowners have been able to fix a fee that will cover their annual taxes, while others have accepted other forms of compensation as payment.  In some cases, leases are provided in return for services or other goods.  For example, you may have the lessee post and maintain notices prohibiting trespass on the property, undertake projects that will enhance wildlife habitat, maintain trails or roads on the property or provide another service or goods as a form of payment.

Other Considerations

• Although there is no set property size, landowners with smaller woodlots may want to contact adjacent landowners to see if they would consider entering into a cooperative lease agreement.  A larger, more diverse tract of land may attract higher interest from more hunting groups and may result in a higher lease price. 
  
  
• Landowners should review their current insurance policy to see if it provides adequate coverage under a leasing situation.  If not, you may be able to add a rider to your existing home or farm policy.   If you have any unanswered questions concerning liability issues, you should contact your insurance agent.
  
  
• Selecting the right lessee is important.  Carefully interview and screen potential lessees because who leases your land may be more important than the revenue generated.

Sample Agreements

There are a number of samples agreement available from a number of sources.  Here are three examples from the United States:

Leasing Hunting Opportunities for Oklahoma Landowners, F-5032, Oklahoma Cooperative Extension Service, http://pods.dasnr.okstate.edu/docushare/dsweb/Get/Rendition-5278/unknown

Hunting Leases and Permits, ANR-541, Alabama Cooperative Extension System, http://www.aces.edu/pubs/docs/A/ANR-0541/#ii

Sample Short-Term Hunting Lease, Alabama Cooperative Extension System, http://www.aces.edu/pubs/docs/A/ANR-0541/#ii

One Last Word!

Remember, when using any sample agreement, it is important to keep in mind that these are generic documents.  It is easy to copy the agreement word for word, thinking it will cover all your needs; however, in many cases it may be inadequate.  Use a sample agreement only as a general guide, and it should be customized to suit your needs.  As previously noted, consult a lawyer to review the agreement to ensure you have covered all the bases.

This article was featured in a past edition of the S&W Report, the newsletter of the Ontario Woodlot Association. 

© Ontario Woodlot Association, 2010