MontanaHB 8069th Legislature, Regular Session (2025)HouseWALLET

Provide cash lease-only bidding for agriculture leases

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 0 costs, 3 mixed.

Lease deadlines, late fees, and reinstatement

For grazing leases, pay the first-year rent when you sign. For leases issued after July 1, 1999, later-year rent is due before March 1; pay after March 1 but by April 1 and you owe $25, miss April 1 and the lease is canceled. For farm leases paid by crop-share or cash, pay in cash by November 15 of the harvest year; pay after Nov 15 and you owe $25, miss Dec 31 and the lease is canceled. The department may give a written extension, but missing the extended date cancels the lease. Any payment after Nov 15 must include the $25 fee. Other state land leases also owe a $25 late fee if you miss a set deadline. At least two weeks before the final date, the department must send a certified warning letter; after cancellation, it must send a notice letter. You can ask to reinstate a canceled lease within 30 days by paying the rent due plus a penalty of at least $500 and no more than three times the annual rent. If not reinstated, the lease is reoffered under competitive rules. All late fees go into the same trust account as that land’s rent.

Higher bid deposits for state leases

When you bid on state grazing land, you must deposit 100% of your annual rent offer. For crop-share farm bids, you must deposit $20 per acre. The department applies the winner’s deposit to the first year’s rent and returns any leftover after year one. Unsuccessful bona fide bidders get deposits back. If you do not sign the lease, or submit a frivolous or forged bid, you lose the deposit; the department sends written reasons. Forfeited deposits go to the proper state land trust.

New cash and crop-share rules for farm leases

Most farm leases must pay the state at least 25% of the crop, or the usual landlord share if higher. For competitive farm leases, you bid dollars per acre and get a cash lease. If that bid equals more than a one-third crop share, it must also guarantee at least $15 per acre each year. After the first 10-year cash term, renewals are on crop-share at no less than 25% or the district’s usual share. The department can set cash rent instead of crop-share when it serves the state, but it must at least equal the value of the usual landlord share. The board can approve a lower share for high-cost crops or methods. If you paid for major irrigation, improved acres renew as a cash lease at no less than $15 per acre. The department also sets a yearly round-bale hay price used in these leases.

Sponsors & Cosponsors

Sponsor

Randyn Gregg
Republican • House

Cosponsors

Josh Kassmier
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 294 • No: 6

House vote • 3/4/2025

Do Concur

Yes: 47 • No: 3

House vote • 3/3/2025

Do Concur

Yes: 47 • No: 3

House vote • 1/23/2025

Do Pass

Yes: 100 • No: 0

House vote • 1/22/2025