L.C., Here in Texas In drought situations a person is allowed to "Rest" a Ranch, Pasture, given acres for up to 3 yrs without hassle from the Tax Office. As long as there is still sign of Live stock in the past, old Cow Pies,Hay residue, Tracks and the like. The "Rest" will allow grass to reestablish itself and get going again and get the pasture back to where it should be. If you are not at a point to where that will apply in your state then,, "Summer" some Livestock for the shortest period possible to say you had livestock on the place in 2012. You can stipulate #of livestock/acre in a regular yr. In a Drought condition, if it persists, then a declining grazing rate till the livestock must come off in the fall. If the owner fails to honor your rules in the contract, You always hold the option of opening the gate and running the Livestock out in the R.O.W. / Or load them up take them to the Sale Barn and leave them there in HIS name, to get them off your place AND You will be Held Harmless in the hold deal. YOU STIPULATE the Rules here Not the Tenant. Even if it is Free to them and your gain is the Tax classification as AG and not Commercial. Hope this helps. Later, John A.
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