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About – Agricultural Leasing

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Address:
310 Old Santa Fe Trail,
Santa Fe NM 87501

Phone:
505-827-5760

Agricultural Leasing

General Information and Overview

Surface Resource Division

New Mexico State Land Office

Santa Fe, NM

 

Agricultural Leasing

Agricultural leases on state trust land co-exist with other types of leases such as renewable energy projects, oil and gas development, and business leases. The Agricultural Leasing Bureau manages over 3,500 leases on state trust land with 600-900 leases requiring renewals annually.

The agricultural leasing bureau issues leases for livestock grazing and cropland production on 8.9 million acres. Fees for grazing leases are established annually using a grazing fee formula managed by the State Land Office and verified by New Mexico State University. The fee formula takes into account a variety of factors including current private grazing land lease rates by western livestock ranchers, beef cattle prices, and the cost of livestock production. The formula was implemented in 1988 to ensure that fair market values are assessed for grazing.

Grazing Lease Formula

 

The Grazing Lease Annual Rental Fee Formula is:

Base Value x Carrying Capacity x Acreage x Economical Variable Index (EVI)= Rental Fee

Agricultural Lease Term Series

The Agricultural Leasing Bureau manages over 3,500 leases on state trust land with 600-900 leases requiring renewals annually.
Leases are grouped into series determining the time for renewal.
Below is a listing of the series codes and upcoming lease term dates.

GM           2024-2029
G0             2025-2030
GR             2026-2031
GS             2027-2032
GT             2028-2033
GM           2029-2034

Competitive Bid – What is it?

COMPETITIVE BID DURING AGRICULTURAL LEASE RENEWAL

Agricultural leases have a maximum term of 5 years. At the end of the lease term, during the renewal cycle the lease can be competitively bid upon.

Other Agricultural Transactions
  • Assignment of Agricultural lease (S-37) form – Used to transfer or change the lessee of record on an active contract.
  • Improvement application– used to request authorization for any improvements to the land. All Agricultural improvements are considered lessee-owned.
    • As of December 1, 2022 a Cultural Properties Protection (CPP) Rule was implemented requesting a cultural properties survey for any surface disturbing activity.
    • Cultural Survey Support Program- The Cultural Survey Support Program (CSSP) will provide appropriate archaeological survey and review services to qualified applicants for surface-disturbing activities on state trust land.
    • Actual Cost Affidavit – used after implementation of improvements to the lease to record the actual cost of said improvements.

Sublease Application– used to request authorization for subletting of leased land. An annual sublease rental is required for any active subleases. Sublease rental is 20% of the base lease rental cost.

Transfers Upon Death
  • To record the passing of a lessee, our office requires an original or certified copy of the death certificate. If you would like any documents returned, please include a note requesting their return.
  • If the estate is probated, we will need certified copies of the letters testamentary, letters of administration, or similar documentation that establishes the personal representative. This allows the representative to act on behalf of the deceased.
  • The agricultural lease can remain on record with the state land office in the name of the estate until probate or a judicial determination of heirship is completed. At that time our office requests an assignment of the lease into an individual or valid entity.
  • If the estate is not probated, affidavits are available for requesting an amendment to the lease to be transferred to the surviving heirs.
  • Section 19.2.8.16 – TRANSFER OF LEASE UPON LESSEE’S DEATH.pdf
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Lease Sale Process

The State Land Office offers tracts for oil and gas leasing the third Tuesday of every month.  Tracts are leased through a competitive sealed or oral bid process.  To bid, you must have an OGRID number; if you do not have one; contact Veronica Gonzales at (505) 476-4538. Sealed bids must be submitted with payment prior to the lease sale; oral bidding is conducted at the lease sale.  Full directions and the bid application form can be found in the monthly lease sale notice.

Anyone can nominate available tracts for offer at the lease sale.  To nominate, send an email to Allison Marks, Director, at amarks@nmslo.gov.  To find out which tracts are available, use the Oil and Gas Interactive Map.

SPECIAL NOTICE REGARDING CCAA

Lease Sale Results