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.
• Competitive bidding is an opportunity for NMSLO to generate higher revenue through interested parties’ efforts to obtain the lease.
  • If the lease renewal is completed and turned in before August 1 of the renewing year, the lessee has a chance to match a competitive bid that is placed upon a lease.
  • If the lease renewal is not completed before the August 1^st deadline, the lease will go into a sealed bid process where the lease can be awarded to the highest bidder at the discretion of the commissioner.
  • If a collateral assignment is present on a lease and the lease goes through a competitive bidding process, the lien holder will be notified of all competitive bid proceedings