Ariz. Admin. Code § 12-5-702
Current through Register Vol. 30, No. 50, December 13, 2024
Section R12-5-702 - Agricultural LeasesA. Definitions. In this article, terms used herein shall have the meanings as defined in A.R.S. § 37-101 or as below:
1. "Agricultural Development Lease" means a lease for the purpose of developing land into agricultural land on State Trust Land.2. "Agricultural Lease" means a lease for the purpose of developing land into agricultural land on State Trust Land.B. Land available for an agricultural lease; term of leases. All State Trust Land classified as agricultural land are available to lease for agricultural purposes for such term as may be established by the Department, provided the term does not exceed: 1. Ten years for an agricultural lease or a renewal of an agricultural development lease; and2. Two years for an initial agricultural development lease.C. Appraisal. Farm areas are geographically determined within the State and appraised by farm area every 10 years, or as market and other conditions dictate pursuant to A.R.S. § 37-282.01(G).
D. Sequence of development and improvement of land under an agricultural development lease.
1. The lessee of an agricultural development lease must initially only develop the leased land to the extent necessary and incident to the acquisition of a water supply adequate for the development of the leased land. The lessee must apply to the Department to make an improvement for said development of the leased land.2. To make an improvement on the leased land which is not necessary to the accomplishment of subsection (D)(1) above, the lessee of an agricultural development lease must apply to the Department. The Department may not approve an application to place an improvement which is not necessary to the accomplishment of subsection (D)(1) above until after the acquisition of such water supply has been accomplished or assured.E. Compliance with regulations made by other state and federal agencies; remedies for non-compliance. When rules and regulations promulgated by state or federal regulatory agencies would affect State Trust Land under an agricultural lease or an agricultural development lease or crops grown thereon, the Department may require the lessee to conform with these regulatory practices to prevent the deterioration of the soil or crops grown thereon. If the lessee fails to comply with the requirements of the Commissioner, the Department may have the required remedial work accomplished and bill the lessee the amount expended for the remedial work. Failure by the lessee to pay for such remedial work shall, after the proper notice, subject the lease to forfeiture for nonpayment and noncompliance.
F. Preferred right of renewal of an agricultural development lease; Denial of renewal of an agricultural development lease. A lessee of an agricultural development lease shall not have a preferred right of renewal if the lessee has not acquired a water supply deemed by the Department to be adequate. The Department may deny a renewal application of an agricultural development lease if the lessee has not completed substantial due diligence toward complete agricultural subjugation and the development of the land beyond the acquisition of an adequate water supply, as determined solely by the Department.
Ariz. Admin. Code § R12-5-702
Original rule, Art. III, Subchapter B, Ch. II (Supp. 76-4). Amended by emergency action effective June 20, 1990, pursuant to A.R.S. § 41-1026, valid for only 90 days (Supp. 90-2). Emergency expired. Section R12-5-702renumbered from Section R12-5-151 (Supp. 93-3). Amended by final rulemaking at 30 A.A.R. 2360, effective 8/19/2024.