For Release January 23, 2001

Oral Farm Lease Termination Date Is Approaching

AGRI-VIEWS
by Chuck Otte, Geary County Extension Agent

On the one hand, I guess we should consider it a wonderful hold over of tradition, that in the era of technology, get it in writing and court cases deciding everything, that over half of the agricultural land leases are still oral agreements. I’ll be the first to say that there are certain advantages to have a written lease. But if you insist on having an oral lease, make sure it’s handled in the legal manner.

The following discussion only pertains to oral crop land leases. Pasture leases are different and this discussion has nothing to do with equipment, livestock or urban residential leases. This is only about oral leases for farmland used in crop production or, as the statutes call it, cultivated land.

Kansas law is very specific about oral leases on cultivated land. Kansas law recognizes oral leases as legal and binding. Oral leases are considered annual leases which automatically renew UNLESS proper notification is given. In fact, the following provisions of proper termination also hold for written leases IF no termination date is stated by the lease.

There are three specific items that must be met for a notice to terminate to be legally binding. First of all, the notice must be in writing. It may be delivered in person, although it is generally recommended that the notice be mailed in some manner that will generate a signed confirmation. Secondly, notice to terminate the lease must be done at least 30 days prior to March 1st. If you are mailing the notice, be certain that it will arrive at least 30 days prior to March 1st.

The final necessary part of the legal notice states that the termination date of the tenancy will take place on March 1st. The only exception is that on any land where a fall seeded crop has been planted (such as wheat) that the tenancy on these acres will terminate the day following the last day of harvest or August 1, whichever comes first. All the cultivated land that isn’t planted to wheat transfers to the new lease on March 1st, the wheat ground transfers after harvest.

This section can cause a little confusion. If you served notice to a tenant on August 1st of 2001, yet before they planted their winter wheat, they would still be entitled to plant their wheat and harvest their 2002 wheat crop. The notice to terminate would be considered legal and binding, but not until March 1, 2002 on unplanted crop land and the day after harvest or August 1, 2002 for that land planted to wheat this fall. It doesn’t matter that they hadn’t planted their wheat yet when served notice, they still have another "wheat year" to farm the land.

If either the landowner or the tenant dies while the farm lease is in effect, the decedent’s executor or administrator is required to comply with the terms of the lease. There are numerous other things that can happen, including land sales, that my advice would be to visit with a lawyer!

Pasture leases are considered different than cultivated land leases based on a 1953 Kansas Supreme Court ruling. A pasture lease is traditionally construed as a lease for a specific period of time, perhaps May 1 to October 30, and a notice to terminate is not necessary. The vagueness of pasture leases does create a lot of opportunity for confusion. A written lease would eliminate a lot of the potential confusion on pasture leases. Sample leases and blank lease forms, as well as a good bulletin on the Kansas farm lease law are available at the Extension Office and on the web at: http://www.oznet.ksu.edu/library/agec2/ and then click on Land, Leases, Law.

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