For Release January 8, 2006

Time to Review and Renew Agricultural Leases

AGRI-VIEWS
 by Chuck Otte, Geary County Extension Agent

With more than fifty percent of Kansas farm and pasture land rented, agricultural leases are a big deal. Subsequently, the Kansas laws on agricultural leases are equally important and very specific. A lease is a contract and the terms of the lease will be interpreted and enforced under contract law. What makes the situation often all the more confusing, is that Kansas Statutes recognize oral leases as legal and binding for farm and pasture land. As such, certain provisions of the those Kansas Statutes automatically become a part of the lease, whether the parties know it or want it!

January is a critical time for landlords and tenants to review ag leases. By statute, the only way to terminate an oral lease, or a written lease that does not specify otherwise, is to do so in writing, at least 30 days prior to March 1st and setting the termination date of the tenancy as March 1st. When proper notice was given 30 days prior to March 1st setting March 1st as the termination date but the land had already been planted to wheat, or some other fall seeded crop, the notice will be construed as fixing the termination date on those fall seeded acres as the day following the last day of harvest OR August 1st, whichever comes first.

So if a landlord and tenant have an unresolved issue and the landlord wishes to terminate the oral lease, the landlord has until January 30th to have a written notification delivered to the tenant. If the landlord waits until February 1st then the tenant has the land for another year, assuming that the landlord gives proper notice setting the next March 1st as the termination date. Serving the termination notice is best done by registered mail because the tenant must sign a receipt and that receipt can be shown as proof of notification. But you must send it enough in advance of January 30th for it to be delivered by or before that date.

In a survey conducted a few years back, over half of all leases were oral leases. Many people just seem much more comfortable talking things over and then shaking hands to seal the deal. While I respect that time honored tradition that "I'm good to my word" there are certain problems with oral leases.

For starters, as I've already mentioned, you are locked in to very specific starting and ending dates. That goes for pastureland and cropland. When a landlord leases a field under an oral agreement, he or she may not be aware that they have immediately also turned over hunting rights and have limited their access to the property except for very specific reasons. Granted, there are often informal agreements regarding access to property, hunting rights, etc. but if the lease winds up in court, those informal agreements mean nothing!

A written lease, however, gives a lot more flexibility. It can state whatever termination date it wants to. A landowner can retain access and hunting rights with a written lease. The landlord can stipulate what crops will be planted, what kind of land improvements will or won't be done and even have the lease cover multiple years. Oral leases depend on both parties to hear and remember the same thing. With a written lease, you don't have to remember because it is written down and both parties have a copy.

The ag lease laws are very complex and we have a bulletin at the Extension Office on ag lease laws. We also have various sample lease forms to help you if you decide that you want to change to a written lease.

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